Vietnam foreign B2C e-commerce withholding VAT July 2020
- Jul 3, 2019 | Richard Asquith
Vietnam is to extend VAT to non-resident e-commerce sales to consumers from 1 July 2020. This will apply to goods and digital services.
The obligation to collect the VAT will fall on banks and/or payment providers, including credit card issuers. It will be their responsibility to identify payments by consumers to foreign online sellers, and deduct withholding VAT. There are limited details of how this will be managed.
Nevertheless, non-resident sellers over the local VAT registration threshold, will also be required to VAT register. This may therefore result in a VAT credit where the indirect tax has already been withheld.
Latest Vietnamese news
July 3, 2018
Vietnam’s government is considering a VAT rise from the current 10% standard and 5% reduced rates. The tax rise is required to meet commitments...
August 25, 2017
The Vietnamese Finance Ministry has proposed rising the VAT rate from 10% to 12%. If approved, the new rate would apply from 1 January...
September 16, 2016
The Vietnamese government has ordered Uber to pay 3% VAT on its taxi services. It will also be required to pay 2% corporation tax....
Sign up for our free newsletter stay up-to-date with the latest tax news.
Sign-up to VAT Voice, Avalara’s monthly round-up about VAT and legislation updates to help you stay ahead of the curve.