How to Set Up Your Tax ID in Facebook Ads

Starting June 1, 2022, Facebook will charge 5% value-added tax (VAT), also known as foreign contractor tax, whether you are a business or an individual advertising on its platform in Vietnam.

Facebook does not require you to provide a tax ID to run ads. However, Facebook will add 5% VAT to your payment. Facebook will display your tax ID on the e-invoice. Optimus therefore recommends providing your tax ID to make the expense deductible without having to declare and pay foreign contractor tax as before.

Here is how to confirm that you are a business, organization or individual registered for VAT in Vietnam and add your tax ID:

Step 1: In your ad account, go to Ad account settings >> Under Business info, click Edit

Step 2: Check "Yes, I am buying ads for business purpose" to confirm that you are a business, organization or household business registered for VAT in Vietnam. If you are an individual taxpayer, choose the other box.

Step 3: Enter your business details and tax ID in your ad account. If you are an agency representing businesses, enter the correct details and tax ID for each customer. Avoid issuing invoices with the wrong details, which will make tax deductions difficult later.

Optimus, when providing Facebook advertising services to customers, always clearly explains the procedures to help them make expenses deductible and limit unnecessary taxes and fees.

*Information on the 5% VAT charge for Facebook ads: https://www.facebook.com/business/help/938907633499274