Marketplaces face new turnover tax to level playing field for domestic e-retailers and high streets
Vietnam has announced a 1.5% on the income of non-resident marketplaces from their income on sales to Vietnamese consumers. The aim is to level the playing field for local online and high-street merchants who must incur and charge local taxes and Value Added Tax.
Non-resident providers of digital services to Vietnamese consumers are already subject to VAT since 2020.
In the reporting requirements, marketplaces will have to report monthly on the following data:
- Third party seller details
- Revenues by seller
- Goods sold
Bank accounts where funds are transferred for on platform sales
Vietnam’s online market has expanded 18% in the last year to almost US$ 20billion. It has been the fastest growing e-commerce market in Southeast Asia. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
If you need help calculating or verifying Vietnamese or global VAT / GST calculations on individual or batch transactions try VAT Calc’s Advisor and Auditor services.
Asia Pacific Digital Services Taxes (DST)
| Country | Status | Rate | Annual sales threshold | Scope | |
| In-country income | Global income | ||||
| India | Jun 2016 | 6% | Rs 2cores | n/a | Advertising |
| India | Apr 2020 | 2% | INR 20m | n/a | Goods and digital services |
| Indonesia | Mar 2020 | TBC | E-commerce | ||
| Laos | Feb 2024 | TBC | Streaming; ad's; travel & hotel online | ||
| Nepal | Jul 2022 | 2% | NPR 2m | Electronic & digital services | |
| New Zealand | Jan 2025 | 3% | NZ$3.5m | NZ$1.1bn | Social media; Content sharing; Search engine; user data; Intermediation; |
| Pakistan | Sep 2021 | 2% | Nil | Nil | Withholding tax on marketplaces |
| Kyrgystan | Jan 2022 | 2% | Nil | Nil | Tax on digital services B2B and B2C |
| Taiwan | Jan 2017 | WHT Digital and electronic services | |||
| Vietnam | Jan 2021 | 1.5% | Ecommerce tax WHT | ||
