Agoda, AirBnB, Booking and Paypal do not have a permanent establishment in Vietnam, but generate income from providing services to Vietnamese consumers. Therefore, these suppliers are considered a foreign contractor, according to Circular 103/2014. They must pay value added tax (VAT), corporate income tax at a rate calculated on revenue.
However, currently, the four units mentioned above are foreign suppliers that have not registered, declared, and paid taxes in Vietnam. The Tax Department requests the State Bank and the Ministries of Information and Communications, Industry and Trade, and Public Security to coordinate and take appropriate management measures for the four suppliers.
In order to collect taxes from these 4 suppliers, the General Department of Taxation has issued Official Dispatch 6369 to the headquarters of 100 banks and payment intermediaries, requesting them to declare and pay taxes on behalf of Agoda, AirBnB, Booking, and Paypal according to the provisions of the Law on Tax Administration.
In fact, these providers have been operating in Vietnam for many years. Among them, Agoda and Booking are online travel agencies, providing hotel booking services, airline tickets, tours and other related products. PayPal, providing online payment services and processing e-commerce transactions. AirBnB is a service that connects people who need to rent a house with people who need to rent a house.
The General Department of Taxation has officially launched an electronic information portal since March 2022 for foreign suppliers to declare and pay taxes. Up to now, 123 foreign suppliers have registered for tax through this electronic information portal and the total accumulated payment to date is about 20,000 billion VND.
In 2024, the amount paid is 8,687 billion VND. Of which, the Meta group (Facebook), Google, Microsoft, TikTok, Netflix, Apple... holds about 90% of the market share of cross-border e-commerce service revenue in Vietnam.
