Illustrative image (Source: expertbeacon.com)Hanoi (VNA) – Cross-border e-commerce management should be integrated and synchronous to ensure equality and transparency, said Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management (CIEM).
Hieu told a conference on management policies on cross-border e-commerce services held in Hanoi on October 26 that management should clarify the essence of e-commerce transaction floors. The conference aimed to discuss how to regulate websites and applications providing cross-border e-commerce services.
“Investors in foreign countries have more advantages than local firms. Therefore, State management agencies should have solutions to ensure equality, order and transparency while not restricting business activities,” he added.
In recent years, Vietnam has seen the a rapid boom of companies specialising in e-commerce, especially in Hanoi and HCM City. The two cities have highest turnover of online advertisement and shopping in the country. However, tax collection from the e-commerce businesses has not been equal to real turnover.
Tax agencies in the cities found and collected several hundreds billion dong of tax evasion from e-commerce firms after investigations.
Tax agencies have faced difficulties in clarifying turnover, costs and incomes on e-commerce activities to manage the tax collection in comparison with traditional firms.
Experts also discussed tax policy, specifically the difference between electronic tax payment and tax exemption for the e-commerce businesses. Nguyen Thi Cuc, former Director of the General Taxation Department and Chairwoman of Tax Consultancy Association, said management and investigations in cross-border e-commerce sectors have seen challenges, requiring a more complicated process than normal firms.
Cuc said investigations and check-ups need support from credit organisations and relevant agencies to define payment flows. He added that the process should implement transaction numbers as a foundation for determining tax arrears.-VNA
