The Vietnam Federation of Commerce and Industry (VCCI) proposed allowing online sellers to pay taxes using the lump-sum method and delay the application date until July 2025.
Based on opinions from the business community, VCCI has just made a series of comments to the Ministry of Finance on the Draft Decree regulating tax management for business activities on e-commerce platforms, digital platforms of business households and individual businesses.
According to VCCI, the tax collection is necessary, but it is necessary to build a tax collection method that ensures minimizing administrative procedures and compliance burdens for businesses and individuals.
At the same time, with the participation of many subjects in the new method, regulations also need to clearly define the responsibilities and obligations of the parties to serve as a legal basis for implementation.
This unit assessed that the draft does not allow individuals doing business on e-commerce platforms to pay taxes by the lump-sum method.
"It is possible that the drafting agency speculates that all e-commerce businesses use software and can quickly extract revenue data, so the declaration method can be applied," according to VCCI.
However, the federation believes that the above regulation is not suitable for individuals who are new to business or have small businesses. Due to small capital, these individuals do not buy business support software and will have difficulty in making the above declaration.
VCCI recommends that the drafting agency consider amending in the direction of allowing declaration according to lump-sum tax applicable to business individuals with the number of orders below the threshold (information on the number of orders can be extracted through shipping units).
At the same time, the draft requires individuals doing business on e-commerce platforms to declare business expenses, but according to VCCI, this is not necessary because tax is calculated on revenue.
Requiring detailed declarations of expenses such as capital costs, labor, electricity/water, transportation, etc. can create a burden for small-scale business individuals.
VCCI also disagrees with the regulation. e-commerce platform responsible for transferring deduction documents to the tax authorities.
The reason is that the exchanges have declared the monthly tax deduction in detail, and the tax authorities have full information and data about taxpayers and the amount of tax payable.
The requirement to transfer tax deduction voucher data in large volumes (millions of vouchers per year) will increase costs for businesses.
In addition, the draft stipulates that taxable revenue is the total amount of money from the sale of goods and services that the e-commerce platform collects from the buyer.
VCCI believes that this provision is understood to mean that the seller's revenue will be the total amount paid by the buyer. This is not appropriate because each transaction made through the platform includes many products/services such as the seller's products/services, shipping services, platform services, payment services, etc. Thus, the amount the buyer pays for the transaction is the total amount paid for the above services, not just paid to the seller.
Therefore, to ensure reasonableness, VCCI proposes that the drafting agency amend in the direction that taxable revenue is the amount of money that the e-commerce platform expects to pay to the individual business.
To support businesses in having time to prepare technology systems, human resources and guide sellers, VCCI proposed to postpone the application date of the regulation to July 1, 2025, three months later than the draft.
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