How livestream sellers pay 7% tax

Recently, speaking at the Seminar "Controlling tax risks in e-commerce business", organized by the Vietnam Tax Consulting Association (VTCA) in collaboration with the Vietnam E-commerce Association (VECOM) and MISA Joint Stock Company (MISA), Ms. Nguyen Thi Cuc - Chairwoman of VTCA - said that she was personally very curious about livestream sales sessions with revenue of more than 100 billion VND, even 150 billion VND per session.

Ms. Cuc analyzed that with such livestream sessions, all participants are obligated to pay taxes.

Accordingly, brands must declare value added tax (VAT) and corporate income tax (CIT) on actual revenue from closed sales orders;

As for livestreamers, they pay taxes in two forms: First, if individuals register to pay taxes with individual business households, they pay 7% tax on commissions received from brands (5% VAT, 2% PIT);

Second, if an individual does not register a business and is considered to be working for a brand, he/she must pay personal income tax according to the progressive tax schedule from 5% - 35%; the brand temporarily deducts 10% tax on the commission before paying the individual, paying it to the State budget (NSNN) and the individual is responsible for self-declaring and finalizing the annual tax with the tax authority.

According to Ms. Cuc, for e-commerce platforms, those who receive commissions from brands (whether or not they have a permanent establishment in Vietnam) must pay tax on the commissions received.

"For transportation services, delivering goods to consumers must also pay VAT, CIT, PIT regardless of whether there is a permanent establishment or not, and whether the individual is a resident or non-resident in Vietnam.

In the case of individual brands that have not yet paid or deducted taxes, the e-commerce platform must declare and pay on their behalf," said Ms. Cuc.

Further explaining, Ms. Cuc said that e-commerce platforms must provide tax authorities with data as prescribed for organizations and individuals doing business on their platforms, information prescribed under Decree 91/2022/ND-CP dated October 30, 2022.

"Individuals need to have a firm grasp of the tax policies applicable to their business operations.

In case you have done e-commerce business in the past but have not paid taxes, and the tax authority has not detected any additional collection, you should voluntarily contact the tax office where you reside (temporary or permanent residence) to pay taxes and calculate the late payment fee of 0.03% based on the amount of tax payable and the number of days of late payment.

In case the tax authority discovers that a large amount of tax has not been declared, in addition to handling the violation, collecting and fining the tax, serious violations will be prosecuted before the law.

In case you are doing business or selling online but have not paid taxes, you can choose to register a business to pay tax at the rate of 7% on the commission received (livestream) instead of paying personal income tax at the high tax rate.

For individuals who buy and sell directly, they must register to pay 1.5% tax (1% VAT - 0.5% PIT). In addition, individuals need to be responsible for the quality of goods, origin... Ensuring consumer rights" - Ms. Cuc listed.

Sharing more about how Content Creators can pay 7% tax instead of 35% personal income tax, Mr. Nguyen Lam Thanh - Representative of TikTok Vietnam said: To be eligible for 2% VAT and 5% personal income tax, Creators need to register with the tax authority to become business individuals with specific business lines.

"Then, before receiving income from the seller, the Creator needs to contact the tax authority, pay 7% tax, buy an invoice and issue it to the corresponding seller," said Mr. Thanh.

Source: https://laodong.vn/kinh-doanh/cach-de-nguoi-livestream-ban-hang-nop-7-thue-1375392.ldo