Vietnam: MoF issues Circular 80 guiding the Policy on Tax administration for e-Commerce business activities

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Vietnam’s Ministry of Finance (MoF) issued Circular 80/2021/TT – BTC (“Circular 80”) which set out guidelines to the implementation of the Law on Tax administration in 2019 (Law 38/2019/QH14) and Decree No. 126/2020/ND-CP. Starting 1st January 2022, tax registration, tax declaration, and payment of overseas suppliers shall be done electronically on the General Department of Taxation Portal.  



1.Circular 80’s guidance will affect both direct and indirect taxpayers, which are: 

  • Overseas suppliers of goods and service providers who do not have a permanent establishment in Vietnam
  • Overseas suppliers will be required to register for a tax identification number. 
  • The first direct declaration can be registered using form 01/NCCNN.  
  • The following periodic declarations can be done using form 02/NCCNN.  
  • The applicable tax rates depend on the activities and fees charged. 


Digital platforms (i.e., Netflix and Steam) who are foreign businesses who earn income through Vietnamese individuals will also have to pay taxes in Vietnam. This also includes online marketplaces such as Amazon and eBay. 



2. Organizations and individuals in Vietnam who purchase goods and services from overseas suppliers 


3. Organizations and tax agents who are authorized by overseas suppliers to register, declare, and pay taxes in Vietnam 


4. Commercial banks and payment intermediary service companies 


Financial institutions will be responsible to declare and pay withholding taxes to the local tax authority monthly using form 03/NCCNN enclosed in Appendix I of Circular 80. The due date for tax declaration and remittance will be on the 10th day of each month. 



Guidance relating to Value Added Tax (“VAT”): 


  • Remove the regulation on VAT declaration for out-of-province sales to local tax authorities. 
  • For real estate transfer and construction activities: the allocated VAT is 1% of the revenue generated in that province reducing from the 2% previously required; 
  • For dependent units, the business locations which are production facilities, the allocation method remains unchanged compared to the old regulations, their allocation rate is still 1% applied for products subject to VAT rate 5 % and 2% for products subject to 10% tax. In case the production facility transfers finished or semi-finished products to other internal units for sale, the turnover of the manufactured products shall be determined on the basis of the production costs of the products. 
  • If the tax amount to be distributed in the provinces is larger than the total tax payable at the head office, the allocation shall be made according to the ratio of revenue (exclusive VAT) of products produced in each province to total revenue (exclusive VAT) of taxpayer’s manufactured products. 



Vietnam is seen as one of the fastest-growing middle class country in Southeast Asia. With over 60 million internet users, the country experienced phenomenal growth in its e-commerce market. The market is governed by Decree 52/2013/ND-CP issued in 2013 regulated by the Ministry of Industry and Trade (MOIT). The country’s key e-commerce operators include Shopee, Tiki, Lazada, Shopee, Sendo and The Gioi Di Dong (Mobile World). We highly recommend that online sellers and businesses to plan ahead in order to be compliant with the General Department of Taxation. 



Sources: Ministry of Industry and Trade’s E-Commerce and Digital Economy AdministrationVietnam E-Commerce Association

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