Brian Jeffrey
The General Department of Taxation (GDT) reported a varied collection of foreign withholding taxes from digital service providers between 2019 and 2021. The collected amounts were nearly 1.17 trillion VND in 2019, slightly over 1.14 trillion VND in 2020, and surpassed 1.59 trillion VND in 2021.
The GDT highlighted the challenges in taxing cross-border e-commerce, as transactions are executed entirely online, complicating the tracking of income.
Moreover, foreign suppliers without a physical presence in Vietnam often avoid meeting their tax responsibilities.
In response, the GDT is implementing several strategies such as enhancing the legal framework, utilizing technology, developing databases, and improving outreach efforts.
Part of these initiatives involves creating a comprehensive Big Data system that gathers information from banks, e-wallets, online payment platforms, and international card entities.
The department is also investigating the use of advanced technologies like artificial intelligence (AI) to monitor and regulate cross-border e-commerce transactions./.VNA
