Hung Yen: Tax revenue from e-commerce business increased 4 times

E-commerce business activities are growing with rapid growth in the number of businesses, households, and individuals participating in the business as well as sales revenue. However, many businesses, households, and individuals doing e-commerce business have not complied with the law, taking advantage of social networks and e-commerce platforms to trade in smuggled, counterfeit, and poor-quality goods, commit fraud, and evade taxes, etc., affecting consumers and causing losses to the state budget.

The provincial market management force inspected and handled an e-commerce business establishment in My Hao town.

In 2024, the provincial tax sector has resolutely implemented tax management for enterprises, households and individuals doing business on e-commerce platforms and social networking platforms (collectively referred to as e-commerce businesses). As a result, by the end of 2024, the provincial tax sector implemented tax management in the area for 48 enterprises and 928 households and individuals doing e-commerce, an increase of more than 6 times compared to 2023. Thanks to that, it has contributed to increasing the tax payable by enterprises, households and individuals doing e-commerce by 4 times compared to 2023.

However, there are still many individuals and businesses doing e-commerce that have not complied with, deliberately evaded tax obligations, and violated the law. In addition to evading tax obligations, many subjects take advantage of e-commerce to trade in counterfeit, smuggled, poor quality goods, and goods that violate intellectual property rights, seriously affecting the rights and legitimate interests of consumers as well as the transparency and health of the market.

In 2024, the provincial market management force detected and handled 24 cases of violations in e-commerce business with a total fine of over 270 million VND paid to the state budget. In addition, the total value of goods confiscated for auction or forced destruction was over 150 million VND.

In January 2025, the provincial market management force coordinated with the provincial police to inspect Mr. Vu Thanh Luan's clothing store on To Chan Street, Lam Son Ward ( Hung Yen City). Through the inspection, it was discovered that Mr. Luan's clothing store was operating as a business household but did not register to establish a business household in cases where registration is required according to regulations. The store owner used a Facebook social network account to advertise and introduce various types of clothing products. An inspection at Mr. Luan's store showed that 497 men's shirts on sale did not have any invoices or documents proving their origin. The packaging and labels of the goods did not show the origin, origin, or address of the place of manufacture of the goods. Mr. Luan’s business household was administratively fined for two violations: “Failure to register a business household in cases where registration is required by regulations” and “Trading in goods of unknown origin”. The total fine was 20 million VND and all infringing goods worth over 32 million VND were confiscated.

Another violation that many businesses commit when conducting e-commerce business is building an e-commerce website but not notifying or registering with the competent state management agency as prescribed before selling. This affects the management and control of business activities on e-commerce websites. In July 2024, the provincial market management force inspected Vadoto Company Limited (Yen My) which was using the website: https://bangtot.vn to sell products manufactured and traded by the company. The above website has an online ordering function, a shopping cart and quotes for each product, delivery methods, receipt of goods, payment, etc., but the company has not notified the Ministry of Industry and Trade about setting up an e-commerce website to sell goods as prescribed. The company was fined VND30 million for administrative violations for not notifying the e-commerce website selling goods to the competent state management agency as prescribed before selling goods to consumers.

To tighten the management of e-commerce business activities, it is necessary to have the drastic and synchronous participation of all levels, functional branches and local authorities. It is necessary to promote propaganda and dissemination so that people understand and strictly comply with policies and laws in e-commerce business activities, while strengthening inspection, examination and review to promptly correct violations. For the tax sector, it is necessary to closely follow the locality to supplement and put into tax management enterprises, households and individuals doing e-commerce business. Force 389, market management, police and authorities at all levels should strengthen coordination in managing the locality, grasp the situation of production and business establishments. At the same time, resolutely and strictly handle violations.