120 foreign suppliers have registered and paid taxes of over 8.68 trillion Vietnamese dong (340.6 million US dollars) through the General Department of Taxation’s electronic portal this year.
The performance exceeded expectations, representing 74% of the goal set for the year and demonstrating a 26% improvement from the previous year.
According to the department, foreign withholding tax collected from international businesses supplying cross-border digital services varied over the 2019-2021 period, totalling approximately USD 50.9 billion in 2019, around USD 49.5 billion in 2020, and over USD 69 billion in 2021.
The tax department pointed out that there are ongoing issues related to tax management for cross-border virtual commerce. The nature of this industry, which conducts solely online transactions and interacts directly with end consumers, presents significant difficulties in monitoring and tracking income comprehensively. Furthermore, foreign suppliers not having a permanent presence in Vietnam can easily sidestep their tax responsibilities.
In order to address these concerns, the department has been implementing several measures, among which are refining the legal structure, integrating technology, expanding the database and enhancing communication efforts.
A focus has been placed on creating a large dataset repository by incorporating data from banks, e-wallets, online payment platforms, and international credit card associations. The department is additionally investigating the use of cutting-edge technologies like AI to detect and supervise cross-border e-commerce transactions.
