Ads This refers to the use of means to introduce to the public products, goods, and services for profit; products and services without profit; organizations and individuals doing business in the products, goods, and services being introduced, excluding news; social policies; and personal information.
1. Cross-border advertising in Vietnam
1.1. What is cross-border advertising?
Cross-border advertising service provision in Vietnam This refers to the use by foreign organizations and individuals of websites to conduct advertising services from service delivery equipment located outside the territory of Vietnam, to users in Vietnam, generating revenue in Vietnam.
Website for cross-border advertising services In this Decree, an information system is defined as an information system that uses one or more electronic information pages in the form of symbols, numbers, letters, images, sounds, and other forms of information to provide network users with services for storing, providing, using, searching, exchanging information, sharing sounds and images, creating forums, and online chat to provide advertising services.
A common form of cross-border advertising is advertising on platforms like Facebook and Google by Vietnamese advertising service providers.
1.2. Compliance requirements for cross-border advertising
Advertising service providers, advertising publishers, and advertisers, both domestically and internationally. Those engaged in providing cross-border advertising services in Vietnam must comply with Vietnamese laws and regulations on advertising, cybersecurity, and the management, provision, and use of Internet services and online information; and must pay taxes in accordance with tax laws.
Advertiser This refers to organizations or individuals who request advertising for their products, goods, or services, or for the organization or individual themselves.
Advertising service provider An organization or individual that performs one, some, or all stages of the advertising process under an advertising service contract with the advertiser.
Advertiser An organization or individual using advertising media under its management to introduce advertising products to the public includes press agencies, publishers, website owners, organizers of cultural and sports programs, and other organizations and individuals using advertising media.
Advertising service providers, advertising publishers, and advertisers. They are obligated to comply with the regulations in the following Decree:
Decree 70/2021/ND-CP amends Decree 181/2013/ND-CP guiding the Law on Advertising.
Accordingly, regulations on cross-border advertising activities (Facebook, Google ads, etc.) will be tightened, and tax collection management for cross-border advertising activities of individuals providing advertising services will be strengthened.
2. Pay taxes on advertising services.
2.1. Who is responsible for paying taxes?
- Advertising service provider An organization or individual that performs one, several, or all stages of the advertising process under an advertising service contract with an advertiser is required to pay taxes as prescribed by law when generating revenue from advertising services.
- The advertising service provider is also responsible for filing the tax return on behalf of the advertiser. The contractor's tax payable on behalf of the contractor is 5% VAT and 5% corporate income tax for foreign contractors.
2.2. Types of taxes payable on advertising
- Businesses providing advertising services in general, and cross-border advertising in particular, must declare and pay taxes as prescribed, including VAT. 10 % revenue, corporate income tax 20 % x profit (Revenue – expenses).
- Individuals earning income from advertising, including advertising services in general and cross-border advertising in particular, must declare and pay taxes as prescribed, including VAT. 5% revenue, personal income tax 2% revenue.
- Payments to cross-border platforms such as Facebook and Google, which do not have a permanent establishment in Vietnam (no input invoices, payments made via bank accounts or credit cards), must have contractor tax deducted before payment, including: 5% VAT and 5% Corporate income tax for foreign contractors.