Meta, the parent of Facebook, will charge a 5% value-added tax on all advertisements in Vietnam starting June 1.
The move followed a Meta executives meeting with Vietnamese Prime Minister Pham Minh Chinh during his working visit to the U.S. last week. Meta would register and pay tax as a foreign contractor doing business in Vietnam, they told the premier.
Meta representatives in April this year worked with Vietnam’s General Department of Taxation to master how to register and pay tax as a foreign contractor.
According to the Ministry of Finance, Vietnam has in recent years taxed cross-border platforms like Facebook, Google, and Microsoft a total of almost VND5 trillion ($215.6 million). In 2021 alone, the figure was VND1,317 billion (nearly $56.8 million), up 15.2% on the previous year.