Vietnam Banking Association recommends removing obstacles in tax deduction and payment

(NLDO) – According to the Vietnam Banking Association, the problems of commercial banks are related to deducting and paying taxes on behalf of foreign suppliers.

The Vietnam Banks Association (VNBA) has just sent a document to the Ministry of Finance and the Tax Department to propose solutions to difficulties related to paying taxes on behalf of foreign suppliers who have not registered, declared and paid taxes in Vietnam.

The bank does not participate in the transaction, so it does not know the nature of the transaction, industry or type of goods or services to calculate the correct amount of tax to be deducted.

According to feedback from commercial banks, the Tax Department only provides the name and website address of the foreign supplier. However, when customers request a money transfer, the bank only follows the order and does not need the recipient's website information. Therefore, the website information provided by the Tax Department does not help the bank accurately identify the recipient. If only relying on the name to deduct taxes, confusion may occur because many foreign companies have the same name.

In addition, the bank does not participate in the purchase and sale, so it does not know the nature of the transaction, the industry or the type of goods and services to calculate the correct amount of tax to be deducted. To avoid risks and complaints from foreign suppliers, VNBA requests the Tax Department to provide additional information such as the recipient's name, account number, and their bank to correctly identify the subject that needs to deduct tax.

VNBA also wants a regulation requiring individuals purchasing goods from foreign suppliers to determine the tax rate themselves and notify the bank for deduction. If the determination is incorrect, the individual will be held responsible. At the same time, the tax authority needs to inform foreign suppliers of this regulation to avoid disputes with banks.

VNBA also recommended considering removing the regulation requiring banks to deduct taxes in the 2019 Tax Administration Law. The reason is that from January 1, 2025, according to the new law, foreign suppliers doing business through digital platforms or other services in Vietnam must register, declare and pay taxes themselves, instead of pushing the responsibility onto banks.

Source: https://nld.com.vn/rac-roi-khau-tru-nop-thue-thay-nguoi-ban-ngan-hang-cau-cuu-cuc-thue-196250311112958118.htm