As of now, 116 foreign providers have registered for tax purposes through the electronic portal, an increase of five entities since the previous update at the end of last month. Major foreign providers that declare and pay taxes include Google, Meta (Facebook), Microsoft, TikTok, Netflix, and Apple.
By early October, these multinational companies had paid over VND8.6 trillion, up by nearly 26 percent compared to the same period last year. With this additional payment, the cumulative tax contribution since March 2022, when the electronic portal for foreign providers was launched by the General Department of Taxation, has reached VND20.174 trillion.
Currently, foreign providers such as Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple account for approximately 90 percent of the cross-border e-commerce service revenue market in Vietnam.
Recently, several cross-border e-commerce platforms, including Temu, Shein, and 1688, have been selling goods in Vietnam without formally registering their businesses with local authorities. These platforms are required to declare and pay taxes as foreign service providers.
Mr. Mai Son, Deputy Director General of the General Department of Taxation, explained that these foreign providers must register, calculate, declare, and pay taxes quarterly through the General Department of Taxation’s online portal.
While these platforms self-report their tax obligations, Mr. Mai Son noted that if discrepancies in reported revenue are detected, the tax authorities will cross-check data to verify accuracy. In cases where discrepancies are found, authorities will enforce compliance and may conduct inspections if tax evasion or fraud is suspected.
A representative from the General Department of Taxation added that Temu, the owner of the e-commerce platform, reported zero revenue for the third quarter of 2024. However, starting in October 2024, Temu will be required to declare taxes, with any revenue from this period included in the next quarterly report.
