In recent years, alongside improving control over tax evasion in the e-commerce sector, the Ministry of Finance has also researched and introduced electronic tax services and online tax payment applications to support businesses. These applications enable foreign suppliers to conduct online tax transactions anytime, anywhere, even without offices in Vietnam.
Foreign suppliers can file taxes online.
On the morning of March 21st, the General Department of Taxation officially launched the Etaxvn.gdt.gov.vn electronic portal for overseas suppliers.
The launch of the Etaxvn.gdt.gov.vn electronic portal and the eTax Mobile application for mobile devices aims not only to manage taxes effectively but also to facilitate the development of e-commerce activities.
Through the e-portal, all transactions from overseas providers such as Google, Facebook, TikTok, etc., can be registered, declared, and taxed for revenue generated in Vietnam from anywhere online, without having to submit hard copies of documents to the tax authorities in Vietnam.
Clearly, having a dedicated application for foreign suppliers creates a level playing field between traditional business models and e-commerce activities, especially for foreign businesses.
How to register for electronic tax transactions
"When registering for electronic tax transactions, foreign providers will register for electronic tax transactions along with the initial tax registration through the portal. Simultaneously, they must ensure stable internet access and use, and have an email address for communication with the directly managing tax authority.", a representative from the Department of Taxation for Large Enterprises noted.
The supplier completes the electronic tax registration along with the initial tax payment through the portal:
All related procedures on the portal are authenticated using an electronic transaction authentication code. The code will be sent to the email address that the provider registered with the Vietnamese tax authorities when performing initial tax registration or registering changes to information (if any).
Overseas suppliers are only allowed to register one official email address to receive all necessary notifications during transactions with the directly supervising tax authority.
After successfully completing the initial tax registration procedure, the portal will send relevant transaction account information and tax identification number to the taxpayer's registered email address to facilitate tax-related procedures.
In cases where the supplier already has a directly registered tax identification number:
In cases where the overseas supplier directly or authorizes the registration, declaration, and payment of taxes, the tax identification number is determined according to the regulations in Circular No. 105/2020/TT-BTC issued on December 3, 2020, by the Ministry of Finance.
Online tax payment method
Regarding the electronic tax payment method, after receiving the tax payment identification code from the General Department of Taxation, overseas suppliers make tax payments in foreign currency into the state budget revenue account. Tax payments must be made with the correct tax payment identification code sent by the General Department of Taxation. Taxpayers must pay taxes in the same freely convertible foreign currency in which they declared their tax returns.
Taxable revenue for value-added tax and corporate income tax purposes is the revenue received by the foreign supplier in Vietnam. The amount of tax payable, including value-added tax and corporate income tax, is calculated based on the percentage of revenue received by the foreign supplier.
In cases where the foreign supplier is located in a territory that has signed a tax agreement with Vietnam, the tax exemption or reduction procedure will be applied according to the Double Taxation Avoidance Agreement.
