E-commerce platforms to be connected with tax agencies from next year

E-commerce platforms must be electronically connected with tax management agencies from the beginning of next year, not from next month, as the tax watchdog aims to better collect taxes from sellers operating on the platforms.

E-commerce platforms to be connected with tax agencies from next year hinh anh 1

Lychees of Bac Giang province sold on an e-commerce platform (Photo: VNA)

E-commerce platforms must be electronically connected with tax management agencies from the beginning of next year, not from next month, as the tax watchdog aims to better collect taxes from sellers operating on the platforms.

The deadline delay was part of a roadmap recently issued by the General Department of Taxation to implement Circular No 40/2021/TT-BTC issued on June 1 and taking effect from the beginning of August about value-added tax, personal income tax and tax management of individual sellers.

Under the circular, e-commerce platforms would be responsible for sellers' tax declarations and payments, provisions that have received complaints about their reasonableness and consistency with established tax regulations.

The circular also dictated that e-commerce platforms must provide information on sellers, including revenue, banking accounts and products, to tax management agencies to aid tax collection.

Some have complained that this regulation would cause great difficulties for e-commerce platforms.

According to the Vietnam e-Commerce Association, e-commerce platforms only provide technology infrastructure to connect sellers and buyers and help them conduct transactions. E-commerce platforms do not pay the sellers, meaning e-commerce platforms are not responsible for declaring and paying taxes on behalf of the sellers.

Some regulations were infeasible and could have large impacts on e-commerce platforms and thousands of sellers, the association said.

Dau Anh Tuan, head of the legal department under the Vietnam Chamber of Commerce and Industry, said the regulation could be a burden on the rapidly-developing e-commerce sector with huge potential in Vietnam.

Implementing this regulation would increase costs for e-commerce platforms, Tuan said.

 

He said that under the Law on Personal Income Tax, organisations and individuals were responsible for declaring and paying their own taxes. Asking e-commerce platforms to declare and pay taxes on behalf of the sellers could be inconsistent, he said.

Vietnam's e-commerce market is developing rapidly and grew by 15 percent in 2020 to a value of 3.2 billion USD, the highest in Southeast Asia.

The COVID-19 pandemic has provided a golden opportunity for e-commerce platform development, however, many organisations and individuals have not fulfilled their tax obligations despite their huge online revenue.

In response to the complaints, the General Department of Taxation said that the regulation would be implemented following a roadmap, not from the beginning of August when the circular came into force.

From now to August 1, the General Department of Taxation will work with the Ministry of Industry and Trade to survey several e-commerce platforms to prepare a data format and collect opinions from e-commerce platforms.

From August 1 to October 1, the General Department of Taxation will propose a standard data format for information connectivity.

From October 1, 2021, to January 1, 2022, the General Department of Taxation and e-commerce platforms will carry out upgrades to ensure smooth electronic information connectivity.

From the beginning of next year, e-commerce platforms will be electronically connected with tax management agencies./.

Source: VNS

 
 

Other News

.
Hanoi targets GRDP growth up to 7.5% in 2021
Hanoi targets GRDP growth up to 7.5% in 2021
BUSINESSicon  18/07/2021 

Hanoi will take advantage of a shift in investment capital worldwide to attract foreign direct investment into the city.

ASEAN, Czech Republic look to standardise customs procedures
ASEAN, Czech Republic look to standardise customs procedures
BUSINESSicon  18/07/2021 

The Association of Southeast Asia Nations (ASEAN) Committee in coordination with the Customs Administration of the Czech Republic has held a webinar to introduce the electronic customs of the European country.

SBV allows banks to expand credit room
SBV allows banks to expand credit room
BUSINESSicon  18/07/2021 

The State Bank of Viet Nam (SBV) has just officially approved credit room extension for some banks.

Live streamers compelled to register with MIC if new draft decree adopted
Live streamers compelled to register with MIC if new draft decree adopted
BUSINESSicon  18/07/2021 

The Ministry of Information and Communications has proposed that only licensed social networking sites and accounts should be allowed to livestream to generate revenue.

Vietnamese top list of most online shoppers in SEA
Vietnamese top list of most online shoppers in SEA
BUSINESSicon  17/07/2021 

Vietnam has the highest number of people shopping on e-commerce platforms in the Southeast Asia region with some 49.3 million people, according to the E-commerce White Book 2021 released by the Vietnam E-Commerce and Digital Economy Agency.

Vietnam ‘promised land’ for digital banking
Vietnam ‘promised land’ for digital banking
BUSINESSicon  17/07/2021 

Vietnam is among the regional countries that are seeing new digital bank models, experts have said.

Textile and garment makers seek multitude of options
Textile and garment makers seek multitude of options
BUSINESSicon  17/07/2021 

As the current outbreak of the pandemic remains complicated, textile and garment makers fear lasting impacts on their operations, 

Bumps ahead for the giants of transport
Bumps ahead for the giants of transport
BUSINESSicon  17/07/2021 

After enduring months of losses, state-owned transport giants Vietnam Railways and Vietnam Airlines are pinning hopes on a financial lifebuoy to recover from the incurred losses – but even significant support may not be enough for them.

Tardy public spending will hinder post-pandemic economic recovery
Tardy public spending will hinder post-pandemic economic recovery
BUSINESSicon  17/07/2021 

The COVID-19 health crisis and the resulting economic downturn has thrown a spanner in the works of already tardy public spending, hindering Vietnam’s efforts to revive its post-pandemic economy and speed up slowing GDP growth.

Vietnam moving out of the epidemic more slowly than others, needs new policies
Vietnam moving out of the epidemic more slowly than others, needs new policies
FEATUREicon  18/07/2021 

Prime Minister Pham Minh Chinh affirmed that Vietnam’s development goals have not changed and agreed with the two GDP growth scenarios for 2021 developed by the Ministry of Planning and Investment.

Vietnam among top 20 FDI destinations in the world
Vietnam among top 20 FDI destinations in the world
BUSINESSicon  16/07/2021 

For the first time, Vietnam is among the top 20 countries attracting the most foreign direct investment (FDI) capital in the world, according to World Investment Report 2021 by the United Nations Conference on Trade and Development (UNCTAD).

Six cities and provinces to pioneer in use of e-invoices
Six cities and provinces to pioneer in use of e-invoices
BUSINESSicon  16/07/2021 

The General Department of Taxation plans to launch the electronic invoice system at tax departments in Ha Noi, HCM City, Quang Ninh, Hai Phong, Phu Tho and Binh Dinh by the end of this year before rolling it out nationwide in 2022.

VIETNAM BUSINESS NEWS JULY 17
VIETNAM BUSINESS NEWS JULY 17
BUSINESSicon  17/07/2021 

Businesses have expressed their hope that customs agencies and relevant ministries and sectors will further simplify administrative procedures, which, they suggested, should be completely handled online, according to a survey.

New money into stock market slows down, economy growth may miss expectations
New money into stock market slows down, economy growth may miss expectations
BUSINESSicon  16/07/2021 

In its recent report, Dragon Capital said that the market uptrend is still led by new individual investors.

Three mobile network providers seek permission to launch mobile money services
Three mobile network providers seek permission to launch mobile money services
BUSINESSicon  16/07/2021 

Three mobile network operators - Viettel, VNPT and MobiFone - have applied for the implementation of their own Mobile Money pilot projects.

Vietnam set to reach mobile wallet penetration of nearly 55 per cent by 2025
Vietnam set to reach mobile wallet penetration of nearly 55 per cent by 2025
BUSINESSicon  16/07/2021 

Vietnam is set to see rapid expansion in terms of mobile wallet usage with mobile wallet penetration to reach nearly 55 per cent by 2025.

Foreign retailers come, Vietnamese billionaires struggle to survive
Foreign retailers come, Vietnamese billionaires struggle to survive
FEATUREicon  16/07/2021 

The increasing presence of foreign giants has put great pressure on domestic retailers.

Opening the economy again step by step
Opening the economy again step by step
FEATUREicon  16/07/2021 

Economists have urged the gradual reopening of the economy. VietNamNet talked to Dr Nguyen Duc Kien about the issue.

HCM City applies ‘production-and-quarantine’ model
HCM City applies ‘production-and-quarantine’ model
FEATUREicon  16/07/2021 

Many enterprises in HCM City are operating under a so-called production-and-quarantine model, i.e. maintaining production while strictly following quarantine rules amid the Covid-19 outbreak.

Agriculture Minister warns of unsustainable development
Agriculture Minister warns of unsustainable development
BUSINESSicon  16/07/2021 

The Minister of Agriculture has expressed concern over the abuse of fertilizer and plant protection chemicals, saying this does not represent sustainable agriculture.

 
 
 
Leave your comment on an article

OR QUICK LOGIN