Facebook ads in Vietnam will be subject to a 5 per cent value-added tax beginning from June 1. (Photo vtv.vn) This affects advertisers who have set Vietnam as their “Sold To” country ontheir business or personal address.
In addition to Vietnam, starting from April and September, Meta, Facebook'sparent company, will also add VAT to advertising costs in Cambodia andThailand, respectively.
Not long ago, Facebook also charged a foreign currency conversion fee of 1-3percent for transactions in Vietnamese dong.
Within the framework of Prime Minister Pham Minh Chinh's working visit to theUS on May 20, representatives of the Public Policy Department of Meta had ameeting and discussed with the Prime Minister and the Ministry of Planningand Investment.
Meta said that it would register, declare and pay foreign contractor tax inVietnam.
Previously, Meta had a meeting and discussed with the General Department ofTaxation last month to clarify the implementation of Circular 80 on themechanism of registration, declaration and payment of tax for foreigncontractors in Vietnam.
The Ministry of Finance reported that the tax authorities have collected nearly5 trillion VND (217.4 million USD) from organisations in Vietnam in recentyears.
Of which, many large enterprises have paid taxes such as Facebook paying 1.69trillion VND, Google 1.62 trillion VND, and Microsoft 576 billion VND.
Particularly, tax revenue from cross-border services reached 1.32 trillion VNDlast year, up 15.2 percent compared to 2020./.
VNA
