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Vietnam moves to delay e-commerce tax amid COVID chaos

Shopee and Lazada would collect tax for merchants under new plan

Vietnam could delay its planned e-commerce tax until next year as the country grapples with a serious outbreak of COVID-19.

HO CHI MINH CITY -- Vietnam has moved to delay an online tax that is facing resistance from e-commerce companies just days before it was supposed to take effect as the country grapples with a worsening COVID-19 outbreak.

"The Finance Ministry is submitting to the government the postponement of the implementation of Circular 40 on taxes to create more convenience for taxpayers," the ministry said on its website on Sunday night. The circular would require businesses like Shopee, the e-commerce unit of Singapore's Sea, and Lazada, owned by Alibaba Group Holding, to withhold taxes for merchants on their platforms each time a sale is made.

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