The launching ceremony of the web portal Etaxvn.gdt.gov.vn

Facilitating tax payments

The portal aims to help overseas suppliers fulfill their tax obligations to the state budget of Vietnam. It not only allows foreign suppliers to register, declare and pay taxes, but also to look up information about Vietnam’s tax system and e-commerce policies.

The Etax-Mobile app will help taxpayers, especially individuals and business households, look up information on tax laws and policies, tax obligations and convenient payment. It also helps limit social contact in the context of the COVID-19 pandemic and promote non-cash payments.

According to General Director of Taxation Cao Anh Tuan, the new tools place taxpayer services at the center and greatly increase efficiency.

Once foreign companies complete registration on the portal and app, they will receive an electronic transaction account and tax codes on e-mail to carry out the relevant procedures. Based on their earned revenue, enterprises will pay the corresponding value added tax and corporate income tax. The portal also serves periodic tax authority inspections.

Mobile device application enables convenient tax payments

Improving tax collection

According to Nguyen Van Phung, Director of the Large Taxpayers Department (under GDT), a growing number of foreign enterprises have been providing their services in the Vietnamese market in recent years, the taxes have only been collected through the contractors’ tax mechanism.

Since 2014, Vietnamese organizations such as banks, advertising and other service providers paying foreign parties must set pay what is known as a contractor tax. However, this system has not been applied to tax collection on transactions between foreign suppliers and individual Vietnamese customers.

Experts say that the portal Etaxvn.gdt.gov.vn and the Etax-Mobile app have created a major turning point in tax management for Vietnam, especially overseas suppliers that do not operate in Vietnam, creating a firm legal corridor for tax authorities as well as ensuring a fair business environment, and also a transparent tax payment mechanism for foreign businesses.

The state has collected nearly VND5 trillion from business activities on the internet, mainly through the

contractor tax mechanism. The new tax collection mechanism is expected to increase tax collection by an

estimated 20-30 percent.

Thanh Tam