At a taxation department in Hà Nội. — Photo vneconomy.vn

HÀ NỘI — The Department of Taxation of Large Enterprises under the General Department of Taxation (GDT) has recently announced that four foreign suppliers conducting business in Việt Nam through e-commerce digital platforms have not yet complied with regulations on tax registration through the GDT’s e-portal.

They are Agoda International Pte Ltd (website: https://www.agoda.com), PayPal Pte Ltd (https://www.paypal.com), Airbnb Ireland Unlimited company (https://www.Airbnb.com) and Booking.com BV (https://www.Booking.com).

The department has requested cooperation from relevant state management agencies, including the Ministry of Information and Communications, the Ministry of Industry and Trade, the State Bank of Vietnam and the Ministry of Public Security, to apply appropriate management measures for the above-mentioned foreign suppliers.

The GDT reported that, to date, 120 foreign suppliers have registered, declared, and paid taxes via a portal dedicated to them, with a total amount of nearly VNĐ8.7 trillion (US$342.7 million) in 2024, a 26 per cent increase compared to the same period in 2023, and 74 per cent higher than the projected estimate, it said.

It has rolled out a range of solutions to enhance tax management for e-commerce activities, particularly cross-border transactions.

The tax authority stated that it will continue analysing the database of foreign suppliers that declare and pay taxes via the portal, as well as the database of Vietnamese organisations that withhold and remit taxes on behalf of foreign suppliers through the centralised tax management system (TMS). It will also integrate data from relevant state agencies to develop plans for targeted inspections of Vietnamese organisations withholding taxes for foreign suppliers in the country.

The GDT will also gather international insights and review major tech companies' models to advise relevant authorities, including negotiating updates to double taxation agreements to better suit digital economy business models and create a fair, competitive environment for all businesses. — VNS