There has been a lot of controversy about cross-border digital commerce, specifically how and where it should be taxed. New technologies have made it possible for business transactions to go beyond traditional limitations.
The digital economy plays an increasingly significant role around the world and Vietnam is no exception. The country will continue to benefit from these new developments in many ways.
One question that has come up in almost every country is the real or perceived loss of tax revenue from e-commerce companies. Both tax authorities and business players in this sector face a real challenge: how to create a business environment and tax mechanism that balance economic growth and tax revenue.
This is an emerging area of international tax law. It is not simple, and before law makers leap to simple but risky conclusions, they should proceed carefully to make sure not to damage one of the country’s key economic drivers – tourism – by cutting off the web-based services that bring tourists to the country.
Fred Burke and Nguyen Thanh Vinh from law firm Baker & McKenzie delves into this issue in a column for VietNamNet Bridge.