Vietnam: Piloting the use of cyber currency based on blockchain technology

LEGAL UPDATES

Vietnam: Piloting the use of cyber currency based on blockchain technology

1. Marketplace platforms must provide information of sellers to tax authorities 

On 1st June 2021, the Ministry of Finance issued Circular 40/2021/TT-BTC guiding the value-added tax (VAT), personal income tax (PIT) and tax management for business households and individual doing business. According to the Circular no 40/2021/TT-BTC, from 1st August 2021, marketplace platforms are responsible for providing information to tax authorities in electronic form.

Accordingly, the organization that is the owner of the marketplace platform shall declare and pay tax on behalf of individuals doing business on the platform according to the schedule of the tax authority. During the time when it is not possible to declare tax on behalf of individuals, the marketplace’s owner must provide information related to the activities of individuals doing business on the platform at the request of the tax authorities, including: name; personal identification number or identity card number or citizen identification number or passport number; tax code; address; email; phone number; goods and services provided on the platform; revenue; seller’s bank account and other relevant information. 

From 1st July 2022, marketplace platforms will also comply with regulations on e-invoices as prescribed in the Law on Tax Administration and Decree No. 123/2020/ND-CP and Circulars of the Ministry of Finance.

The Circular 40/2021/TT-BTC takes effect from 1st August 2021. 

2. The Government requests the State Bank of Vietnam to research and pilot the use of cyber currency based on blockchain technology

On June 15th, 2021, the Government issued Decision 942/QD-TTg on the Strategy for E-Government Development towards Digital Government in the period 2021-2025.

Particularly, the Prime Minister assigned the State Bank to assume the prime responsibility for researching, building and piloting the use of cyber currency based on blockchain technology. The implementation period is from 2021 to 2023. This requirement is expected to create significant changes in the legal framework for the development of cyber currency in the near future.

Meanwhile, the Government also assigns relevant authorities to research, develop other core technologies as QR code, artificial intelligence (AI), blockchain and virtual/augmented reality (VR/AR), big data facilitating the deployment of advanced digital technologies in Digital Government. 

Decision 942/QD-TTg takes effect from the signing date.

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