Uber, the company that uses a handphone application to run freelance taxi services around the world, has been ordered by Vietnam's Ministry of Finance tax department to pay its legally required levy, or face prosecution if it continues to refuse.
Uber has operated in Hanoi and HCM City since June 2014.
Bui Van Nam, head of the general taxation department, said that Uber operates an e-commerce service in Vietnam, and therefore must pay tax on revenue.
Nam said the department is gathering advice, and will work with banks to access data on the interweb "cloud", which Uber has been using to avoid accounting transparency.
Tran Thi Le Nga, deputy head of MVM City's taxation agency, told a media conference the agency had repeatedly asked Uber to fulfill its tax obligations -- 3% in added value tax and 2% in corporate income tax -- but got no response.
She said Vietnam had gone out of its way to offer Uber ways of sorting out the issue.
Nga said if the company remains silent after Tet, the taxation agency will impose penalties and fines.
Uber has some 4,000 cars operating in HCM City, under the aegis of the parent company in the Netherlands, Uber B.V.
Uber Vietnam is registered as a marketing firm for the car-grabbing service, where users call the app with their location and destination, the nearest driver responds, and fares are payed by credit or debit card. The company takes a commission and credits the driver's account with the balance. It does not cover insurance. Nor does it have to comply with regulations governing the commercial transport industry.
It has attracted international attention because Uber challenges large-fleet taxi companies by offering fast collection and lower fares, but it has come under attach because its drivers are private-car owners, often moonlighting from other jobs and not subject to the strict scrutiny of transport authorities.
Uber attracts headlines when its drivers assault passengers, but it maintains it is just a computer app company, and bears no responsibility for the actions of drivers using its service.
Uber has operated in Hanoi and HCM City since June 2014.