Vietnam's Ministry of Finance has announced the official launch of the General Department of Taxation's Electronic Portal for Foreign Suppliers (NCCNN) on 21 March 2022 for foreign suppliers to comply with the rules for taxation of e-commerce implemented by Circular No. 80/2021/TT-BTC of 29 September 2021. The NCCNN e-portal is accessed at etaxvn.gdt.gov.vn, in both English and Vietnamese, and allows for the handling of tax registration, declaration, and payment under the e-commerce rules. As previously reported, non-resident suppliers (providers) are responsible for tax registration, declaration, and payment if they do not have a fixed place of business (permanent establishment) in Vietnam and conduct e-commerce or digital-based business with organizations and individuals in Vietnam. Alternatively, non-resident suppliers may authorize tax organizations or agents operating in Vietnam to fulfil their obligation on their behalf.
As explained in the introduction document provided on the NCCNN e-portal, the taxation of e-commerce includes both a value added tax (VAT) component and a corporate income tax (CIT) component as follows depending on the type of supply:
- Services - 5% VAT and 5% CIT
- Restaurant, hotel, and casino management services: 5% VAT and 10% CIT
- Services associated with goods: 3% VAT and 1% CIT
- Services associated with goods where the value of the services and goods cannot be separated: 5% VAT and 2% CIT
- Supply and distribution of goods in Vietnam under the on-spot import and export condition or according to international trade terms (Incoterms): 0% VAT and 1% CIT
- Other activities: 2% VAT and 2% CIT
It is also noted that if a non-resident supplier is resident in a country or territory with which Vietnam has an effective tax treaty, the procedures for tax exemption or reduction shall be carried out in accordance with the relevant treaty.
Foreign suppliers must make quarterly tax declarations using Form No. 02/NCCNN, along with payment. The deadlines are 30 April for the first quarter, 30 July for the second quarter, 30 October for the third quarter, and 30 January for the fourth quarter.