Tax from e-commerce activities increases

Tax declared from e-commerce activities had been increasing, reported the General Department of Taxation.
Tax from e-commerce activities increases ảnh 1Online sales on Facebook. (Photo: enternews.vn)

Hanoi (VNS/VNA) - Tax declared from e-commerce activities had beenincreasing, reported the General Department of Taxation.

Specifically,the total amount of tax paid by Vietnamese organisations that had signed onlineadvertising contracts with foreign organisations and paid on behalf of thosefirms reached 46.86 billion VND (2 million USD) in 2016.

That amountincreased to 90.48 billion VND in 2017, 151.77 billion VND in 2018 and morethan 1 trillion VND last year. In the first nine months of this year, the taxpaid hit 745.6 billion VND.

Vu Manh Cuong,Director of the Inspection Section under the General Department of Taxation,said these results showed that tax administration for e-commerceactivities had become increasingly focused.

The GeneralDepartment of Taxation had directed tax departments, especially those inbig cities such as Hanoi and HCM City, to review and request taxpayers toregister, declare and fulfill tax obligations towards the State.

Dang NgocMinh, Deputy Director of the General Department of Taxation, said one ofthe key tasks for tax agencies was to strengthen inspections for thee-commerce sector.

Cuong saidthat due to their specific nature, e-commerce business activities took placemainly in big cities such as Hanoi and HCM City.

Therefore,the general department had directed the cities to actively co-ordinatewith commercial banks to control cash flow from overseas organisationsand individuals, and strengthen inspections to combat losses to Statebudget revenue from e-commerce business activities, he added.

In Hanoi,since 2017, the tax department has reviewed and sent SMS notifications to13,422 Facebook accounts involved in online sales. Up to now, over 2,000individuals have registered and been issued with a tax identification numberthey use to declare and pay taxes. The total taxes and fines collectedfrom this type of business totalled more than 22.7 billion VND.

For organisationsand individuals with incomes from foreign social networks (Google, Facebook,YouTube), through data from joint-stock commercial banks, there were more than 18,300back accounts holding 1.46 trillion VND, said Cuong.

The GeneralDepartment of Taxation was currently cooperating with the State Bank of Vietnamto collect data for accounts with cross-border transactions, he added.

At the sametime, the tax sector had trained inspectors on anti-transfer pricing, said thedirector.

In thecoming time, they would focus on providing professional guidance to allofficers engaged in inspections to conduct electronic supervision for 63tax departments, said Cuong./.
VNA

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