Vietnam Uber to pay VAT

Fri 16th Sep 2016

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.