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Regulations to enhance tax administration in e-commerce in Vietnam ?

Today, July 01, 2020, the Law on Tax Administration No. 38/2019/QH14, dated June 13, 2019 (hereinafter called “the Law on Tax administration”) comes into effect. There are new regulations to enhance tax administration in e-commerce as follows:

Regulations to enhance tax administration in e-commerce

Commercial banks will be responsible for deducting and paying tax on behalf of foreign enterprises, foreign individuals who conduct e-commerce activities and derive income from Vietnam (Clause 3 Article 27 Law on tax Administration). 

With respect to e-commerce activities, business activities based on digital platforms and other services conducted by an overseas supplier without permanent establishments in Vietnam, the overseas supplier must register a tax code, declare and pay tax in Vietnam, either directly or by authorization (Clause 4 Article 42 Law on tax Administration). 

When making payment to overseas entities who conduct cross-border business activities based on digital platforms with no presence in Vietnam, the Vietnamese party must withhold, declare and pay tax under the overseas entity’ registered tax code (Clause 6 Article 35 Law on tax Administration). 

Related topics:

Are VAT invoices required for exported goods, services ?

Foreign Contractor Tax (FCT) in Vietnam

Deadlines for filing tax returns and deadlines for tax payment in Vietnam

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DMS Law firm in Vietnam
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(Signed)
Lawyer Do Minh Son