TAX MANAGEMENT FOR E-COMMERCE

According to the Law on Tax Administration No. 38/2019/QH14, there are stricter regulations related to tax administration for e-commerce activities. For example: For an e-commerce business, business on digital platforms, and other services performed by an overseas supplier who does not have a permanent establishment in Vietnam, the overseas supplier is responsible for the following: Directly or authorized to carry out tax registration, tax declaration and tax payment in Vietnam.

Some tasks need to be implemented, specifically:
– To manage tax collection for e-commerce businesses, it is necessary to have a comprehensive information technology solution, suitable for the new, complex, and specific management of the type of e-commerce business. In addition to continuing to develop applications according to traditional technologies as before, it is necessary to study and bring advanced and outstanding achievements of the 4.0 technology system, which is a strong development trend in the world, into support. Supporting tax administration, especially in detecting, warning, monitoring, and urging taxpayers to do business in the field of e-commerce.
– Expanding the concept and definition of tax policy (permanent establishment) under new Laws and Agreements to add cross-border commercial business subjects to taxable categories.
– It is necessary to have close cooperation with other ministries and branches to get complete information in the management of e-commerce business objects and the management of tax declaration, collection, and payment.
– The Ministry of Finance (General Department of Taxation) will develop a simple tax registration process (open on the website of the General Department of Taxation, application system to guide foreign organizations and individuals having online business activities). Income in Vietnam may register for tax to be granted a tax identification number and declare and pay tax online).

Law on Tax Administration 2020