Many tax management solutions for e-commerce

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In 2023, e-commerce management revenue is VND3.5 million billion and the amount of tax paid is VND97 trillion. Photo: ST

The Ministry of Finance and the General Department of Taxation have made efforts to implement many short-term and long-term solutions to strengthen tax management for domestic and cross-border e-commerce activities.

According to Deputy Director General of the General Department of Taxation Mai Son, the Tax sector has advised the Government and the National Assembly to promulgate a number of legal documents on taxes to strengthen the legal basis for tax management for e-commerce activities, strengthening the responsibility of ministries, agencies and e-commerce platform owners, foreign suppliers and their partners in Vietnam. At the same time, deploying information technology (IT) applications to create favorable conditions for organizations and individuals doing e-commerce business to carry out tax procedures electronically. In particular, the web portal for foreign suppliers has officially been operated to support foreign suppliers in performing tax registration, declaration and payment from anywhere in the world. Up to now, there have been 94 foreign suppliers declaring and paying a tax amount of over VND14.5 trillion.

The Tax sector has also implemented inspection and examination on groups of taxpayers with activities related to the field of e-commerce and business on digital platforms to prevent tax loss.

Following Directive No. 18/CT-TTg dated May 30, 2023 of the Prime Minister on promoting data connection and sharing to serve e-commerce development, prevent tax loss, and ensure monetary security, the Ministry Finance (General Department of Taxation) has also been closely coordinating with relevant state management agencies in the field of e-commerce to deploy many solutions.

According to Mr. Vu Manh Cuong, Director of Hanoi Tax Department, from the end of 2023 and early 2024, the Hanoi Tax Department has focused on tax management for e-commerce activities towards digitalization.

“From the beginning of 2024, the Hanoi Tax Department has developed a plan to inspect and examine e-commerce topics in 2024 for 2,342 organizations and individuals. As initial results, the Hanoi Tax Department has reviewed and issued decisions and notifications for 1,749 organizations and individuals. As a result, 921 organizations and individuals were fined, increasing VND104 billion to the State budget, reducing deductions by VND43 billion, and reducing losses by VND59 billion," Mr. Vu Manh Cuong said.

Besides the advantages, a number of difficulties and obstacles in the management of e-commerce activities have been pointed out by the Tax sector such as: connection of the national population database with the database and information systems of ministries and central and local agencies has not yet synchronized; most ministries, central and local agencies are still slow in implementing electronic identification and authentication; synchronizing population data with civil status, tax, banking, telecommunications data is making it difficult to identify and authenticate individuals and organizations to prevent tax fraud and evasion in e-commerce activities…

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To strengthen e-commerce tax management, Mr. Mai Son said that the Tax sector will continue to improve policy mechanisms to cover all e-commerce activities, creating favorable conditions for tax declaration and payment, and use of electronic invoices for organizations and individuals doing e-commerce business. At the same time, strengthening communication and support for taxpayers such as: organizing direct dialogue with taxpayers, setting up a 24/7 hotline, conducting communication through embassies and foreign business associations in Vietnam and large tax consulting units; coordinating with Vietnam e-commerce trading floor to guide foreign organizations and individuals doing business through the floor to register tax, declare and pay taxes on the e-commerce portal of the General Department of Taxation. Along with that, the Tax sector strengthens the e-commerce database and applies risk-based management; continues to modernize tax collection and payment management; promote coordination, connection, and information sharing between ministries and agencies within the framework of implementing Directive 18/CT-TTg.