Ministry of Industry and Trade issues 'ultimatum' to e-commerce platforms Temu and Shein

The Ministry of Industry and Trade has worked with representatives of e-commerce platforms Temu and Shein and requested that business registration procedures be completed in November 2024.

Must complete business registration procedures in November

On the afternoon of November 9, at the regular Government press conference, Deputy Minister of Industry and Trade Nguyen Hoang Long answered the press about reviewing cross-border e-commerce platforms operating in Vietnam but not yet licensed such as Temu and Shein.

Deputy Minister Nguyen Hoang Long said that the Ministry of Industry and Trade has worked with representatives of the cross-border e-commerce platforms Temu and Shein and requested that they complete business registration procedures in November 2024. In addition, the Ministry of Industry and Trade also requested that Temu and Shein officially notify Vietnamese consumers on their applications that they are registering their operations.

Deputy Minister of Industry and Trade Nguyen Hoang Long answers at the regular Government Press Conference - Photo: VGP/Nhat Bac

In the process of completing business procedures in Vietnam, the e-commerce platforms Temu and Shein must stop advertising and marketing activities to protect consumer rights.

The Ministry of Industry and Trade also requested these platforms to urgently study other legal regulations related to e-commerce such as customs and taxes.

"Shein and Temu exchanges are working closely with the Ministry of Industry and Trade and in November, these two exchanges will register to operate in Vietnam," said Deputy Minister Nguyen Hoang Long.

The Deputy Minister of Industry and Trade affirmed that after the announcement, if these exchanges do not comply, the Ministry of Industry and Trade will coordinate with relevant agencies to implement technical measures such as blocking applications and blocking domain names.

"We will continue to implement inspection and examination measures, and warn consumers about risks with unlicensed e-commerce platforms," ​​Deputy Minister Nguyen Hoang Long emphasized, adding that the Ministry of Industry and Trade will report to the Prime Minister to review relevant legal regulations and propose measures to perfect the legal framework in the coming time.

Temu is declaring zero tax

At the press conference, Mr. Mai Son - Deputy General Director of the General Department of Taxation said that according to current regulations, with domestic revenues, including revenues from e-commerce activities, on the basis of the Law on Tax Administration, managers of cross-border e-commerce platforms are responsible for self-calculating, self-declaring, and self-paying taxes directly through the electronic information portal of the General Department of Taxation (deployed since March 2022).

"If a foreign supplier is found to have declared incorrect revenue, the tax authority will compare data to determine revenue, thereby requesting the foreign supplier to fulfill its obligations and conducting inspections and checks according to regulations if there are signs of fraud or tax evasion," said Mr. Son.

Temu is operating in more than 80 countries and territories. Photo: Hoang Trieu

By the end of October 2024, 116 foreign suppliers had registered to declare taxes via the electronic portal with VND 20,174 billion. Since the beginning of the year, revenue through the portal has reached VND 8,600 billion, an increase of 25.7% over the same period in 2023.

On September 4, 2024, the owner of Temu platform in Vietnam registered for tax through the electronic portal for foreign suppliers of the General Department of Taxation and was granted tax code: 9000001289.

According to the regulations of the Ministry of Finance, foreign suppliers will register to pay taxes quarterly. Currently, the owner company Temu has declared taxes for the third quarter of 2024, in which it declared zero revenue and provided an explanation. Revenue generated in October will be declared in the fourth quarter of 2024 declaration.

The Ministry of Finance has directed the General Department of Taxation to urge Temu to declare revenue in the fourth quarter of 2024 and submit it on January 30, 2025 in accordance with the law.

"The Ministry of Finance will closely monitor and urge Temu's tax declaration and payment activities, ensuring that the state budget is collected correctly and sufficiently according to the law," Mr. Son affirmed.

In addition, the Ministry of Finance will closely coordinate with management agencies related to cross-border e-commerce platform activities, and carry out tax management work promptly and fully.

Source: https://congthuong.vn/bo-cong-thuong-ra-toi-hau-thu-voi-san-thuong-mai-dien-tu-temu-shein-357853.html