Will encompass the tax management of e-commerce

12:39 | 11/02/2017 Finance Follow english.haiquanonline.com.vn on

VCN - At a regular press conference of Government in January, on February 3, 2017, the Deputy Minister of Finance, Mrs. Vu Thi Mai had the answers regarding tax payment of the online booking service.

se bao quat het viec quan ly thue trong thuong mai dien tu

The operation of online booking service in Vietnam will have to be paid tax in accordance with regulations. Source: Internet

Accordingly, on 18^th January, the Ministry of Finance issued document No. 848/BTC-TCT about guiding on tax policy and tax administration related to the business operations of online booking service.

Thus, public opinion raised issues of tax administration for companies which have online booking sites but their headquarters are located overseas. Therefore, Deputy Minister of Finance, Mrs. Vu Thi Mai said that, document No. 848/BTC-TCT is aimed to direct and request tax authorities to review for checking, controlling and strict management for online booking businesses.

Before releasing this document, Value added tax (VAT) law and corporate income tax (CIT) law has clearly identified subjects to be taxed. For contractors who derive income from Vietnam will have to pay foreign contractor tax that is VAT and corporate income tax, especially for companies that have online booking sites.

Moreover, according to Deputy Minister Vu Thi Mai, the document provides guidance, for the facility, if they don’t pay taxes according to the deduction method, which means that the output minus input, pay VAT and income tax payment on total revenue except expenses, they shall pay tax by a percentage of sales, in that 5% VAT, corporate income tax is 5%.

Regarding the question of sanctions, if these companies do not pay taxes, the Deputy Minister of Finance stated, the provisions in the Tax Administration Act stipulate that for companies established in Vietnam, signed contract work with foreign organizations and individuals overseas, the company must have deductions and paid for individuals and organizations overseas. Otherwise, the company itself in Vietnam must be responsible, and shall be punished as stipulated in the Law on Tax Administration.

"Thus, the sanction for the organization doing business of online booking reservation has been set very clearly. However, the Ministry of Finance found that e-commerce is the new business sector so that they must conduct further research to cover all new transactions in order to manage tax in that business better", Deputy Minister Vu Thi Mai said.

The use of revenue from environmental taxes is done openly and transparently

Regarding the proposal to increase environmental protection tax (EPT) in every liter of petrol increased from 3,000-8,000 VND/liter in the draft Law on Environmental Protection (revised) of the Ministry of Finance, there are many opinions claimed that, if the proposal was approved, it would cause a strong impact on the market, which could push the fuel price to hit a strong record, and cause difficulty for businesses and citizens. Moreover, there is expert opinion asserting that the tax rate is higher than the current tariff and the increased tax may not help to keep the environment cleaner, and questions about the issues of transparency in revenue resource and expenditures by using money collected from environmental taxes.

Minister - Chairman of the Government Office - Government spokesman, Mr. Mai Tien Dung said that the current EPT stipulated the tax bracket for petrol is between 1,000-4,000 VND and the Standing Committee of the National Assembly is the competent authority to decide on specific tariffs for each period in line with economic conditions - social and environmental protection policy of the State (now the National Assembly Standing Committee decision on environmental protection duties for petrol is 3,000 VND/liter).

The Ministry of Finance proposed to adjust the tax bracket rate of EPT for petrol from 3000-8000 VND/liter is under drafting process and consulted widely by ministries, branches, localities, organizations and associations corporate, business and citizens, not present to the Government for consideration and discuss this issue.

Under the provisions of the Law on Promulgation of Legal Normative Documents, when the draft Law on Environmental Protection (revised) is prepared, the Ministry of Finance must complete and explain to collect the opinions of organizations, businesses and citizens; comprehensive assessment of the positive impact, the negative of economic policy - society in the short and long term ... to report to the Government for consideration and discussion before being presented to the National Assembly for decision.

The use of revenues from EPT in general and EPT for petrol in particular is done openly and transparently in accordance with the provisions of the State Budget Law and the Law on Environmental Protection.

By Hương Dịu/Thanh Thuy

Tags:

Related News

E-commerce tax collection in Hanoi increased by 265%

10:28 | 13/10/2024 Finance

VCN - As of August 2024, the Hanoi Tax Department has built a tax management directory for e-commerce business activities including more than 75,000 organizations and individuals. In particular, there are more than 37,000 business households and more than 9,000 individuals.

Insurance companies adapt to e-commerce trends

09:30 | 11/09/2024 Import-Export

VCN - Travel insurance, cargo insurance, shipping insurance… have become popular services in online shopping transactions. Therefore, insurance companies are adapting this trend and expanding their customer data.

Ho Chi Minh City: Many violations in e-commerce business

10:19 | 25/08/2024 Anti-Smuggling

VCN - Since the beginning of the year, Ho Chi Minh City authorities have inspected and detected many violations in online sales.

Policies of goods quality inspection need to facilitate and prevent fraud

09:43 | 17/08/2024 Regulations

VCN - With the strong development of international e-commerce, individuals in Vietnam can easily order goods through websites, and goods are shipped to Vietnam through express delivery companies. Therefore, there needs to be specific policies for cases exempted from quality inspection.

Latest News

M&A activities show signs of recovery

13:28 | 04/11/2024 Finance

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.

Fiscal policy needs to return to normal state in new period

09:54 | 04/11/2024 Finance

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.

Ensuring national public debt safety in 2024

17:33 | 03/11/2024 Finance

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.

Removing many bottlenecks in regular spending to purchase assets and equipment

07:14 | 03/11/2024 Finance

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Continue to handle cross-ownership in banks

10:35 | 02/11/2024 Finance

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.

Striving for average CPI not to exceed 4%

16:41 | 01/11/2024 Finance

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

16:39 | 01/11/2024 Finance

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...

Removing difficulties in public investment disbursement

09:30 | 31/10/2024 Finance

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.

State-owned commercial banking sector performs optimistic growth, but more capital in need

09:28 | 31/10/2024 Finance

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

09:29 | 29/10/2024 Finance

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.

Rush to finalize draft decree on public asset restructuring

09:28 | 29/10/2024 Finance

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.

Inspection report on gold trading activities being complied: SBV

14:37 | 28/10/2024 Finance

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

10:45 | 28/10/2024 Finance

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.

Your care

Latest Most read