Facebook to charge an additional 5% tax on advertisers in Vietnam
Facebook will charge a five percent value added tax on all advertisements in Vietnam starting from June 1, its parent company Meta announced on its website on Tuesday.
The move was made after the company pledged to Prime Minister Pham Minh Chinh that they would register and pay tax as a foreign contractor doing business in Vietnam.
Before VAT, Facebook collected a fee of between 1-3 percent from advertisers that pay in Vietnamese Dong.
Vietnamese authorities have been calling on tech giants operating in the countries including Meta and Google, which account for around 70 percent of the online advertisement market, to pay tax.
Earlier in a National Assembly Q&A session at the NA in March, Minister of Finance Ho Duc Phoc said that the local taxation department had collected nearly VND5 trillion (USD 217.40 million) from cross-border platforms between 2018-2021. Facebook has so far paid VND 1.69 trillion and Google VND1.62 trillion in taxes.
The move was made after the company pledged to Prime Minister Pham Minh Chinh that they would register and pay tax as a foreign contractor doing business in Vietnam.
Before VAT, Facebook collected a fee of between 1-3 percent from advertisers that pay in Vietnamese Dong.
Vietnamese authorities have been calling on tech giants operating in the countries including Meta and Google, which account for around 70 percent of the online advertisement market, to pay tax.
Earlier in a National Assembly Q&A session at the NA in March, Minister of Finance Ho Duc Phoc said that the local taxation department had collected nearly VND5 trillion (USD 217.40 million) from cross-border platforms between 2018-2021. Facebook has so far paid VND 1.69 trillion and Google VND1.62 trillion in taxes.
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