Digital boom pays off in billions for State budget

New tax management policies have created a more transparent and business-friendly legal framework, while enabling authorities to better track cash flow and minimise revenue loss.

Việt Nam is considered one of the leading countries in ASEAN in implementing tax collection for foreign suppliers. (Photo: cafef.vn)
Việt Nam is considered one of the leading countries in ASEAN in implementing tax collection for foreign suppliers. (Photo: cafef.vn)

Hanoi (VNS/VNA) – Vietnam’s taxman is cashing in on the digital boom, with nearly 135 trillion VND (5 billion USD) collected from e-commerce and digital economy players in the first eight months of 2025 – a 63% surge year-on-year, according to the Department of Taxation.

Of this total, over 121 trillion VND came from 93,000 domestic organisations, 8.71 trillion VND from 170 foreign suppliers, and nearly 1.78 trillion VND from 918,000 households and individuals. A further 156,000 households and individuals declared and paid 2.04 trillion VND via the Electronic Information Portal.

Since its launch in 2022, the portal has helped foreign suppliers — previously seen as difficult to manage due to their online-only operations and lack of legal presence in Vietnam — register, declare and pay nearly 26.15 trillion VND in taxes.

The numbers reflect a striking shift in tax compliance: in 2022, foreign suppliers contributed 1.85 trillion VND; by 2023, that had quadrupled to 6.89 trillion VND. The upward trend continued in 2024 with 8.69 trillion VND, and in just the first eight months of 2025, the figure surpassed 8.71 trillion VND — a 40% increase over the same period last year.

The breakthrough highlights not only the growing volume of cross-border digital transactions, but also the success of Vietnam’s online tax registration and payment system for foreign suppliers.

Alongside this, new tax management policies have created a more transparent and business-friendly legal framework, while enabling authorities to better track cash flow and minimise revenue loss.

Vietnam is regarded as one of ASEAN’s frontrunners in taxing foreign digital service providers. Under recent regulations, the value-added tax (VAT) for these suppliers doubled from 5% to 10% as of July 1, 2025, while corporate income tax remains at 5%. This mechanism has contributed significantly to budget revenues from cross-border business.

Tightened enforcement is also in effect. In the first eight months of 2025, tax authorities collected more than 759 billion VND in arrears from 2,734 enterprises and 872 households and individual businesses, according to the latest figures from the Taxation Department./.

VNA

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