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Vietnam 1.5% ecommerce tax August 2021

Marketplaces face new turnover tax to level playing field for domestic e-retailers and high streets

Vietnam has announced a 1.5% on the income of non-resident marketplaces from their income on sales to Vietnamese consumers. The aim is to level the playing field for local online and high-street merchants who must incur and charge local taxes and Value Added Tax.

Non-resident providers of digital services to Vietnamese consumers are already subject to VAT since 2020.

In the reporting requirements, marketplaces will have to report monthly on the following data:

  • Third party seller details
  • Revenues by seller
  • Goods sold

Bank accounts where funds are transferred for on platform sales

Vietnam’s online market has expanded 18% in the last year to almost US$ 20billion. It has been the fastest growing e-commerce market in Southeast Asia. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

If you need help calculating or verifying Vietnamese or global VAT / GST calculations on individual or batch transactions try VAT Calc’s Advisor and Auditor services.

Asia Pacific Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
India Jun 2016 6% Rs 2cores n/a Advertising
India Apr 2020 2% INR 20m n/a Goods and digital services sellers and facilitating marketplaces
Indonesia Mar 2020 TBC E-commerce
Laos Feb 2024 TBC Streaming; ad's; travel & hotel online
Nepal Jul 2022 2% Electronic & digital services
New Zealand Proposed 2-3% NZ$3.5m NZ$1.1bn Social media; Content sharing; Search engine; user data; Intermediation;
Pakistan Sep 2021 2% Nil Nil Withholding tax on marketplaces
Kyrgystan Jan 2022 2% Nil Nil Tax on digital services B2B and B2C
Sierra Leone Jan 2021 1.5% Digital and electronic services
Vietnam 2021 TBC 1.5% Ecommerce tax on marketplace revenues

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