What is a bank or intermediary payment service provider in the field of taxation in Vietnam?

What is a bank or intermediary payment service provider in the field of taxation in Vietnam?

Based on Clause 8, Article 3 Circular 19/2021/TT-BTC, the definition of a bank or intermediary payment service provider in the field of taxation in Vietnam is as follows:

Definition of Terms

In this Circular, the following terms are understood as follows:

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8. “bank or intermediary payment service provider” (IPSP) refers to a bank or IPSP where taxpayers make payments to the state budget under the Law on Tax Administration.

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Therefore, according to the above regulation, a bank or intermediary payment service provider in the tax sector in Vietnam can simply be understood as the location where taxpayers execute payments into the state budget.

What is a bank or intermediary payment service provider in the field of taxation in Vietnam? (Image from the Internet)

Can taxpayers in Vietnam choose the method of electronic transactions through a bank providing intermediary payment services?

Based on Clause 2, Article 4 Circular 19/2021/TT-BTC on principles in electronic tax transactions:

Principles of Electronic Tax Transactions

1. Taxpayers conducting electronic tax transactions must have the ability to access and use the Internet, have an email address, have a digital signature as regulated in Article 7 of this Circular, or have a mobile phone number issued by a telecommunications company in Vietnam (for individuals who have not been issued a digital certificate) registered for transactions with tax authorities unless the taxpayer chooses the electronic tax payment method as specified in point dd, clause 2 of this Article, following the regulations of a bank or intermediary payment service provider.

2. Taxpayers can choose the following methods to conduct electronic tax transactions through:

a) The General Department of Taxation's electronic portal.

b) The national public service portal, the Ministry of Finance’s electronic portal connected to the General Department of Taxation's electronic portal.

c) The electronic portals of other competent state authorities (except point b of this clause) connected to the General Department of Taxation's electronic portal.

d) An organization providing T-VAN services accepted by the General Department of Taxation connecting to the General Department of Taxation's electronic portal.

dd) The electronic payment services of banks or intermediary payment service providers to execute electronic tax payments.

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Thus, taxpayers can entirely choose the method of electronic transactions through a bank providing intermediary payment services to handle electronic tax activities between taxpayers and tax authorities.

How do taxpayers in Vietnam register to choose the method of electronic transactions through a bank providing intermediary payment services?

Based on Clause 3, Article 4 Circular 19/2021/TT-BTC on principles in electronic tax transactions:

Principles of Electronic Tax Transactions

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3. Registering to use the electronic tax transaction method

a) Taxpayers conducting electronic tax transactions through the General Department of Taxation's electronic portal must register to conduct electronic tax transactions as stipulated in Article 10 of this Circular.

b) Taxpayers conducting electronic tax transactions through the national public service portal or the Ministry of Finance’s electronic portal connected to the General Department of Taxation's electronic portal must register according to the guidance from the managing agency of the system.

c) Taxpayers conducting electronic tax transactions through other competent state authorities’ electronic portals connected to the General Department of Taxation's electronic portal must register according to the guidance from the competent state authorities.

d) Taxpayers conducting electronic tax transactions through an organization providing T-VAN services accepted by the General Department of Taxation connecting to the General Department of Taxation's electronic portal must register to conduct electronic tax transactions as stipulated in Article 42 of this Circular.

Within the same period, taxpayers are only allowed to register and execute one of the administrative tax procedures specified in point a, clause 1, Article 1 of this Circular through the General Department of Taxation's electronic portal, the national public service portal, the Ministry of Finance’s electronic portal, or a T-VAN service provider (except for cases specified in Article 9 of this Circular).

dd) Taxpayers choosing the method of electronic tax payment through the electronic payment services of a bank or intermediary payment service provider must register according to the guidance from the bank or intermediary payment service provider.

e) Taxpayers who have registered for electronic transactions with tax authorities must conduct transactions with tax authorities electronically as specified in clause 1, Article 1 of this Circular, except for the cases specified in Article 9 of this Circular.

Therefore, if taxpayers wish to choose the method of electronic transactions through a bank providing intermediary payment services, they need to register according to the guidance from the bank or intermediary payment service provider.