Will encompass the tax management of e-commerce

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 18th 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

Related News

Take advantage of e-commerce leverage for export

Take advantage of e-commerce leverage for export

VCN - Exporting via e-commerce is gradually becoming popular and becoming a trend that many businesses are interested in.
Personal Income Tax Law to be amended in 2025

Personal Income Tax Law to be amended in 2025

VCN - On March 29, answering questions from the press at the Ministry of Finance's regular press conference for the first quarter of 2024, the leader of the Department of Management and Supervision of Tax, Charges and Fees Policy (Ministry of Finance) said, continue to focus on drastically implementing solutions to support businesses that the National Assembly and the National Assembly Standing Committee have approved; At the same time, closely monitor the situation to research and advise competent authorities on appropriate solutions.
It is necessary to build a national database on cross-border trade and transport

It is necessary to build a national database on cross-border trade and transport

VCN - Build a national database on cross-border trade and transport to store and share information to facilitate cross-border trade and transport as well as improve the efficiency and effectiveness of state management.
Tax sector implements solutions on revenue management to achieve “dual goals”

Tax sector implements solutions on revenue management to achieve “dual goals”

VCN – Sharing direction of ta management in 2024, Mr. Mai Son, Deputy Director General of Taxation said that the Tax sector has implemented solutions to achieve “dual goals” of completing the revenue target while supporting enterprises in operation and economic growth.

Latest News

Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

VCN - The revised Draft Law on Value Added Tax (VAT), besides inheriting many provisions from the current Law, also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund.
Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).

More News

Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

VCN - The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

VCN - According to forecasts, Vietnam's financial sector in 2024 will be more positive, with the exchange rate gradually cooling down from the end of the second quarter of 2024, while interest rates will remain low to promote growth.
Majority of credit institutions forecast profit growth in 2024

Majority of credit institutions forecast profit growth in 2024

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).
Central bank plans to auction gold bars on April 22

Central bank plans to auction gold bars on April 22

The State Bank of Vietnam (SBV) will auction SJC-branded gold bars on April 22, a representative of the central bank said on April 19.
Old loans must endure higher interest rates temporarily: central bank

Old loans must endure higher interest rates temporarily: central bank

The average lending interest rate for new loans by commercial banks is reported at around 6.4% per year, a decrease of 0.7 percentage point per year compared to the end of last year. However, borrowers with loans issued before the latest rate adjustment still must pay higher rates, according to the State Bank of Vietnam (SBV).
State-owned enterprises flourished

State-owned enterprises flourished

VCN - The production and business situation in the first quarter of 2024 of the state-owned enterprise sector continues to have many bright spots with many financial targets completed or exceeding the set plan. This is the premise for positive business results in the second quarter and the whole year 2024.
Forum discusses support for women-owned firms ​to join supply chains

Forum discusses support for women-owned firms ​to join supply chains

A forum on supporting women-owned businesses to join supply chains through sustainable development tools took place in Hanoi on April 17.
Ensure savings and prevent losses in disbursement of public investment

Ensure savings and prevent losses in disbursement of public investment

VCN - The practice of thrift and combating waste in the management and use of public investment is one of key tasks in the program of thrift practice and waste combat in 2024 of the Ministry of Finance.
Implementing unprecedented fiscal policies to actively support people and businesses

Implementing unprecedented fiscal policies to actively support people and businesses

VCN - Implementing fiscal policies to support the economy, the Ministry of Finance has advised and offered many unprecedented solutions to reduce taxes, fees and charges, thereby supporting people and businesses to overcome difficulties, restore production and business. According to assessments, in 2024 fiscal policy will continue to be a positive highlight for the economy.
Read More

Your care

Latest Most read
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electr
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

The revised Draft Law on Value Added Tax (VAT) also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund
Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
Mobile Version