Individual traders on e-commerce trading floors required to pay flat tax or under tax declaration method
Tightening tax management for business on e-commerce platforms | |
HCM City: Customs and Tax coordinate to combat revenue loss | |
E-commerce platform – a sustainable solution for farming products |
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.
Related News
E-commerce tax collection in Hanoi increased by 265%
10:28 | 13/10/2024 Finance
Insurance companies adapt to e-commerce trends
09:30 | 11/09/2024 Import-Export
Ho Chi Minh City: Many violations in e-commerce business
10:19 | 25/08/2024 Anti-Smuggling
Policies of goods quality inspection need to facilitate and prevent fraud
09:43 | 17/08/2024 Regulations
Latest News
M&A activities show signs of recovery
13:28 | 04/11/2024 Finance
Fiscal policy needs to return to normal state in new period
09:54 | 04/11/2024 Finance
Ensuring national public debt safety in 2024
17:33 | 03/11/2024 Finance
Removing many bottlenecks in regular spending to purchase assets and equipment
07:14 | 03/11/2024 Finance
More News
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance
Striving for average CPI not to exceed 4%
16:41 | 01/11/2024 Finance
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable
16:39 | 01/11/2024 Finance
Removing difficulties in public investment disbursement
09:30 | 31/10/2024 Finance
State-owned commercial banking sector performs optimistic growth, but more capital in need
09:28 | 31/10/2024 Finance
Stipulate implementation of centralized bilateral payments of the State Treasury at banks
09:29 | 29/10/2024 Finance
Rush to finalize draft decree on public asset restructuring
09:28 | 29/10/2024 Finance
Inspection report on gold trading activities being complied: SBV
14:37 | 28/10/2024 Finance
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%
10:45 | 28/10/2024 Finance
Your care
M&A activities show signs of recovery
13:28 | 04/11/2024 Finance
Fiscal policy needs to return to normal state in new period
09:54 | 04/11/2024 Finance
Ensuring national public debt safety in 2024
17:33 | 03/11/2024 Finance
Removing many bottlenecks in regular spending to purchase assets and equipment
07:14 | 03/11/2024 Finance
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance