Strengthening tax management for e-commerce business activities

Prime Minister Pham Minh Chinh has just signed and issued Directive No. 18/CT-TTg dated May 30, 2023 on promoting connection and data sharing to serve e-commerce development, combat tax losses, and ensure monetary security.

The Directive clearly states: To enhance effectiveness and efficiency and continue to promote digital transformation in state management of e-commerce activities, business activities on digital platforms, cross-border business, connection and data sharing between ministries and branches to serve e-commerce development, prevent tax losses, and ensure monetary security, the Prime Minister requests:

Firstly, the Ministry of Finance shall preside over and coordinate with ministries and branches in completing the amendment of tax policies and laws related to e-commerce, cutting down administrative procedures, reducing declaration points, strengthening the implementation of solutions for tax collection at source, preventing tax losses, and strictly implementing sanctions for tax and customs violations.

Direct the General Department of Taxation to build a tax management database for e-commerce and digital business to apply risk management in tax management on the basis of big data. The deadline for completion is 2023 at the latest.

Take the lead in developing a detailed plan for connecting and sharing data with the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Public Security, the State Bank of Vietnam and relevant agencies to strengthen tax management of e-commerce business activities, cross-border digital product and service provision activities; develop standards and norms for connecting and sharing data. The deadline for completion is the third quarter of 2023 at the latest.

Preside over and coordinate with the Ministry of Industry and Trade, Ministry of Information and Communications, Ministry of Public Security, State Bank of Vietnam and relevant agencies to standardize, digitize, connect and share e-commerce data according to the specific roadmap of each ministry and sector.

Second, the Prime Minister assigned the Ministry of Industry and Trade to preside over and coordinate with ministries and branches in completing and amending policies and laws on state management of e-commerce, including strengthening sanctions for violations of information storage and provision according to state management regulations on e-commerce for entities of e-commerce activities.

Build and put into operation a shared database on e-commerce to serve tax and customs management and other state management tasks as required by the Government. Completion deadline is 2025 at the latest.

At the same time, coordinate information exchange with the Ministry of Finance to serve inspection and examination work; coordinate to handle violations of e-commerce activities according to legal regulations for enterprises, business households, and individuals operating e-commerce without declaring and paying taxes. The deadline for completion is 2023 at the latest.

Preside over the implementation of the integration of electronic identification accounts, the application of chip-based Citizen Identification Cards or population data to authenticate the subjects of e-commerce activities participating in contract signing on the Vietnam Electronic Contract Development Axis; manage, operate, and ensure the stability of the Vietnam Electronic Contract Development Axis. The deadline for completion is 2023 at the latest.

The Prime Minister also requested solutions to encourage organizations and businesses providing e-commerce services to apply electronic identification accounts, chip-based Citizen Identification Cards or resident data to authenticate information of organizations and individuals doing business on e-commerce trading floors. The deadline for completion is 2023 at the latest.

Third, the Ministry of Information and Communications shall preside over and coordinate with ministries and branches in completing the amendment of policies and laws on telecommunications; internet; advertising on the network environment; management of the provision of digital products and services; software products and services and products and services through domestic and cross-border digital platforms; research and supplement sanctions for handling suspension, prevention, and revocation of business licenses, etc. that the Ministry of Information and Communications directly manages when there are violations of tax laws.

Assess the responsiveness and expansion needs of the National Data Integration and Sharing Platform to serve as a basis for upgrading and readiness to serve the connection and sharing of data between ministries, branches, localities, organizations and enterprises related to e-commerce activities, ensuring smoothness and confidentiality, security, information safety and network security. The deadline for completion is 2023 at the latest...

Fourth, the Ministry of Public Security shall preside over and coordinate with ministries and branches in completing the amendment of specialized policies and laws within its functions and tasks to ensure the common goal of developing e-commerce, preventing tax losses, ensuring network security and monetary security, including studying the use of electronic authentication in e-commerce transactions.

Preside over and coordinate with ministries and branches to accelerate the progress of connecting the National Population Database with databases and information systems of ministries, branches and localities to carry out electronic identification and authentication; synchronize population data with civil status, tax, banking, telecommunications data... to serve the identification and authentication of individuals and organizations to prevent fraud and tax evasion in e-commerce activities.

Integrate the use of electronic identification accounts to declare and register for tax payment on the national electronic identification application (VNeID) and other platforms as instructed by the Tax Authority.

Research and develop or integrate payment gateway applications, e-wallets, and other utilities on the national electronic identification application (VneID) to facilitate people when participating in e-commerce activities.

Preside over the analysis, synthesis of population data, identification, electronic authentication and enrichment data in the national population database to detect early tax evasion, serve tax collection and management. Deadline for completion is 2023 at the latest.

Preside over and coordinate with relevant ministries and agencies to guide and promote online payment utilities and digital signatures on the national electronic identification application (VneID) to facilitate people when participating in e-commerce activities. The deadline for completion is 2023 at the latest.

Fifth, the State Bank of Vietnam shall preside over and coordinate with ministries and branches in completing the amendment of policies and laws on the national payment system and information security of credit institutions to serve the development of e-commerce, prevent tax losses, and ensure monetary security. Continue to promote and encourage non-cash payments, develop electronic payment utilities to promote e-commerce...

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