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Official Gazette

Monday, October 3, 2022

Tax payment by foreign suppliers in Vietnam

Updated: 15:00’ - 13/05/2022
We are foreign suppliers and currently engaged in e-commerce and business activities based on digital platforms as well as some other services in Vietnam but we do not have permanent establishments here. So, how do we pay taxes in the country?

From March 21, 2022, foreign suppliers without any presence in Vietnam may pay tax for their turnover generated in the country via the portal http://etaxvn.gdt.gov.vn. Specifically, a foreign supplier (taxpayer) may use a single email address throughout the process of tax registration, declaration and payment as follows:

Tax registration

Step 1: The taxpayer prepares a tax registration dossier in accordance with law.

Step 2: The taxpayer logs in the Portal of the General Department of Taxation (GDT) for creation and sending of the tax registration dossier.

Step 3: The GDT’s Portal sends a verification code to the taxpayer’s email address.

Step 4: The taxpayer uses the verification code to send the tax registration dossier to the GDT’s Portal.

Step 5: The GDT’s portal sends a notice of receipt of the e-tax registration dossier to the taxpayer.

Step 6: After receiving the tax registration dossier, the tax office examines its components and contents:

- For the first-time tax registration:  

+ In case the dossier is complete and valid, the tax office will accept it and send the GDT’s notice of grant of a tax identification number and information on the account for logging in the GDT’s Portal to the taxpayer’s email address. The taxpayer will use the transaction code stated in the notice to search information and status of the first-time tax registration dossier it/he/she has submitted.

+ In case the dossier is incomplete or invalid, the tax office will send a notice of invalid contents to the taxpayer’s email address. The taxpayer will use the transaction code stated in the notice to search the unsuccessfully submitted dossier, modify the dossier and then submit it again.

- For changes in tax registration information: The tax office will examine the taxpayer’s dossier of registration of change in tax registration information, update valid information and send a notice of valid information and invalid information to the taxpayer’s email address. The taxpayer will use the transaction code stated in the notice to search the submitted dossier, then modify and submit it again.

- Time limit for dossier processing:

+ In case the dossier is complete, the tax office will notify the acceptance of the dossier and process the dossier within three working days from the date of dossier receipt;

+ In case the dossier is incomplete, the tax office will notify such to the taxpayer within two working days from the date of dossier receipt.

- No charge and fee will be imposed.

- Dossier components:

+ For the first-time tax registration: A tax registration declaration, made according to Form No. 01/NCCNN.

+ For change in tax registration information: A declaration of modified or supplemented tax registration information, made according to Form No. 01-1/NCCNN.

Manufacturing smartphones at a workshop of Samsung Electronics Vietnam Co .Ltd. in Yen Binh industrial park, Thai Nguyen province__Photo: Anh TuanVNA

Tax declaration

Step 1: The taxpayer prepares a tax declaration dossier in accordance with law.

Step 2: The taxpayer logs in the GDT’s Portal to make and send the tax declaration dossier.

Step 3: The GDT’s Portal sends a verification code to the taxpayer’s email address.

Step 4: The taxpayer uses the verification code to send the tax declaration dossier to the GDT’s Portal.

Step 5: After receiving the tax declaration dossier, the GDT’s Portal sends a notice of confirmation of submission of the written declaration, notifies the identification number of the payable tax amount and provides instructions on tax payment. The taxpayer uses the e-transaction code stated in the notice to search the tax declaration dossier it/he/she has submitted to the tax office.

Step 6: The tax office’s application system receives and acknowledges the tax obligation based on the taxpayer’s tax declaration dossier.

- No charge and fee will be imposed.

- Dossier components:

+ For the first-time tax declaration or a modified tax declaration dossier: A tax declaration for e-commerce business activities in Vietnam, made according to Form No. 02/NCCNN.

Tax payment

Step 1: The taxpayer uses the identification number of the payable tax amount and pays tax under the guidance provided in the tax office’s notice. It must be noted that the taxpayer is required to pay tax in the freely convertible foreign currency in which it/he/she has made the tax declaration.

Step 2: The bank where the State Treasury of Vietnam (STV) opens a tax collection account receives the taxpayer’s payment documents and transmits information on payment into the state budget to the STV. After accounting the state budget revenue, the STV transmits information on payment into the state budget to the tax office for clearing against the taxpayer’s tax obligation.

Step 3: The tax office updates information on the taxpayer’s documents on payment into the state budget on the GDT’s Portal. The taxpayer uses the e-tax transaction account and identification number of the payable tax amount for searching information.

Mode of payment: Tax payment will be made via the taxpayer’s bank account. At present, five commercial banks, including the Bank for Investment and Development of Vietnam (BIDV), Joint-Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint-Stock Commercial Bank for Industry and Trade (Vietinbank), Vietnam Bank for Agriculture and Rural Development (Agribank), and Military Commercial Joint-Stock Bank (MB), have completely connected with tax offices for providing the service of e-tax payment via the eTax Mobile app.

- No charge and fee will be imposed, except account transfer charge under banks’ regulations.

- Dossier components: Document on the via-bank payment into the state budget. In case the foreign supplier authorizes an organization or a tax agent operating in accordance with Vietnam’s law (the authorized party), the authorized party will carry out procedures for tax registration, declaration and payment under the contract signed with the foreign supplier and regulations applicable to foreign suppliers.

* Information on identification numbers of payable tax amounts:

Tax office code Code of tax collector Name of tax office Item Chapter Adminis-trative area code Collection account Treasury identification number
82501 1131367 Large Taxpayers Depart-ment 1099-TNDN
1749-GTGT
399 00000 7111 0003
 
* List of tax rates for different services:

No. List of services Tax rates (%)
Value-added tax Corporate  income tax
1 Services 5 5
2 Particularly for restaurant, hotel and casino management services 5 10
3 In case of provision of services accompanied with goods, tax rates on goods will be calculated in proportion to total 3 1
4 In case it is impossible to separate the value of goods from that of services 5 2
5 Supply and distribution of goods in Vietnam in the form of on-spot import and export or under Incoterms 0 1
6 Copyright royalty 0 10
7 Charter of airplanes (including also airplane engines and spare parts) and seagoing ships 3 2
8 Loan interests 0 5
9 Transfer of securities, offshore reinsurance 5 - > 0 0.1
10 Derivative financial services 0 2
11 Construction and transport 3 2
12 Other activities 2 2
 

 

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