Foreign tech-giants account for 90% of the market share in Vietnam’s cross-border e-commerce
sonnguyen 23-11-2022, 10:11
Foreign tech-giants account for 90% of the market share in Vietnam’s cross-border e-commerce

A total of 39 foreign suppliers have registered tax in Vietnam via the portal, the General Department of Taxation reported.

Among them are Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple that account for up to 90% of the market share in the field of cross-border e-commerce.

Other names in the list include iHerb, LLC; Netflix Pte. Ltd; Tiktok Pte. Ltd; Blizzard Entertainment Inc; Educational Testing Service; Ezviz International Limited; and LinkedIn Singapore Tte. Ltd, among others.

Related: Tax Accounting Services for Foreign business in Vietnam

According to the the General Department of Taxation, about 22.2 million USD has been collected via the portal which was exclusively developed for foreign suppliers and put in place on March 21.

The tax agency will step up the communication work in the time ahead to further facilitate tax registration, declaration and payment in Vietnam in line with the country’s commitments and regulations on added value and corporate income taxes for cross-border services, Vietnam News Agency reported.

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From the beginning of 2018 until the end of this August, tax authorities collected VND trillions in taxes from organizations and individuals earning income from doing business online.

The ministry launched an electronic portal and a mobile application (eTax Mobile) in March for foreign suppliers to declare, register and pay taxes.

So far, there have been nearly 70,000 transactions made through the portal and app, with more than VND308 billion of tax collected.

In order to manage and avoid tax revenue losses in the digital platform business, the finance ministry is working to complete relevant legislation.

The ministry submitted amendments to Decree 126 issued in 2020, stipulating that e-commerce platforms have to provide information, declare and paying taxes on behalf of sellers.

The ministry also proposed amending a number of special regulations to ensure a consistent legal basis for the management of e-commerce platforms, according to local media.