Are foreign e-commerce platforms required to register for tax declaration in Vietnam from January 1, 2025?
Are foreign e-commerce platforms required to register for tax declaration in Vietnam from January 1, 2025?
Based on Clause 5, Article 6 of the Law Amending the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserve, and the Law on Handling Administrative Violations 2024 (effective from January 1, 2025), which stipulates the amendment and supplementation of certain articles of the Law on Tax Administration as follows:
Amendment and Supplementation of Certain Articles of the Law on Tax Administration
...
- Amend and supplement certain clauses of Article 42 as follows:
a) Amend and supplement Clause 4 as follows:
“4. For e-commerce business activities, platform-based business, and other services conducted by foreign providers, these foreign providers are obligated to directly, or by authorization, perform taxpayer registration, declare taxes, and remit taxes in Vietnam as stipulated by the Minister of Finance.”;
Thus, when the Law Amending the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserve, and the Law on Handling Administrative Violations 2024 comes into effect on January 1, 2025, all foreign e-commerce platforms must register for tax declaration directly or authorize tax registration, regardless of whether they have a permanent establishment in Vietnam or not.
Are foreign e-commerce platforms required to register for tax declaration in Vietnam from January 1, 2025? (Image from the Internet)
Vietnam: What does the first-time taxpayer registration application include?
Based on Article 31 of the Law on Tax Administration 2019 stipulating the requirements for the first-time taxpayer registration application as follows:
- Taxpayers who register for taxpayer registration in conjunction with enterprise registration, cooperative registration, or business registration will have their taxpayer registration dossier consist of the enterprise registration, cooperative registration, or business registration dossier as stipulated by law.
- Taxpayers that are organizations directly registering with the tax authority must include the following in their taxpayer registration dossier:
+ Taxpayer registration form;
+ A copy of the establishment and operation license, decision of establishment, investment registration certificate, or other equivalent documents issued by competent authorities that are still valid;
+ Other related documents.
- Taxpayers that are households, business households or individuals directly registering with the tax authority must include the following in their taxpayer registration dossier:
+ Taxpayer registration form or tax declaration form;
+ A copy of the citizen identification card, identification card, or passport;
+ Other related documents.
Where shall the first-time taxpayer registration application be submitted in Vietnam?
Based on Article 32 of the Law on Tax Administration 2019 regarding the places for submitting the first-time taxpayer registration application:
- Taxpayers registering for taxpayer registration along with enterprise registration, cooperative registration, or business registration will submit their dossier at the location for enterprise registration, cooperative registration, or business registration as prescribed by law.
- Taxpayers directly registering with the tax authority must submit their taxpayer registration dossier at the following locations:
+ Organizations, business households, and business individuals submit the taxpayer registration dossier at the tax authority where the organization, business household, or business individual is located;
+ Organizations and individuals responsible for tax deduction and filing tax returns submit the taxpayer registration dossier at the tax authority that directly manages them;
+ Non-business households and individuals submit the taxpayer registration dossier at the tax authority where their taxable income arises, where their permanent residence is registered, where their temporary residence is registered, or where their obligations to the state budget arise.
- Individuals authorizing an organization or individual to pay income to register taxpayer registration on their behalf and for dependents must submit the taxpayer registration dossier through the organization or individual paying the income. The organization or individual paying the income is responsible for compiling and submitting the taxpayer registration dossier on behalf of the individual to the tax authority directly managing them.
What is the deadline for the first-time taxpayer registration for taxpayers directly registering with the tax authority in Vietnam?
Based on Clause 2, Article 33 of the Law on Tax Administration 2019, the deadline for the first-time taxpayer registration for taxpayers directly registering with the tax authority is 10 working days from the following dates:
- The date when the business registration certificate, the establishment and operation license, the investment registration certificate, or the decision of establishment is issued;
- The date when business activities commence for organizations that are not subject to business registration or business households, business individuals subject to business registration but have not been issued a business registration certificate;
- The date when the responsibility to deduct and remit taxes and pay taxes on behalf of others arises; organizations paying taxes on behalf of individuals under contract, cooperative agreements;
- The date when contracts for construction work with foreign contractors or subcontractors declaring taxes directly with tax authorities are signed; contracts, agreements on oil and gas activities are signed;
- The date when personal income tax liability arises;
- The date when a tax refund request arises;
- The date when other obligations to the state budget arise.
