Financial industry to tighten e-commerce sales revenue collection | Business

During the recent meeting of the Standing Committee of the National Assembly, a delegate raised the issue of the management of e-commerce activities, saying that e-commerce is a trend and has developed rapidly. Many people use e-commerce to trade contraband, prohibited goods, and tax evasion.

In response to the question, Minister Ho Duc Phoc revealed that the financial sector collected $219,385,102 from internet businesses. In addition, the Minister indicated that over the past year, many large companies have paid taxes such as Facebook having paid VND 1,694 billion, Google having paid VND 1,618 billion, Microsoft having paid VND 576 billion and cross-border e-commerce tax collection reached 1 VND. .317.7 billion

This is the first time that the Vietnamese tax authority has publicly disclosed tax collection figures for transnational tech companies and e-commerce transactions on their platforms. In the years 2017 – 2018, this issue of revenue collection from e-commerce transactions was raised causing many controversial debates.

In this era of science and technology with the 4.0 technological revolution, as well as the convenience of the Internet system, it is the basis for the development of e-commerce that is growing in all countries.

In this Southeast Asian country, although e-commerce is a relatively new field, it has grown rapidly, especially during the Covid-19 outbreak when e-commerce transactions accounted for around 60% commercial activities, according to the ministry. industry and trade data.

Nevertheless, because it is a new type, e-commerce in Vietnam also reveals many shortcomings, especially in state management. Currently, Vietnam is experiencing the loss of tax revenue on existing e-commerce platforms, including cross-border e-commerce and domestic e-commerce.

Tax evaders doing business in cyberspace often find loopholes in current regulations to avoid paying taxes using many different accounts for businesses, leading to inaccurate and very difficult to obtain tax returns revealing many deficiencies in management.

Many social networking sites in foreign countries do not have a legal entity to manage in Vietnam, so it is very difficult to manage. In fact, it is an act of tax evasion.

Besides, there has been a big change in Vietnam’s budget revenue structure in the current period. The proportion of revenue from import and export taxes has decreased a lot, partly because Vietnam has signed many free trade agreements, including many tax incentives, while other sources of revenues in the domestic market have declined significantly.

The southern metropolis is also facing many difficulties due to the impact of the Covid-19 epidemic, not to mention the increased gap between revenue and expenditure in the budget’s fiscal balance, in part because the government must proposing unprecedented recovery and economic recovery plans. In this context, the tax levied on e-commerce will be an important source of revenue to fill the budget gap.

Recently, the General Tax Department also launched the electronic portal for foreign suppliers and the eTax Mobile application. Foreign suppliers can register, declare and pay taxes, search for information through the portal, and learn about the tax legal system and related legal policies on tax law and e-commerce in Vietnam.

However, it is also an effective tool for tax authorities to control income from e-commerce transactions, including cross-border transactions. On the other hand, it also helps to make e-commerce between individuals and businesses more transparent and fair.

By Associate Professor Dinh Trong Thinh – Translated by Anh Quan

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