Facebook collects 5% advertising fee to pay tax in Vietnam

, Facebook collects 5% advertising fee to pay tax in Vietnam

The amount that Facebook collects from the Vietnamese partner will account for 5% of the invoice value. This money is used to fulfill its tax obligations.

Recently, on the website of Meta – the parent company of the social network Facebook has posted a notice about tax collection from Vietnamese advertisers.

Accordingly, from June 1, Facebook ads in Vietnam will be subject to an additional 5% value-added tax (VAT). An additional 5% tax will be applied to all advertising on the platform, aimed at customers in Vietnam, regardless of corporate or individual advertisers.

, Facebook collects 5% advertising fee to pay tax in Vietnam

, Facebook collects 5% advertising fee to pay tax in Vietnam

Facebook requires this social network’s advertising partners to add a tax code to the payment settings. The tax code will be entered on the Facebook payment invoice. The advertiser can recover part of the cost if it is paid to the tax office.

According to Facebook, VAT will be collected in two ways. With the automatic payment option, a 5% tax will be charged before the ad goes live. Users will have to pay extra for an advertising plan on the platform.

If an advertiser chooses to pay manually, VAT is calculated based on the actual rate, depending on the balance in the ad account, Facebook said.

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Just a few days earlier, in an official announcement, Meta once confirmed that it would register, declare and pay Foreign Contractor Tax in Vietnam.

Specifically, Meta had a meeting and discussed with the General Department of Taxation in April 2022 to clarify the implementation of Circular 80 (about the mechanism of registration, declaration and payment of tax for foreign contractors) in Viet Nam.

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Meta commits to register, declare and pay Foreign Contractor Tax in accordance with the Circular. This unit will also work and provide necessary information to its advertisers and customers to ensure compliance with tax declaration and payment.

It can be seen that the move just made is a specific step of Meta to implement the above plan. This has shown Facebook’s more cooperative attitude after many years of doing business in Vietnam without fulfilling its tax obligations.

@ Vietnamnet

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