Vietnam maintains a strict tax management system for non-resident e-commerce and digital platform providers. Under the current regulations, in particular Circular No. 80/2021/TT-BTC, foreign suppliers without a permanent establishment in Vietnam are allowed to directly fulfill their tax obligations without the involvement of Vietnamese customers.

For overseas suppliers earning revenue in Vietnam through e-commerce and digital platforms, a thorough understanding of these requirements, from electronic registration to applicable withholding mechanisms, is essential to ensure compliance, reduce the risk of administrative penalties, and proactively manage tax obligations in Vietnam.

Main compliance entity

The regulation identifies four key stakeholders in the digital tax ecosystem:

• Overseas suppliers: Non-resident suppliers providing digital services and e-commerce products to organizations and individuals in Vietnam.
• Vietnamese buyers: Recipient of goods or services (both B2B and B2C).
• Authorized tax agent: A Vietnam-based legal entity or tax agent authorized by an overseas supplier to perform local tax procedures.
• Financial intermediary: Commercial banks and payment service providers responsible for withholding tax in certain scenarios.

Registration and electronic tax transactions

To streamline compliance, the General Directorate of Taxation (GDT) is centralizing procedures through a dedicated window. electronic portal.

• initial rRegistration: Eligible Overseas Suppliers (OS) must register for an electronic tax transaction account and Taxpayer Identification Number (TIN). This process requires a valid email address for all official communications.
• digital becertification: All transactions, including registrations and applications, are authenticated by a transaction confirmation code issued by the GDT Portal to your registered email address.

Online registration procedure for overseas suppliers in Vietnam

Foreign suppliers seeking to enter or maintain a presence in Vietnam’s digital market must follow a specific e-registration workflow. This process is centralized through a dedicated GDT portal, facilitating cross-border compliance without the need for physical presence.

Mandatory electronic tax transaction registration

To start tax activities in Vietnam, overseas suppliers must register for electronic trading at the same time as the initial tax registration. To streamline compliance, GDT centralizes procedures through a dedicated organization. electronic portal.

This digital-first approach requires the OS to meet two basic technical criteria:

• Reliable internet access: Ability to access and operate through GDT’s e-portal system.
• Official email account: A designated permanent email address used only for official communications, notifications and transaction confirmations from the Vietnam Tax Authority. This email address may be updated as needed.

Issuance of tax identification number

TIN serves as the main identifier for all regulatory filings in Vietnam. Whether a foreign supplier registers directly or through an authorized local representative, registration must be completed using Form No. 01/NCCNN according to the guidelines set out in Circular 80.

Upon successful initial registration via the portal, GDT will send the account credentials and assigned TIN directly to the Supplier’s registered email address. This account will be your gateway for all subsequent application and payment activity.

Direct tax return and payment by overseas suppliers

Direct tax registration and data update protocols

International suppliers are responsible for maintaining accurate registration data. The regulatory framework specifies the exact format required for both initial registration and subsequent changes.

• beginning-tI rRegistration: Suppliers must submit Form No. 01/NCCNN (as specified in Annex I of Circular 80) via the e-portal.
• Under change Iinformation: Any changes to the supplier’s corporate details or contact information must be updated using Form No. 01-1/NCCNN.
• certification rRequirements: To ensure security and data integrity, international suppliers must authenticate each registration or amended return using a transaction verification code issued by the tax authority via the e-portal.

Tax declaration and payment obligations

International suppliers must:

• Register and submit your tax return electronically through GDT’s e-portal.
• Use the transaction authorization code issued by the controlling tax authority.
• Submit your electronic tax return directly to the supervising tax authority.
• Once you have filed your tax return, please follow the guidance issued by the tax authorities to make your payment.

The main compliance requirements are:

• Filing frequency: quarterly
• Tax return form: Form No. 02/NCCNN (issued under Appendix I of Circular 80)
• How to calculate tax:
  • Value added tax (VAT) and corporate income tax (CIT) are calculated using a deemed percentage of gross revenue.
  • Revenue subject to both VAT and CIT is the total revenue received by the overseas supplier.

The applicable percentage is determined in accordance with the prevailing VAT and CIT regulations. For example, the tax rates applicable to digital services are 10 percent VAT and 5 percent CIT.

If an error is discovered after submission, the foreign supplier must file an adjustment return using Form No. 02/NCCNN.

To help overseas suppliers understand and fulfill their tax obligations voluntarily, tax forms are provided in bilingual format and tax payments can be made in multiple currencies, not just VND.

Determination of Vietnam-derived revenue

To determine whether a transaction occurred in Vietnam for tax reporting purposes, foreign suppliers must rely on specified identification criteria.

Trading decision rules

To confirm that a transaction occurred in Vietnam:

1. International suppliers must use two consistent data points:
   • One payment-related metric. and
   • There is one indicator related to residence or access.
2. If payment information is unavailable or inconsistent, suppliers may rely on:
   • One livability indicator. and
   • Unless contradictory, there is only one access metric.

Authentication, payment codes, and record keeping

• Foreign suppliers must use electronic transaction authorization codes issued by tax authorities when filing or adjusting returns.
• After submission, the tax authority will issue a national budget payment identification number to facilitate tax payment.
• Suppliers are responsible for maintaining all information used to determine transactions of Vietnam origin for inspection and audit purposes in accordance with the law on tax administration.

Double Taxation Agreement (DTA)

If the overseas supplier resides in a jurisdiction that has concluded a tax treaty with Vietnam, the procedure for tax exemption or reduction shall be carried out in accordance with Article 62 of Circular 80 and applicable double taxation agreements.

Please note that treaty relief applies only to the CIT portion.

Authorization and representation

International suppliers may choose to allow a local tax agent to manage their returns.

• notification: In the case of a switch from direct filing to agent, the OS must notify TD at least five business days before the agreement takes effect.
• Compliance responsibilities: The authorized representative is responsible for the accuracy of the declaration based on the documentation provided by the OS.

Enforcement: Local withholding mechanisms

If a foreign supplier fails to register or pay taxes, TD shifts the burden of compliance to the local party.

B2B trading

Vietnamese organizations purchasing from a non-compliant OS will be required to withhold and remit their own taxes based on current tax laws.

B2C transactions (obligations of commercial banks)

For private buyers, commercial banks and payment intermediaries are responsible for:

• Withholding and remittance: Remit taxes by the 20th of each month for suppliers on the GDT “non-compliant” list.
• Tracking and reporting: In cases where withholding tax is not technically possible (e.g. certain card transactions), banks are required to report the transaction volume to the GDT by the 10th of each month.

Key points for business

Foreign suppliers that derive income from e-commerce and digital platforms in Vietnam should consider taking advantage of the common regulatory framework that allows them to register, declare and pay direct taxes in Vietnam. This mechanism allows overseas suppliers to manage and fulfill their tax obligations independently, without relying on Vietnamese customers or intermediaries.

Adopting this approach will strengthen overall tax governance, strengthen compliance oversight, reduce exposure to risks arising from potential non-compliance by Vietnamese counterparties, and minimize the need for client involvement in the event of future tax audits or audits.