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.
Asia Pacific Digital Services Taxes (DST)
|Annual sales threshold
|Goods and digital services
|Streaming; ad's; travel & hotel online
|Electronic & digital services
|Social media; Content sharing; Search engine; user data; Intermediation;
|Withholding tax on marketplaces
|Tax on digital services B2B and B2C
|WHT Digital and electronic services
|Ecommerce tax WHT