From June 1, Facebook will collect additional advertising fees to pay taxes in Vietnam

On the afternoon of May 24, on the “Business Help Center” page of Meta, the parent company of Facebook, announced the collection of an additional 5% value-added tax from partners when running ads at Facebook. Vietnam.

“From June 1, Facebook ads in Vietnam will be subject to an additional 5% value-added tax (VAT). This will affect advertisers who set Vietnam as the target country on their business address. business or personal address”, Meta info.

From June 1, 2022, Facebook will collect an additional 5% value-added tax from partners when running ads in Vietnam. Photo: Internet

Accordingly, this policy will be applied to all advertising of the platform, aimed at customers in Vietnam, regardless of corporate or individual advertisers.

In addition, Meta recommends that advertising partners add a tax ID to their payment settings, although this is optional. However, the tax code will be entered on the Facebook payment invoice. This can help them get a partial refund of VAT paid under the guidance of the General Department of Taxation.

With VAT collection, if automatic payment is selected, a tax of 5% will be charged before the ad does. As a result, users will have to pay extra for an advertising plan on the platform. If the advertiser chooses to pay manually, VAT is calculated based on the actual rate, depending on the balance in the ad account.

With VAT collection, if automatic payment is selected, a tax of 5% will be charged before the ad does. Photo: Internet

According to domestic advertisers, before paying VAT, Facebook charged a 1-3% foreign currency conversion fee for transactions in VND.

Previously, in April, Meta had an interview with the General Department of Taxation to clarify the process of registration, declaration and payment of tax for foreign contractors in Vietnam in Circular 80 (about the registration mechanism, declare and pay tax for foreign contractors).

In addition to Vietnam, starting from April and September, Meta will also add VAT to advertising costs in Cambodia and Thailand, respectively.