Do not take away your benefits when buying online

VCN- Before the regulation that banks must provide taxpayers' account information to the tax office, online merchants have passed on many ways to "avoid tax".
Usury rate on the online lending market place can be up to 1,400 percent per year Usury rate on the online lending market place can be up to 1,400 percent per year
October 15: Webinar ononline Customs news themed October 15: Webinar ononline Customs news themed "Customs as head agency for specialised inspection”
Use of online payments expanded Use of online payments expanded
1010-2023-7-2224-thue-1
Decree 126 has stricter regulations on tax administration for individuals engaged in online business. Photo: Thuy Linh

However, online businesses transact vigorously and many times in the e-commerce environment will not be able to "anonymize" for too long because the tax administration’s legal corridor is complete.

Tax evasion

In Vietnam, the potential for business development on social networks and e-commerce is huge. According to the General Department of Taxation and data provided by joint stock commercial banks, there are currently more than 18,300 organizations and individuals opening accounts at banks with the total income received from the websites of social network Google, Facebook, Youtube totalling more than VND1.4 trillion.

However, many say that this is actually just the tip of the iceberg, when many individuals doing business on social networks are always looking for ways to hide their income and avoid taxes.

With the above situation, Decree 126/2020 / ND-CP of the Government detailing a number of articles of the Law on Tax Administration (effective from December 5) has stricter regulations on tax administration of individuals engaged in business online.

Specifically, according to the provisions of Clause 2, Article 30 of Decree 126, from December 5, commercial banks are responsible for providing transaction information via the account, account balance and transaction data according to proposals of the heads of tax administration agencies to serve the purpose of inspection and examination to determine payable tax obligations. At the same time, to take coercive measures to enforce administrative decisions on tax administration according to the provisions of the tax law.

After Decree 126 was issued, online dealers continued to try to bypass the authorities.

Specifically, recently, a series of owners of sales pages on Facebook simultaneously shared information such as: "From December 5, banks have an obligation to provide account information to the tax agency. Expect customers to have a bank transfer note: No need to record any payment, do not mention anything, do not mention Facebook.”

Many Facebook public accounts used to sell in the past. Receiving money is now also quietly deleting information and all transactions are reported via Facebook, Zalo or via phone numbers. Not only that, there are other ways to "avoid" taxes such as: Priority in cash collection; dividing multiple accounts to receive money (even keeping an account in the name of a relative); if the customer has a bank transfer, he/she just writes the name and takes a screen capture to send and suggest customers when transferring money only to write the information "donation or gift" and not mention the word "goods".

Ms. Ta Thu Dung (owner of a clothing store on Nghia Tan, Cau Giay, Hanoi) said that it is not fair for online shop owners to find ways to avoid such tax obligations.

"We lose our shop rentals, we have to pay license fees and personal income tax fully to the tax office, why do many online businesses whose revenue is bigger than us do not have to pay tax? Using the social networking platform without having to pay taxes, the price of their products will be much cheaper than us. It is not fair," said Ms. Dung.

The Tax Office will "trace" in any way

According to Assoc. Prof. Dr. Dinh Trong Thinh, a senior lecturer at the Academy of Finance, it is unfair that online businesses avoid tax because traditional businesses always pay taxes fully. Moreover, helping sellers to circumvent the law and evade taxes will cause a lot of consequences.

"In developed countries, if the account increases by US$1,000, the bank will be on behalf of the tax authorities to ask where this US$1,000 is, how and what kind of taxes do you pay to help customers for tax declaration and tax payment? To avoid tax evasion, there must be close coordination between local authorities, banks, tax authorities, market management," said Associate Professor, Dr. Dinh Trong Thinh

According to many experts, Decree 126 will be a "barrier" to prevent tax evasion of some individuals doing business on e-commerce sites and social networks, making tax collection transparent and contributing to the state budget. At the same time this will ensure fairness in tax liability between traditional business and business on digital platforms.

Facing this issue, Deputy Director of the General Department of Taxation Dang Ngoc Minh said that in reality, there was a situation of dealing with and avoiding taxes when this Decree took effect. The situation of online transactions without names and content to avoid tax is gradually becoming more common. However, the leader of the General Department of Taxation affirmed that in one way or another, the Tax Office will also find out, there will be many measures to collect taxes.

According to the provisions of Decree 126 and the current Law on Tax Administration, one principle of tax compliance of individuals and organizations is to declare, pay and be responsible for their own behavior. Accordingly, in all cases, if the individual evades tax, they will be found by the tax agency based on the payment "traces", payment records, and transactions on e-commerce sites. If an individual has a lot of transactions on the e-commerce environment, then that person cannot remain hidden forever.

Regarding tax enforcement with accounts, the leader of the General Department of Taxation said that the current law allows synchronous implementation of seven enforcement measures, including: notice, name, request to pay tax via account, control invoices. Depending on the circumstances and conditions, the tax agency will consider using the most effective method. The ultimate goal is how to correctly and fully collect taxes.

By Thuy Linh/Bui Diep

Related News

E-commerce tax management increasingly tightened

E-commerce tax management increasingly tightened

VCN - With the explosion of e-commerce business, the application of modern technology will support both e-commerce business as well as e-commerce tax management.
Enhancing the ability to protect consumer rights

Enhancing the ability to protect consumer rights

VCN - To protect consumers, the Law on Consumer Rights Protection 2023, effective from July 1, 2024, has expanded the scope to foreign businesses providing products and services to consumers in Vietnam. At the same time, there are many new regulations related to the protection of consumer information, responsibility for providing information, product recall…
Seeking overdue tax debts of enforced businesses – Part 1: Some enforced exit suspension to find out that they are directors

Seeking overdue tax debts of enforced businesses – Part 1: Some enforced exit suspension to find out that they are directors

VCN – In addition compliant businesses, contributing large tax revenue to the State budget and bolstering economic development, there are still some businesses taking advantage of the openness of the law to establish illegitimate companies to delay billions of dong in tax debt for many years, in order to avoid tax obligations to the State. To collect these tax debts, the Law on Tax Administration No. 38/2019/QH14 stipulates eight measures to enforce administrative decisions on tax management. One of those effective measures is exit suspension for legal representatives of businesses, which has helped the Customs agency earn hundreds of billions of dong in import-export tax and domestic taxes.
Helping businesses manage post-customs clearance risks in the Customs field

Helping businesses manage post-customs clearance risks in the Customs field

VCN - In order to support manufacturing and exporting enterprises to improve supply chain risk management capacity, International Logistics and Logistics Joint Stock Company (InterLOG) has just coordinated with the Vietnam Industry Support Alliance (VISA) and Dong Nai Customs Department to organize an in-depth seminar with the topic "Corporate governance - Preventing post-customs clearance risks in the customs field".

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version