From June 1, Facebook customers will have to pay an additional 5% value added tax (VAT) when running ads in Vietnam.
This content has just been officially announced on the “Business Help Center” page of Meta – the parent company of Facebook. The above policy is applied to customers who set Vietnam as the target country to run ads.
“VAT is added whenever you’re charged for your ads, regardless of whether you’re buying Facebook ads for business or personal purposes,” the announcement states.
The company recommends that customers add a Vietnamese tax code in their payment settings, although it’s not required to start running ads on Facebook. When you have registered for VAT and provided a tax code, the information will be displayed on the customer’s advertising receipt. This can help them get a partial refund of VAT paid under the guidance of the General Department of Taxation.
However, Facebook notes that the company is unable to advise advertisers further on tax matters. “If you have tax questions, we recommend that you contact your tax advisor or local tax authority,” the notice read.
On May 20, within the framework of Prime Minister Pham Minh Chinh’s working visit to the US, representatives of the Public Policy Department of Meta had a meeting and discussed with the Prime Minister, the Ministry of Planning and Investment. . Meta said that it will register, declare and pay tax on foreign contractors in Vietnam.
Previously, in April, Meta had a meeting and discussed with the General Department of Taxation to clarify the implementation of Circular 80 (about the mechanism of registration, declaration and payment of tax for foreign contractors) in Vietnam. .
According to the Ministry of Finance, the tax industry in recent years has collected nearly 5,000 billion VND through organizations in Vietnam (tax paid on behalf of foreign contractors).
In which, many large enterprises have paid taxes such as Facebook paying 1,694 billion VND, Google paying 1,618 billion VND, Microsoft paying 576 billion VND. Particularly in 2021, tax revenue from cross-border services will reach VND 1,317 billion, up 15.2% compared to 2020.