Vietnam e-services VAT
Vietnam has imposed VAT collections on foreign providers of electronic services starting 1 July 2020. This includes a withholding VAT obligation.
In addition to e-services, the tax net has also been extended to goods sold via e-commerce. VAT in Vietnam is currently 10%, with a reduced VAT rate for basic foodstuffs.
Scope of e-services
E-services includes income from: download or streaming media; app's; e-books and online journals; e-learning; Software-as-a-Service provisions; gaming; and online gambling.
Vietnamese VAT compliance
Non-resident providers are required to register and report VAT charges to the General Department of Taxation. Vietnam is also requiring payment providers to withhold VAT on payments by their customers to foreign providers.
Vietnam has also introduced a Withholding VAT for payments to non-resident sellers of goods and services. This is administered by payment providers, including banks and credit card issuers.