Individual traders on e-commerce trading floors required to pay flat tax or under tax declaration method

VCN- In the near future, individual traders on e-commerce trading floors will have to pay and declare tax fully.
Tightening tax management for business on e-commerce platforms Tightening tax management for business on e-commerce platforms
HCM City: Customs and Tax coordinate to combat revenue loss HCM City: Customs and Tax coordinate to combat revenue loss
E-commerce platform – a sustainable solution for farming products E-commerce platform – a sustainable solution for farming products
Individual traders on e-commerce trading floors required pay flat tax or under tax declaration method
From August 1, e-commerce trading floors must provide online information to tax authorities. Photo: Internet.

Tax declaration is required

Clause 1, Article 8 of Circular 40/2021/TT-BTC issued by the Ministry of Finance says the owners of e-commerce trading floors are required to declare and pay taxes on behalf of individual taxpayers in line with the taxman’s roadmap.

The Director of Tax Administration Department on small and medium enterprises and business households and individuals, Nguyen Thi Lan Anh, cited Circular No.40 as saying that e-commerce trading floors are responsible for paying and declaring value added tax, personal income tax on behalf of individuals trading goods and services via e-commerce trading floors. These tax amounts will be based on the tax rate of each sector and business line.

E-commerce trading floors will base on the revenue and other revenues of individuals via these platforms such as revenue from shipping units, payment intermediaries and other payment methods to determine revenue.

All revenues and declared and paid tax amounts of each order on an e-invoice issued to buyers and sellers will be recorded by e-commerce trading floors.

From now to before July 1, 2022, if buyers require invoices, they must provide paper invoices issued by the taxman, Director Nguyen Thi Lan Anh said.

Also, from July 1, 2022, e-commerce trading floors must comply with regulations on e-invoices as prescribed in the Law on Tax Administration and Decree No. 123/2020/ND-CP and the guidance circulars of the Ministry of Finance.

From August 1, 2021, all e-commerce trading floors must submit online information to the taxman with the standard data formats required by the tax authorities.

Information provision is expected to be done monthly. The information provided to the taxman includes full name; personal identification number or identity card or citizen identification number or passport; tax code; address; email; phone number; provided goods and services; revenue; seller's bank account; and otherwise relevant information.

If the current database of e-commerce trading floors has not met the provisions of the Law on E-commerce, e-commerce trading floors must add information no later than August 1, 2021.

Responsibility of individual traders in e-commerce trading floors is specified

The new provisions specify responsibilities of individual traders. These traders must have a fixed business location and have a tax code. Individual traders doing business via e-commerce trading floors that may be business households will pay flat tax or pay under the tax declaration method.

Information provided to e-commerce trading floors is also specified in Article 37 of Decree No. 52/2013/ND-CP, including name, address of head office or permanent residence of the individual, business registration certificate or Individual Taxpayer Identification Number, phone number, information about goods, services and prices, shipping and delivery and payment methods.

If the e-commerce trading floors paid and declared taxes on behalf of individual traders, traders will base on the revenue, paid tax amounts showed on invoices to declare and adjust revenue and tax rate at the tax authority managing fixed business locations.

If e-commerce trading floors have not paid taxed for individual traders, the traders will base on the business results showed on documents issued by floors and results at fixed business locations to declare and pay tax at the tax office.

By Thuy Linh/Ngoc Loan

Related News

Counterfeit goods in small e-commerce parcels challenge enforcement agencies

Counterfeit goods in small e-commerce parcels challenge enforcement agencies

VCN - The rapid growth of e-commerce has introduced significant challenges for authorities dealing with counterfeit goods. Counterfeit products, often concealed in small parcels sent through e-commerce channels, have become a prominent issue for enforcement agencies.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Crackdown on counterfeit goods in e-commerce uncovers widespread violations

Crackdown on counterfeit goods in e-commerce uncovers widespread violations

VCN - Although the number of cases uncovered by the Market Surveillance Authority has decreased, the production and sale of goods violating origin, intellectual property, and food safety regulations—especially in e-commerce—have surged compared to last year.
Closely control imported products traded via e-commerce

Closely control imported products traded via e-commerce

VCN – The General Department of Vietnam Customs has directed local customs departments to strengthen control and supervision for imported goods traded via e-commerce.

Latest News

Launching virtual assistants to support taxpayers

Launching virtual assistants to support taxpayers

VCN – After completing the research and development of the artificial intelligence product “Virtual assistants to support taxpayers”, on November 21, Hanoi Tax Department was selected by the General Department of Taxation as the pilot unit to support taxpayers.
Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - Slow credit demand and fierce competition have forced banks to seek ways to increase non-interest revenue, especially when there is a lot of support from the digital transformation of the entire banking system.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.

More News

Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Read More

Your care

Latest Most read
Launching virtual assistants to support taxpayers

Launching virtual assistants to support taxpayers

VCN - According to the Hanoi Tax Department, the department manages 236,000 enterprises and 235,000 business households and over 10 million personal tax codes.
Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - In the first 9 months of 2024, the group of banks leading in profit has focused on increasing the ratio of non-term deposits (CASA) to help reduce operating costs, resulting in positive credit growth.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Mobile Version