The tax management of e-commerce business is still a thorny problem for tax authorities to solve. In order to solve problems, it must have specific regulations related to laws along with specific sanctions.
E-commerce business is a new type of business which is growing rapidly in many countries around the world. E-commerce has outstanding advantages over traditional business forms, that are to with supply flexibility and reducing expenses for partners, and contributing to promoting competition between enterprises.
In Vietnam, recently, e-commerce has developed strongly under the form of trading goods, providing services and advertising… via television, e-commerce website, e-commerce trading floor, social media.
According to General Department of Tax, regarding to mechanisms and policies, the current Tax Administration Law has created a foundation and allows Tax authorities to take an initiative in managing taxpayers who paid business tax in traditional business environment and e-commerce through critical points, such as with the self-declaration & self-payment mechanism; obligation of providing information of a third party (including information in the form of electronic data), tax administration modernization (encouraging the implementation of electronic transactions).
However, in order to actually promote e-transactions in general and e-commerce in particular, it must at the same time facilitate taxpayers, expand the tax collection bases and ensure the prevention of negative consequences. It needs to have specific regulations and tax administration measures as required for this new business form.
As a result, the revised Law on Tax Administration has added provisions related to tax administration to e-commerce activities toward the direction of building databases and widespread deployment of electronic services such as online tax declaration, electronic invoice, online tax payment, thus it could ensure that taxpayers can access and catch up with e-commerce.
At the same time, the draft Law on Tax Administration (Amendment) clarified the responsibilities of ministries and branches in the tax management for e-commerce business activities. However, it could not be expected that the amendment of a law could overcome the situation of difficult management and loss of revenue in tax collection in the area e-commerce business.
Evaluating on the new regulations for e-commerce business, Mr. Dau Anh Tuan, Director of Legal Affairs Department, VCCI, said that the draft Law on Tax Administration this time, has taken a big step and has absorbed and adjusted practical issues arising, and is moving in line with the orientation of the Government's reform of administrative procedures and for serving the needs of development of the business operation.
Furthermore, according to Mr. Diem Anh Tuan, regarding to the tax administration with online business, the draft law has solved the big problem that is: an operating business has to pay taxes, thereby creating equality between the components of the economy. The problem of collecting online business taxes is a thorny problem not only for Vietnam but also other countries in the world. Therefore, legalization is very important because it creates the legal basis for the state authorities to strengthen the coordination in the management.
In fact, many sellers as well as small and medium enterprises have exploited the internet platforms through channels such as Google, Facebook ... in order to operate their business. Therefore, according to Mr. Tuan, the role of the State is not to prohibit or restrict, it is for the encouragement for enterprises to develop, while ensuring the implementation of tax administration in accordance with its competence.
However, VCCI representatives also acknowledged that the tax collection of these models is very difficult because they could not find a correct and consistent understanding of this new business model. For example, Grab, which has been implementing a pilot model for the past two years, still has a different understanding, not only among business units, but also within the Government, and among the ministries such as the Ministry of Transport, Ministry of Justice or relevant authorities.
"Therefore, it is necessary to discuss, to exchange and learn from other countries' experiences and to carry out pilot policies in a narrow scope. For example, different cities apply different taxation models. As a result, the state has found a management model that promotes both the development and the efficiency of state management and tax collection, and then replicates the model nationwide," the VCCI representative said.
In addition, Mr. Dau Anh Tuan also said that in order to manage e-commerce business taxes, many laws need to be amended to solve the roots of the problem. At the same time, it needs to have a regulation for restricting the use of cash, and a mechanism for sharing information between the State authorities so that they can manage taxpayers properly.
Source: VCN
Key words: manage, e-commerce business tax, amend, regulations, resolving, roots, problems
