In Vietnam, what are the responsibilities of tax authorities in tax administration of e-commerce?

Nội dung chính

• What are the responsibilities of tax authorities of Vietnam in tax administration of e-commerce, digital platform-based business and other services provided? 
• What are the responsibilities of relevant organizations and individuals in Vietnam when buying goods and services from overseas suppliers?

What are the responsibilities of tax authorities of Vietnam in tax administration of e-commerce? 

Pursuant to Article 80 of Circular 80/2021/TT-BTC stipulating the responsibilities of tax authorities in tax administration of e-commerce, digital platform-based business and other services provided as follows:

1. General Department of Taxation is the supervisory tax authority of overseas suppliers and has the responsibility to issue TINs to overseas suppliers as per regulations, receive tax returns and perform tasks relevant to tax declaration and tax payment by overseas suppliers.

2. Update the list of overseas suppliers that apply for taxpayer registration and declare tax directly or by authorization on the online portal of General Department of Taxation.

3. Cooperate with relevant agencies in determining, announcing names and websites of overseas suppliers that have not applied for taxpayer registration, declared and paid tax on goods and services purchased by buyers in Vietnam.

4. Tax authorities in Vietnam are entitled to cooperate with the overseas tax authorities in urging overseas suppliers to declare and pay tax; collect tax arrears if it is possible to prove overseas suppliers declare and pay tax honestly; cooperate with competent authorities in taking actions against overseas suppliers that fail to fulfill their tax obligations in Vietnam.

What are the responsibilities of relevant organizations and individuals in Vietnam when buying goods and services from overseas suppliers?

Pursuant to Article 81 of the Circular on the responsibilities of relevant organizations and individuals in Vietnam when buying goods and services from overseas suppliers as follows:

1. In case an organizations that is established and operating under Vietnam's law, an organization that is registered under Vietnam's law purchases goods or services from an overseas supplier or distributes goods or services on behalf of an overseas supplier that does not apply for taxpayer registration, declare and pay tax in Vietnam in accordance with Article 76, Article 77, Article 78, Article 79 of this Circular, the buyer of distributor shall declare, deduct and pay tax on behalf of the overseas supplier in accordance with Circular No. 103/2014/TT-BTC dated 06/08/2014 of the Ministry of Finance.

2. In case an individual purchases goods or services form an overseas supplier that does not apply for taxpayer registration, declare and pay tax in Vietnam in accordance with Article 76, Article 77, Article 78, Article 79 of this Circular, the commercial bank or payment service provider shall deduct and pay tax in accordance with Point a Clause 3 Article 30 of Decree No. 126/2020/ND-CP.

General Department of Taxation shall provide names and websites of the overseas suppliers that have not applied for taxpayer registration, declared and paid tax for the headquarters of banks and payment service providers in order for their branches to declare, deduct ant pay tax when processing payments for transactions with these overseas suppliers in accordance with the Government’s Decree No. 70/2014/ND-CP. The amount of tax declared, deducted and paid on behalf of overseas suppliers shall be determined according to the revenues received by the overseas suppliers, VAT rates and CIT rates specified in Point d and Point dd Clause 1 Article 77 of this Circular. In case the categories of goods and services of each transaction cannot be determined, the highest VAT and CIT rates shall apply.

3. By the 20^th every month, commercial banks and payment service providers shall declare and pay the tax payable by overseas suppliers to state budget according to Form No. 03/NCCNN in Appendix I hereof.

4. In case an individual purchases goods or services from an overseas supplier and pays with a card or a method where tax deduction by the commercial bank or payment service provider is not possible, the commercial bank or payment service provider shall monitor the amounts transferred to the overseas supplier and send reports to General Department of Taxation on the 10^th every month according to Form No. 04/NCCNN in Appendix I hereof.

5. The declaration, deduction, payment of tax and monitoring of amounts transferred to the overseas supplier by the commercial bank or payment service provider according to Clauses 2, 3, 4 Article 81 of this Circular shall be carried out as soon as the General Department of Taxation sends a notification to the headquarters of the bank or payment service provider.

Best regards!