ANTD.VN - The Ministry of Finance has just announced to collect opinions on the draft Decree regulating tax management for business activities on e-commerce platforms and digital platforms of business households and individual businesses.
E-commerce platforms deduct and pay taxes on behalf of sellers
In the Draft, the Ministry of Finance clearly stipulates that e-commerce platforms deduct and pay taxes on behalf of sellers.
Specifically: Organizations managing domestic and foreign e-commerce platforms that are eligible to deduct and pay taxes on behalf of others (including owners directly managing e-commerce platforms or persons authorized to manage e-commerce platforms) shall deduct and pay taxes on behalf of others for the value added tax payable in accordance with the provisions of the law on value added tax for each transaction of providing goods and services generating revenue domestically by households and individuals residing and doing business on e-commerce platforms.
At the same time, deduct and pay tax on behalf of personal income tax for each transaction of providing goods and services generating revenue domestically and internationally of households and individuals residing and doing business on e-commerce platforms.
Similarly, for non-resident individuals, these organizations are also responsible for deducting and paying tax on behalf of the value added tax payable for each transaction providing services generating domestic revenue and deducting and paying tax on behalf of the personal income tax payable for each transaction providing goods and services generating domestic revenue of these individuals on the e-commerce platform.
 |
E-commerce platforms are responsible for deducting and paying taxes on behalf of sellers. |
The time for deduction is before the payment is transferred from the buyer of goods and services. The amount of tax payable is determined as a percentage (%) of the revenue of each completed transaction.
Specifically, the percentage of value added tax calculated according to the provisions of the Law on Value Added Tax is as follows: Goods 1%; Services 5%; Transportation and services associated with goods 3%.
The personal income tax rate is implemented according to the provisions of the Personal Income Tax Law as follows: For resident individuals: Goods apply a rate of 0.5%; Services are 2%; Transportation and services associated with goods are 1.5%.
For non-residents: Goods are taxed at 1%; Services at 5%; Transportation and services associated with goods at 2%.
The draft stipulates that in cases where organizations managing e-commerce platforms subject to deduction and payment cannot determine whether the transaction generating revenue from the e-commerce platform is goods or services, the determination of the amount of tax to be deducted shall be implemented according to the highest rate in the above regulations...
The budget can collect an additional 1,000 billion VND per year.
According to the Ministry of Finance, Vietnam's e-commerce market is growing. The size of this market has grown strongly in recent years (from 16.4 billion USD in 2022 to 20.5 billion USD in 2023 and is expected to reach 25 billion USD in 2024).
However, total revenue from e-commerce business activities only accounts for about 20% of revenue scale and this proportion is tending to decrease from 20.1% in 2022 to 17.4% in 2024.
Regarding the tax authority's management database for e-commerce business activities, the Ministry of Finance said that currently, the General Department of Taxation has built and operated a database on domestic e-commerce activities with information on organizations and individuals doing business on e-commerce platforms from more than 400 trading floors, which is more than 500,000 organizations and individuals doing business, with the estimated tax revenue in 2024 reaching 116 trillion.
Regarding cross-border e-commerce activities, through tax collection management from the electronic information portal, the General Department of Taxation has information data on 120 foreign suppliers without a permanent establishment (NCCNN) in Vietnam that generate income in Vietnam from e-commerce business activities with the state budget revenue from these entities to date being 17.8 trillion VND.
Information on Vietnamese organizations and individuals declaring and paying taxes on behalf of foreign investors, including 31,000 organizations and individuals using advertising services and more than 4,200 organizations and individuals using e-commerce platform services such as TikTok shop. Information on foreign organizations and individuals generating income on Vietnamese e-commerce platforms (Shopee, Lazada) with a total of 183 million transactions and transaction revenue of VND 16,641 billion.
In addition to business activities on major domestic e-commerce platforms, households and individuals also conduct business activities on foreign e-commerce service platforms such as: Booking, Agoda, Airbnb, Tripadvisor... (e-commerce platforms for accommodation services); digital information content platforms, social networking platforms such as: Netflix, Spotify (subscription platforms); Google, Youtube, Facebook, Tiktok (advertising platforms, social networks); Apple Store, CH Play (app store platforms)...
Along with that, a new business entity is emerging, which is individuals who are key influencers (KOLs) doing business on e-commerce platforms and digital platforms through livestreaming to advertise and sell goods and services. Some KOLs livestream advertising and selling goods with revenue of tens of billions and hundreds of billions of VND.
Through a survey of large e-commerce platforms such as Shopee, TikTok Shop, Lazada, Tiki, and Sendo, the Ministry of Finance said that the platforms all have online ordering and payment functions and all have full information about sellers and control cash flow from sales and service provision of individuals and businesses on the platform.
According to statistics from more than 400 e-commerce platforms that have provided information to tax authorities as prescribed in Decree 91/2022/ND-CP, there are more than 300,000 individuals engaged in e-commerce business activities with tax revenue in 2024 reaching about 2.5 trillion VND.
However, a large number of business booths on e-commerce platforms have not identified sellers (according to statistics on the 5 major e-commerce platforms Shopee, Lazada, Tiki, Sendo, Grab, there are more than 300,000 booths with users not identified with sales of over 70,000 billion).
The Ministry of Finance believes that the regulation that trading floors deduct and pay taxes on behalf of others will have an impact on increasing state budget revenue from business income of households and individuals doing business on the floor, especially unidentified subjects.
Estimated revenue at a rate of 1.5% on sales of 70,000 billion VND will be about 1 trillion VND...
Source: https://www.anninhthudo.vn/lay-y-kien-du-thao-quy-dinh-san-thuong-mai-dien-tu-nop-thue-thay-nguoi-ban-hang-post602841.antd
Comment (0)