Grab Bike drivers protest against the new VAT regulation

Several Grab Bike drivers have turned off their devices and their apps on Dec. 7th in order to protest the new VAT regulation applying on their income.

Grab Bike drivers living in Hanoi have turned off their phones and held a meeting in order to protest against the new VAT regulation that Grab has applied on them. In the other word, Grab Bike drivers now will have to pay a higher deduction fee (from 20% increased to 27.2%).

Most drivers believed that this deduction fee is much higher than they have expected, and they are afraid that this will affect their income.

During afternoon of Dec. 7th, several Grab Bike drivers have summoned in front of Grab Vietnam office on Duy Tan avenue (Hanoi). Some drivers even held a livestream in order to protest against Grab and its new deduction regulation.

The group of drivers then moved around other avenues of Hanoi to gather the attention and create a notification against Grab. These drivers went through Cau Giay, Kim Ma, Lang, and Nguyen Chi Thanh avenue. Grab Bike drivers continued their protests when they went through Hoan Kiem lake, but the protest finally has been stopped by the police.

Some drivers still summoned at the Grab office on Duy Tan avenue and the other gathered at the center of Hanoi. Grab Vietnam denied to give any further comments.

Just two days ago, drivers only had to pay the deduction fee of 20% per drive, and they could received 80% of the revenue from the drive. For driver whose income is more than 100 million VND per year, they would have to pay 1.5% of personal income tax and 3% of VAT.

However, after the 126 Bill was officially acknowledged, Grab has increased their deduction fee in order to adapt with the new VAT percentage on their service. According to Grab, they have to pay 10% of VAT for each drive in stead of paying 10% of VAT for the total of drives that the service has offered in the period of 1 year.

In order to face the challenge, Grab has increased their service fees and increased the deduction fees for each drives, but these adaption don’t really work so far. In the upcoming weeks, Grab will work with tax department and ask for the instruction to apply the 126 Bill correctly.