Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Prime Minister Pham Minh Chinh made a speech. Photo: VGP

Ministry of Finance reviews e-commerce issues

On June 10, Prime Minister Pham Minh Chinh chaired a meeting to review the first year of efforts to remove bottlenecks in the implementation of Project 06 and promote data connection and sharing to support e-commerce development and combat tax evasion.

In his opening remarks, Prime Minister Chinh acknowledged the tangible and practical outcomes of Project 06, which focuses on developing population data applications, electronic identification, and authentication for 2022-2025 with a vision to 2030. These achievements have enhanced management and governance at all levels, promoted socio-economic development, and provided conveniences for citizens and businesses.

The Prime Minister emphasized the need to address bottlenecks and issued a Directive mandating the synchronization of population data with tax, banking, and telecommunications data. This will enable the electronic identification and authentication of individuals and organizations, preventing fraud and tax evasion in e-commerce, digital platform-based businesses, and cross-border trade.

While acknowledging the notable achievements of Project 06, the Prime Minister cautioned against complacency and urged for a frank and objective assessment, avoiding embellishment or exaggeration. This approach is crucial for developing effective solutions to address challenges, overcome obstacles, and rectify shortcomings.

Minister of Finance Ho Duc Phoc. Photo: VGP

At the Conference, reporting on the results of one year of implementing Directive 18/CT-TTg of the Prime Minister and the management of e-commerce tax in Vietnam, Minister of Finance Ho Duc Phoc said that the Ministry of Finance has stepped up and shared e-commerce data, combat tax evasion, and has advised the Prime Minister to issue Directive No. 56/CD-TTg on June 6, 2024, requesting ministries and localities to continue to strengthen the state management of e-commerce and business on digital platforms.

Minister Ho Duc Phoc also reported on some contents that the Ministry of Finance has been implementing drastically and achieving positive results. In terms of legal perfection, the Ministry of Finance is implementing electronic identification and authentication; implementing government decrees and reviewing e-commerce-related issues.

In addition, according to the Ministry of Public Security's report, the Ministry of Finance has completed the decree on regular expenses for projects and the decree on public service prices, which have been submitted and are waiting for the Government to issue. The Ministry of Finance has allocated capital to the Ministry of Defense, the Ministry of Public Security and the Prime Minister has also made a decision on this issue. Other ministries and branches will follow the registration from the beginning of the year. According to the Minister, the reason for not yet allocating and reporting to the Standing Committee of the National Assembly is because it is waiting for the Decree on regular expenses.

The Minister also raised two existing problems. Firstly, some localities have not yet developed a digital transformation plan and implemented e-commerce and information technology development. In terms of budget decentralization, local budgets must be used, but there are localities with weak budgets, so the State must support them. Secondly, some ministries and branches have not registered from the beginning of the year, so there is no basis for budget allocation. After the ministries and branches have proposals, the Ministry of Finance will propose to the Prime Minister to use a part of the budget reserve to grant this part.

1.34 million e-invoices have been issued in the gold business

Regarding data sharing and construction, according to the Minister of Finance, as of June 3, 2024, the sharing of tax data and identification tax codes based on citizen ID cards has reached 97.57%. This is a positive development for the Ministry of Finance, as it requires data cleaning, data collection, and appropriate technology before sharing.

The Ministry of Finance has also shared data on 929 e-commerce exchange floors with the Ministry of Industry and Trade. This corresponds to 847 businesses that own e-commerce exchange floors (one business can own multiple floors) and 284 online sales applications. The Ministry has also agreed with the Ministry of Information and Communications on a list of data to be connected and shared with the tax authorities (Ministry of Finance) by 130 organizations operating in the fields of telecommunications, advertising, radio, and television.

Regarding registration and tax declaration, the Ministry of Finance has applied electronic identification and authentication to individuals who register for tax declaration and payment; digital signature services, telecommunications, domain names; individuals who open payment accounts at commercial banks and credit institutions; and is encouraging e-commerce exchange floors to apply this to organizations and individuals doing business on the floors.

Regarding the result of tax management in e-commerce, the Ministry of Finance has implemented e-invoices initiated from cash registers. To date, 61,009 businesses have applied e-invoices initiated from cash registers with 464.8 million invoices.

Regarding the use of e-invoice in the gold trading sector, 100% of businesses (9,419 businesses) in the gold trading sector have applied e-invoices connected to the tax authorities following Decree No. 123/2020/NĐ-CP of the Government, of which 7,225 businesses and gold and silver trading establishments have used 1.34 million e-invoices.