- From 1 July 2025, Vietnamese hotels/resorts that withhold and pay VAT on behalf of foreign online booking platforms are asking whether a 5% direct-method rate or the 10% VAT rate applies.
- Lâm Đồng Tax Department says foreign providers using e-commerce/digital platforms to supply services to organizations or individuals in Vietnam fall under Article 9(3) of the VAT Law.
- Therefore, if the service meets the conditions in Article 9(3), the applicable VAT rate is 10%.
- The 5% rate under the direct-method provisions does not apply to these foreign platform providers as excluded in the law.
Source: baochinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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