According to a source from the General Department of Taxation, on September 4, 2024, Elementary Innovation Pte. Ltd (owner and operator of the Temu e-commerce platform in Vietnam) registered for tax through the Electronic Information Portal for Foreign Suppliers (NCCNN) of the General Department of Taxation, and was granted tax code 9000001289.

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The owner and operator of the Temu e-commerce platform in Vietnam has registered for tax with the General Department of Taxation. Photo: Thach Thao

Circular No. 80/2021/TT-BTC stipulates that NCCNNs must declare and pay taxes quarterly.

Accordingly, Temu will start submitting tax declarations from the third quarter of 2024 (the deadline for tax declaration for the third quarter of 2024 is October 31, 2024), declaring revenue from the time it starts operating in Vietnam if it is licensed to operate by the state management agency. It is expected that in October 2024, Temu will generate taxable revenue and will declare revenue in the fourth quarter of 2024 tax declaration (the deadline for submission is January 31, 2025).

The General Department of Taxation said it will closely monitor Temu's revenue declaration to ensure correct and full collection according to regulations.

Recently, cross-border e-commerce platforms such as Temu, Shein, 1688... have conducted business activities in Vietnam.

According to the provisions of the Law on Tax Administration and Circular No. 80/2021/TT-BTC, managers of e-commerce platforms Temu, 1688, Amazon... are responsible for registering, self-calculating, self-declaring, and self-paying taxes directly through the Electronic Information Portal for NCCNN (operated by the General Department of Taxation since 2022).

If incorrect revenue declaration is detected, the tax authority will compare data to determine revenue, request fulfillment of obligations, and conduct inspections and checks according to regulations if there are signs of fraud or tax evasion.

For foreign-invested enterprises that generate revenue in Vietnam but have not yet registered for tax, tax authorities have been reviewing and taking appropriate measures to ensure effective tax management for e-commerce and digital platform business activities.

Faced with the phenomenon that some foreign-invested enterprises use the excuse of having a "permanent establishment" through the establishment of representative offices in Vietnam to not fully perform their tax obligations through the Electronic Information Portal for Foreign-invested Enterprises, the General Department of Taxation has reported to the Government to propose amending the provisions in Article 42 of the Law on Tax Administration No. 38/2019/QH14 to suit the actual occurrence of foreign-invested enterprises in Vietnam.

The General Department of Taxation has been and is continuing to assess the practical situation of tax management for foreign-invested enterprises and refer to international experience to continue to perfect the draft Law on Tax Management, Law on Value Added Tax, Law on Corporate Income Tax, Decree amending and supplementing Decree No. 123/ND-CP on invoices... to ensure effective tax management, correct and sufficient tax collection for foreign-invested enterprises when doing business in Vietnam.