The Vietnamese government has ordered Uber to pay 3% VAT on its taxi services. It will also be required to pay 2% corporation tax. The Finance Ministry concluded that Uber’s Dutch entity was acting as a non-resident trader liable to tax on local supplies.
In addition, Uber taxi drivers are required to pay 3% VAT and 1.5% income tax.
Uber services are paid for by credit card in Vietnam. Uber retains 20% of the taxi fares it collects. The Finance Ministry has agreed to allow Uber to settle the VAT and income due by its drivers directly.