Frequently asked questions – Vietnam VAT
What is VAT?
VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Vietnam. VAT is a consumption tax because it is ultimately borne by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling taxable goods or services and collected from the customer. Subsequently, the supplier declares the VAT collected on sales and remits the VAT to the tax authorities.
Zoom is registered for VAT in Vietnam as a non-resident supplier of electronically supplied services. As such, Zoom is required to collect VAT on supplies to customers that are not registered for VAT in Vietnam and remit that VAT to the Vietnamese tax authorities.
If you are VAT registered in Vietnam, you should provide your Tax Identification Number to Zoom (see ‘How do I enter my Tax Identification Number?’ below for details on how to do this). If the Tax Identification Number is valid and indicates that you are registered for VAT in Vietnam, then no VAT will be charged on the supplies made to you by Zoom; however, you are responsible for bearing and reporting any taxes due to the Vietnamese tax authorities arising from Zoom’s supplies to you. If you do not have a valid Tax Identification Number or provide a Tax Identification Number that does not indicate that you are registered for VAT in Vietnam, then VAT will be charged on the supplies made to you by Zoom.
Why am I being charged VAT?
Video conferencing services and electronic communication services fall within the Vietnam tax rules that require non-resident suppliers of electronically supplied services to charge VAT on supplies to customers that are not registered for VAT in Vietnam.
As such, Zoom (as a non-resident supplier) is required to charge VAT at the applicable rate to customers that are not registered for VAT in Vietnam on the basis of Circular 80/2021/TT-BTC (“Circular 80”).
What is a Tax Identification Number?
A Tax Identification Number is a unique, 10 or 13-digit number issued by the Ministry of Finance to identify a taxpayer in Vietnam. Zoom validates Tax Identification Numbers provided against the National Business Registration Portal of Vietnam, only Tax Identification Numbers that indicate a VAT registration status will be considered as valid.
How do I enter my Tax Identification Number?
Note: Starting July 17, 2023, certain account owners and admins will notice a dedicated Plans and Billing section within their ADMIN menu.
To enter the Tax Identification Number, please follow these steps:
- Sign in to the Zoom web portal.
- In the navigation menu, click Account Management then Billing.
- Click the Billing Information tab.
- Under Sold to Contact, choose to edit the Tax Identification Number (which appears after the Sold to Contact Address field).
- Enter your Tax Identification Number.
- Click Save.
Zoom performs periodic validation checks of customer TINs to ensure that the TIN remains valid. If, during these periodic validations, it is identified that your TIN is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid TIN is provided. To provide an updated TIN refer to the above steps.
You are required to notify Zoom timely if there is any change to your VAT registration status. You are responsible for providing accurate tax information to Zoom and Zoom waives any responsibility to accept liability due to either an incomplete or an inaccurate VAT registration disclosure.
Does Zoom have a Tax Identification Number in Vietnam?
Yes, Zoom’s Vietnamese Tax Identification Number will be shown on invoices issued to you. Further, if you provide a valid Tax Identification Number to Zoom, it will be displayed on invoices issued to you.
How is Zoom determining which customers VAT applies to?
If a customer's ‘Sold To’ location is in Vietnam, and the customer has not provided a valid Tax Identification Number indicating that the customer is registered for VAT in Vietnam, Zoom will charge VAT on invoices issued to you.
This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’-address is accurate.
Are there any special exemptions or zero-rating applicable for charities or other business organizations under which VAT may not be charged?
No, where a customer in Vietnam has not provided a valid Tax Identification Number indicating that the customer is registered for VAT in Vietnam, Zoom will charge VAT on all supplies made to you. There are no specific exemptions available for specified organizations or persons that are not registered for VAT in Vietnam.
Are there any VAT obligations for me as a customer?
If you have provided a valid Tax Identification Number to Zoom and the Tax Identification Number indicates that you are registered for VAT, no VAT will be charged on the supplies made to you. However, by providing a Tax Identification Number, you declare that you are a business customer and are therefore responsible for bearing and reporting any taxes due to the Vietnamese tax authorities arising from Zoom’s supplies to you.
What if I have a Tax Identification Number and forget to enter it?
Your Tax Identification Number may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no valid Tax Identification Number is entered at the time the next invoice is issued, VAT will be charged until a valid Tax Identification Number is provided. No retrospective adjustments will be made where you did not provide your valid Tax Identification Number to Zoom.
Decision tree – My “Sold To” address is Vietnam; will I be charged VAT?
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Vietnam. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.
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