VI According to regulations, what is a foreign supplier with no permanent establishment in Vietnam that conducts e-commerce business called? Where do foreign suppliers directly declare taxes? Through today’s article, let’s learn more about this issue with Pham Consult!
What is a foreign supplier with no permanent establishment in Vietnam that conducts e-commerce business called?
Pursuant to Clause 1, Article 73 of Circular 80/2021/TT-BTC, the following provisions are provided:
Organizations and individuals involved in tax management for e-commerce business activities, digital platform-based business and other services of foreign suppliers without a permanent establishment in Vietnam
1. Foreign suppliers without a permanent establishment in Vietnam that conduct e-commerce business activities, digital platform-based business and other services with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers).
2. Organizations and individuals in Vietnam that purchase goods and services from foreign suppliers.
3. Organizations and tax agents operating under Vietnamese law authorized by foreign suppliers to carry out tax registration, tax declaration and tax payment in Vietnam.
4. Commercial banks, payment intermediary service providers and organizations and individuals have rights and obligations related to e-commerce business activities, digital platform-based business activities and other services of foreign suppliers.
Accordingly, foreign suppliers without a permanent establishment in Vietnam have e-commerce business activities, digital platform-based business activities and other services with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers).
Where do foreign suppliers make direct tax declarations?
Pursuant to Clause 1, Article 77 of Circular 80/2021/TT-BTC, there are regulations on tax declaration and direct tax calculation of foreign suppliers, including:
Accordingly, foreign suppliers shall declare tax directly at the General Department of Taxation’s Electronic Information Portal, use the electronic transaction authentication code issued by the tax authority through the General Department of Taxation’s Electronic Information Portal and send electronic tax declaration dossiers to the direct tax authority, as follows:
– Tax declaration for foreign suppliers is the type of tax declared and paid quarterly.
– Electronic tax declaration according to form No. 02/NCCNN issued with Appendix I of Circular 80/2021/TT-BTC.
– Foreign suppliers pay value added tax and corporate income tax according to the rate method calculated on revenue.
+ Revenue subject to value added tax is the revenue received by foreign suppliers.
+ Revenue subject to corporate income tax is the revenue received by the foreign supplier.
– The percentage for calculating value added tax on revenue is prescribed in Point b, Clause 2, Article 8, Decree 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax 2008.
– The percentage for calculating corporate income tax on revenue is prescribed in Clause 3, Article 11, Decree 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Law on Corporate Income Tax 2008.
How should a foreign supplier who receives the identification code for the amount payable to the state budget do?
Pursuant to Article 78 of Circular 80/2021/TT-BTC, the following provisions are provided:
Direct tax payment by overseas suppliers
1. For overseas suppliers, after receiving the identification code of the state budget payable notified by the directly managing tax authority, the overseas supplier shall pay tax in freely convertible foreign currency to the state budget revenue account according to the notification on the General Department of Taxation’s Electronic Information Portal, ensuring that the identification code of the state budget payable sent by the directly managing tax authority is correctly recorded.
2. In case the overseas supplier pays more than the tax payable according to the declaration, the overseas supplier shall be entitled to offset the tax payable in the next tax period.
Accordingly, for foreign suppliers, after receiving the identification code of the state budget payable amount notified by the directly managing tax authority, the foreign supplier shall pay tax in freely convertible foreign currency to the state budget revenue account according to the notification on the General Department of Taxation’s electronic information portal, ensuring that the correct identification code of the state budget payable amount sent by the directly managing tax authority is recorded.
Comments
