Vietnam: Adopted Circular No. 80/2021/TT-BTC including taxes for foreign e-commerce platforms

On 29 September 2021, the General Department of Taxation (GDT) adopted Circular No. 80/2021/TT-BTC, which included provisions for platform intermediaries in the e-commerce sector. Chapter IX delineates the tax obligations of foreign e-commerce and digital-based business entities that operate without a permanent establishment in Vietnam. The Circular requires that suppliers register for taxes electronically, file quarterly declarations, and pay taxes based on their revenue in freely convertible foreign currencies. In the event of non-compliance by suppliers, Vietnamese organisations and individuals are obliged to withhold and pay taxes on purchases. It is the responsibility of commercial banks and payment intermediaries to monitor transactions and report payments to foreign suppliers. Furthermore, the circular delineates the procedures for tax adjustments and error corrections for foreign suppliers. Finally, the tax authorities are granted the authority to collaborate with overseas tax authorities and enforce tax compliance.