On September 29, 2021, the Vietnam Ministry of Finance released Circular 80/2021/TT-BTC guiding the implementation of the Law on Tax Administration and Government Decree 126/2020/ND-CP, which shall take effect from January 1, 2022.
For the purposes of ensuring compliance with local tax law updates and streamlining our practices in Vietnam market, TikTok Pte. Ltd. ("TikTok") proceeds with registration for Vietnam tax and becomes responsible for tax filings in Vietnam for the supply of TikTok Ads to all customers whose billing country for the TikTok Ads Manager Account is set as Vietnam.
From 01/01/2024, all purchase transactions conducted by you in Vietnam will be charged 5% Value Added Tax ("VAT") on top of the balance. We shall be solely responsible for collecting, reporting and remitting Vietnamese Value Added Tax ("VAT") on your purchases.
For your information, the standard tax rate of VAT is 5%. The tax base for tax calculation is our revenue generated from Vietnam purchases. Below is an example of tax calculation:
Account Balance | 1,000 |
VAT charge (5%) | 50 |
Total payment | 1,050 |
If you are a Tax Registered Organisation in Vietnam, we encourage you to go to your TikTok Ads Manager Account Setup to set your Tax Status as VAT Registered Business and enter your valid Tax Code into the Tax ID field. Your Tax Code will be added to your invoice. Please inform that the format of the Tax Code should be in either a 10 or 13-digit number. Kindly ensure that the Tax Code can be verified against the National Business Registration Portal of Vietnam. You will be solely responsible to ensure the information is correct and fulfilled. We will not accept to re-issue invoice in case your provided information is incorrect.
If you are not a Tax Registered Organization in Vietnam, no further action is needed from your end.
We sincerely thank you for your understanding and cooperation.
Note: This document is not treated as a tax advice in any way but rather it only informs you of how TikTok will invoice you subject to your status of tax registration based on the required documents provided to us. You are fully liable for any tax liability that you are required by law to report or withhold and pay. The Vietnamese translation of this document is for reference only and the English version of this document will prevail should there be any difference between the two versions.