The cross-border advertising service business in Vietnam must pay tax

Review the content of Decree No. 181/2013 / ND-CP dated November 14, 11 of the Government detailing a number of articles of the Law on Advertising ”There are basic regulations governing cross-border advertising in Vietnam, but there are no specific regulations on the responsibilities of the service providers, especially on content censorship of advertising products. Report before issue and fulfill tax obligations.

At the same time, there is an overlap and ambiguity in the assignment of responsibility for state management of cross-border advertising between the two ministries of TT-TT and the Ministry of Culture, Sports and Tourism.

Therefore, The Ministry of Information and Communications presided over the drafting process, collecting comments from businesses, experts and people to amend and supplement a number of articles of this Decree.

Collect taxes online

Highlights in the Draft Decree No. 181/2013 / ND-CP on the Law on Advertising

The draft is expected to amend and supplement the name of Chapter 3 of the above decree as follows: "Cross-border advertising services in Vietnam".

Including amending and supplementing Article 13 of that chapter on the rights and obligations of organizations and individuals participating in the provision of cross-border advertising services in Vietnam. As follows:

  • Foreign organizations and individuals providing cross-border advertising services on the network environment and generating revenue in Vietnam (via websites, social networks, apps with people accessing from Vietnam or using users in Vietnam):  right comply with the provisions of Vietnamese law on advertising, the management, provision, and use of Internet services and information on the Internet; must pay tax.

Must actively review and inspect advertising products that do not violate the provisions of the Law on Advertising and do not place advertising products in positions with content violating the provisions of the Law on Cyber ​​Security. Foreign organizations and individuals providing cross-border advertising services in Vietnam must also prevent, remove and handle infringing information at the request of the Ministry of Information and Communications and the relevant authorities. competent.

  • Advertising service dealers: must comply with regulations on paying taxes. 

At the same time, when performing advertising service contracts on the platform of foreign organizations and individuals doing cross-border advertising services in Vietnam, they must also be responsible for checking the contents of advertising products and request organizations and individuals providing cross-border advertising services to choose an advertisement placement without violating the provisions of the Law on Cyber ​​Security.

  • Advertisement publisher in Vietnam: must ensure the ability to control to detect and remove products from cross-border advertising services in violation of law provisions. Not posting or distributing advertising products of organizations and individuals providing cross-border advertising services that have been notified in writing by competent authorities to violate Vietnamese laws.
  • Advertisers: do not post or distribute advertising products on advertising platforms in violation of Vietnamese law and take responsibility for advertising products when directly signing advertisements with foreign organizations or individuals providing advertising services. cross border in Vietnam.

Advertising service providers and foreign organizations and individuals providing cross-border advertising services in Vietnam make regular reports every 12 months on December 15 or ad hoc reports as required on the provision of cross-border advertising services in Vietnam to the Ministry of Information and Communications (the Department of Radio, Television and Electronic Information) in the prescribed form or with ad-hoc reports at the request of the agency. Authorized state management of advertising on cross-border advertising service provision platforms.

The Ministry of TT-TT said that online advertising activities are accounting for a large proportion of the total advertising investment in Vietnam. In particular, the two main platforms that organizations, businesses and individuals choose to advertise online most are those of the two cross-border advertising service providers Google and Facebook, accounting for about 2% of revenue. Online advertising market.

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