Association proposes to postpone the effective date of tax deduction on behalf of e-commerce business households

Lack of guiding decree, unable to deduct tax for e-commerce business households - Illustration photo

On March 24, the Vietnam E-commerce Association (VECOM) sent a document to the authorities proposing to postpone the effective date of the responsibility of e-commerce platform managers in deducting and paying taxes on behalf of business households and individuals doing business on the platform from April 1, 2025.

Accordingly, on November 29, 2024, the National Assembly issued Law No. 56/2024/QH15 amending and supplementing 9 laws, including the 2019 Law on Tax Administration (Law No. 56). Law No. 56 stipulates that the effective date of Article 6.5.b on the responsibility of e-commerce platform managers in deducting and paying taxes on behalf of business households and individuals doing business on the platform is from April 1, 2025.

In a document sent to the authorities, VECOM Chairman Nguyen Ngoc Dung said that the Decree guiding the implementation has not been issued yet, although there are only a few days left until the regulation takes effect. This causes confusion for the business community managing e-commerce platforms as well as sellers on domestic and foreign e-commerce platforms.

After two official working sessions with the Tax Department on January 16, 2025 and March 7, 2025, VECOM found that there are still many unclear issues directly related to the responsibilities and tax obligations of business households and individuals, especially the contents of tax declaration and refund.

E-commerce platforms have been receiving many questions about how to implement this regulation but cannot answer clearly because there is no official guidance document, while the understanding and responses of tax authorities at the central and local levels are different, according to VECOM Chairman Nguyen Ngoc Dung.

Furthermore, the 2024 Law on Value Added Tax also stipulates that e-commerce platforms deduct and pay taxes on behalf of business households and individual businesses, effective from July 1, 2025.

Therefore, VECOM proposes that the competent authorities allow the effective date of Article 6.5.b. Law No. 56 to be postponed to July 1, 2025 to comply with the Law on Value Added Tax, and at the same time, to give management agencies and enterprises enough time to prepare for implementation as well as to disseminate and answer questions about specific obligations and implementation methods for sellers who are business households and business individuals.

Source: https://baochinhphu.vn/hiep-hoi-de-xuat-lui-thoi-diem-co-hieu-luc-khau-tru-thue-thay-ho-kinh-doanh-tmdt-102250325114820825.htm