What are regulations on direct tax calculation and declaration by overseas suppliers in Vitenam?

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• In Vietnam, what is direct tax calculation and declaration by overseas suppliers regulated?

In Vietnam, what re regulations on direct tax calculation and declaration by overseas suppliers?

Pursuant to Article 77 of Circular 80/2021/TT-BTC, direct tax calculation and declaration by overseas suppliers as follows:

1. Overseas suppliers shall declare tax directly on the online portal of General Department of Taxation, use verification codes provided by their supervisory tax authorities via the online portal of General Department of Taxation, and send electronic tax declaration dossiers to their supervisory tax authorities as follows:

a) Overseas suppliers shall declare and pay tax quarterly

b) The electronic tax form shall be prepared according to Form No. 02/NCCNN in Appendix I hereof.

c) Overseas supplier shall pay VAT and CIT as a percentage of revenue.

c.1) The revenue subject to VAT shall be the revenue received by the overseas supplier.

c.2) The revenue subject to CIT shall be the revenue received by the overseas supplier.

VAT rates are specified in Point b Clause 2 Article 8 of the Government’s Decree No. 209/2013/ND-CP dated 18/12/2013 elaborating some Article of the Law on Value-added Tax.

dd) CIT rates are specified in Point b Clause 3 Article 11 of the Government’s Decree No. 218/2013/ND-CP dated 26/12/2013 elaborating some Article of the Law on Corporate Income Tax.

2. In case errors are discovered by the overseas supplier after tax has been declared and paid, complete and submit Form No. 02/NCCNN in Appendix I hereof to adjust the amount of tax payable in Vietnam.

3. Rules for determination of revenue subject to tax in Vietnam:

a) Information used for identification of transactions of organizations and individuals purchasing goods and services in Vietnam:

a.1) Information relevant to payments made by the organization or individual in Vietnam, such as information about the credit card based on Bank Identification Number (BIN), bank account or similar information used by the buyer to pay the overseas supplier.

a.2) Information about residence of the organization or individual in Vietnam (payment address, delivery address, home address or similar information provided by the buyer for the overseas supplier).

a.3) Information about access of the organization or individual in Vietnam such as country code of the SIM card, IP address, landline location or similar information about the buyer.

b) When a transaction is found to be located in Vietnam, the overseas supplier shall:

b.1) Use 02 consistent pieces of information, including information about payment made by the organization or individual in Vietnam and information about residence or access of the organization or individual in Vietnam.

b.2) In case information about the payment made by the organization or individual cannot be collected or contradict the other information, the overseas supplier may use 02 consistent pieces of information, including information about residence and information about access of the organization or individual in Vietnam.

4. The overseas supplier shall use the verification code provided by the supervisory tax authority when declaring or making adjustments.

5. After the overseas supplier has declared or adjusted tax, the supervisory tax authority shall provide a tax payment identifier for the overseas supplier.

6. The overseas supplier shall retain the information used for identification of transactions of buyers in Vietnam according to Clause 3 of this Article in order to facilitate tax inspection by tax authorities. Retention of information shall comply with relevant regulations of the Law on Tax Administration.

7. In case the overseas supplier is located in a country or territory that has entered into a Tax Agreement with Vietnam, procedures for tax exemption or reduction under Double Taxation Agreement specified in Article 62 of this Circular shall be followed.

Best regard!