According to the GDT, the collection of foreign withholding tax from companies offering cross-border digital services fluctuated over the 2019-21 period, with revenues recorded at close to VNĐ1.17 trillionin 2019, over VNĐ1.14 trillionin 2020, and more than VNĐ1.59 trillionin 2021.
The general department acknowledged ongoing challenges to managing taxes on cross-border e-commerce. Transactions in this sector are conducted entirely online and reach end consumers directly, making it difficult to comprehensively track revenue. Additionally, some foreign suppliers without a permanent establishment in Việt Namcan easily evade their tax obligations.
To address these issues, the GDT has been implementing various measures, including improving the legal framework, applying technology, enhancing the databaseand boosting communications.
Efforts have focused on building a Big Data repository using information from banks, e-wallets, online payment service providersand international card organisations. The department is also exploring the application of advanced technologies such as artificial intelligence (AI) to identify and monitor cross-border e-commerce payments.
