Shopee, Tiki, Lazada to pay taxes on behalf of sellers
E-commerce platforms like Shopee, Tiki, and Lazada will declare and pay taxes on behalf of partner sellers, according to a Ministry of Finance proposal.
The ministry is set to submit a proposal on amendments to a number of articles in Decree No.126 detailing the Law on Tax Administration, including the above-mentioned change.
According to the ministry, this is an optimal solution for managing tax payments efficiently, contributing to reforming administrative procedures.
With this regulation, instead of hundreds of thousands of individuals directly declaring tax with authorities, the e-commerce platform is the only entity to do so and pay taxes on their behalf to reduce administrative procedures for tax authorities and taxpayers.
The ministry argued that this regulation is not contrary to current regulations under tax laws because all trading activities, from ordering, transportation, payment to settlement of complaints about goods and services are occurring through the e-commerce platform and buyers only make transactions through it.
It said that since last year, the ministry has drafted and consulted with trading individuals and business households on tax management, including the collection of taxes from traders on e-commerce platforms.
The ministry formerly proposed a plan that all e-commerce platforms must pay taxes on behalf of partner sellers to avoid tax loss. However, this proposal raised enormous controvery among companies and experts.
After receiving feedback, the finance ministry proposed to divide e-commerce platforms into two types: platforms with online ordering function and those without this function.
Platforms like Chotot and Batdongsan.com do not directly participate in transactions, but only allow the posting of information on goods and services, so they do not have to declare and pay tax on behalf of partner sellers.
In addition, these e-commerce platforms do not control or have information on revenues, bank accounts, citizen identity information, tax codes, addresses of individual sellers.
In 2020, Shopee had about 210,000 individual sellers, while the figure for Tiki exceeded 8,800 and Voso, over 3,210, according to the General Department of Taxation.
It is estimated with 100 active e-commerce platforms, the number of business individuals must be up to hundreds of thousands.
Vietnam welcomed 1.87 million foreign visitors in the first nine months of the year, up 16.4 times year-on-year, with South Korea and the U.S. leading the pack.
Travel - Sat, October 1, 2022 | 8:26 pm GTM+7
Molex, a U.S. manufacturer of electronic, electrical and fiber optic connectivity systems, has expanded its manufacturing facility in Hanoi with solar panel installation.
Industries - Sat, October 1, 2022 | 6:46 pm GTM+7
State-owned Vietnam Electricity (EVN) has asked Trungnam Group to put the 172-megawatt capacity portion without a pricing mechanism of its 450 MW solar farm in Ninh Thuan into the competitive power generation market.
Energy - Sat, October 1, 2022 | 3:54 pm GTM+7
Spectre, a Danish maker of functional garments for outdoor sports brands, started operating its $17 million factory in An Giang province Friday, the company’s third in Vietnam.
Industries - Sat, October 1, 2022 | 3:06 pm GTM+7
A Dong Thap province court on Friday handed a death sentence to Nguyen Trung Thanh, chief accountant of Filipino-invested Pilmico Vietnam, on corruption charges.
Society - Sat, October 1, 2022 | 2:43 pm GTM+7
An appeal court in Hanoi has reduced the jail term for former deputy minister of health Truong Quoc Cuong to three years, from the four years ruled by an instance court in May.
Society - Sat, October 1, 2022 | 11:05 am GTM+7
Liquidity in the townhouse and villa segment, once feverishly high in both Hanoi and Ho Chi Minh City, has been drying up in recent months.
Real Estate - Sat, October 1, 2022 | 9:50 am GTM+7
American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.
Energy - Fri, September 30, 2022 | 9:24 pm GTM+7
Coro Energy has completed commissioning of its Vietnam rooftop solar pilot project, the UK-based energy firm announced Friday.
Energy - Fri, September 30, 2022 | 6:59 pm GTM+7
Vietnam’s benchmark VN-Index reversed a consecutive five session decline with a six-point gain Friday to close at 1,132 points.
Finance - Fri, September 30, 2022 | 6:30 pm GTM+7
The industrial and logistics market in Ho Chi Minh City, Dong Nai, Binh Duong, Long An, and Ba Ria-Vung Tau will continue to grow in 2022-2023 thanks to Vietnam’s resilient economic expansion, according to Cushman and Wakefield.
Real Estate - Fri, September 30, 2022 | 3:32 pm GTM+7
Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.
Industries - Fri, September 30, 2022 | 3:19 pm GTM+7
Thailand's Central Retail is seeking opportunities to build malls and supermarkets in Binh Thuan province.
Industries - Fri, September 30, 2022 | 3:05 pm GTM+7