Vietnam collects $78 million in tax from foreign tech giants in 2022
Vietnam collects $78 million in tax from foreign tech giants in 2022
Vietnam collected VND1.8 trillion ($78.26 million) in tax from cross-border platforms, such as Google, Meta, Netflix, and TikTok in 2022, according to the General Department of Taxation.
According to the department, in March 2022, it launched the information portal for foreign service providers. As of the end of October last year, over 40 foreign service providers had registered and declared tax on the information portal for foreign service providers.
Meta, Google, Microsoft, TikTok, Netflix, and Apple, which account for 90 per cent of revenue from e-commerce services on cross-border digital platforms, have declared and paid taxes in Vietnam, totalling tens of millions of dollars. For example, Google paid $28.8 million, Meta (Facebook) $34.5 million, and Apple with $7.56 million.
These cross-border platforms, which account for 90 per cent of revenue from e-commerce services on cross-border digital platforms, have declared and paid tax in Vietnam, totalling tens of millions of dollars. Tax revenue collected from cross-border platforms has increased thanks to the launch of the electronic information portal.
Tax revenue collected from cross-border and e-commerce platforms grew by 130 per cent on average in 2018-2021, with $52.17 million) per year.
According to the General Department of Taxation, the results show positive signs for the cooperation between the taxation authorities and foreign service providers in declaring and paying tax. It also shows the seriousness and prestige of the foreign service providers in their e-commerce trading activity in Vietnam.
Trading on e-commerce and digital platforms in Vietnam has huge potential. According to the 2022 White Book on Vietnam’s e-commerce, the B2C market is valued at $16.4 billion in 2022 and is expected to reach $39 billion by 2025, the second largest in Southeast Asia.
Reports indicate that the number of Vietnamese users buying goods via foreign websites has increased from 36 per cent to 43 per cent in 2021.
