Navigating Luxury & Retail: Vietnam Tax & Legal Essentials

Legal Framework & Policies

By Mr. Luan Vo

Mr. Luan Vo highlighted that while FDI companies can establish operations in Vietnam, specific licensing requirements depend on the nature of their business activities. In terms of e-commerce compliance, Vietnamese businesses must either operate their own website or sell through third-party platforms.

MoIT notification is required for self-managed websites with a Vietnamese domain “.vn”, or with a foreign domain that either uses Vietnamese language or records over 100,000 transactions from Vietnam annually. Regarding promotional activities, notification or registration with the Department of Industry and Trade (DoIT) is required for programs such as lucky draws and loyalty schemes, unless the total prize value is below VND 100 million or the promotion is conducted exclusively online in some cases.

Mr. Luan Vo also emphasized that under Vietnam’s 2023 Personal Data Protection (PDP) Decree, companies must obtain user consent, implement data security measures, and notify authorities of cross-border data transfers, with penalties imposed for non-compliance.

Notable Tax Considerations & Policies

By Mr. Tai Nguyen

Mr. Tai Nguyen emphasized that invoices are mandatory for all sales, with full buyer details required for business customers, although this is not necessary for individual consumers. Furthermore, sales returns must be documented with adjusted invoices, while imported goods returned to overseas sellers should be processed promptly in order to claim duty and VAT refunds.

Foreign tourists, meanwhile, can receive an 85% VAT refund upon departure, provided that shops meet all compliance requirements. However, VAT regulations for products containing gold or gemstones remain unclear.

Moreover, intercompany services must be supported by transfer pricing documentation to ensure regulatory compliance. Lastly, businesses should maintain accurate inventory tracking and amortize renovation costs over a three-year period in accordance with tax rules.

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