Vietnam taxman suggests banks pay taxes on behalf of Agoda, AirBnB, Booking, Paypal
Vietnam taxman suggests banks pay taxes on behalf of Agoda, AirBnB, Booking, Paypal
As foreign service providers Agoda, Airbnb, Booking, and Paypal have yet to register for tax payments in Vietnam, the General Department of Taxation has asked 100 local banks and payment intermediaries to declare and pay taxes on their behalf.
A representative from the General Department of Taxation told Tuoi Tre (Youth) newspaper on Wednesday that Agoda International Pte. Ltd, AirBnB Ireland Unlimited, Booking.com BV, and PayPal Pte. Ltd have yet to register for tax payments in Vietnam despite the department’s attempts.
Agoda, AirBnB, and Booking are online travel agencies which provide hotel bookings, flight tickets, tours, insurance, and other related products, while PayPal offers online transaction and payment processing solutions.
According to tax authorities, the four entities have been operating in Vietnam for over a decade, generating revenues in the trillions of Vietnamese dong. (VND1 trillion = US$39.4 million)
Tax authorities noted that the tax declaration and payment process is currently favorable in Vietnam.
The General Department of Taxation put into use a portal enabling foreign suppliers to declare and pay taxes online to Vietnam in March 2022.
After more than two years, 120 global suppliers, including Google, Meta, Microsoft, TikTok, Netflix, and Apple, have declared and paid taxes via the portal for their revenue generated in Vietnam.
Foreign suppliers paid VND8.687 trillion ($341.8 million) to Vietnam via the portal in 2024, up 26 percent over 2023.
The General Department of Taxation required tax authorities at all levels to continue promoting digital transformation, applying information technology, and enhancing the efficiency of tax management, especially on taxing foreign suppliers and traders on e-commerce platforms.
