Sharing his view with the Economic & Urban Newspaper, the deputy head of Hanoi Department of Taxation, Mr. Vien Viet Hung informs that the tax collection for e-commerce business will not be an unfinished work but implemented step by step, ensuring the fairness between tax payers.
Mr. Vien Viet Hung - Deputy Head of Hanoi Department of Taxation
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Hanoi Tax department has sent messages requesting individual and organization in related to e-commerce business to declare tax. What is the progress until now?
Law on Tax management stipulates that both individual with online shop and physical shop (with specific address) have to declare tax. There is no exception for individual using social network as a sale channel. If the revenue is over 100 million VND per year, the subject will have to declare and pay tax.
As of June 19, Hanoi Tax Department has received positive responses from online shop owners in the process of declaring tax and returning survey question to the Department. This shows the awareness of citizens with regard to the obligation for tax payment.
However, there remains confused online shop owners, who has not understood the difference between tax declaration and tay payment. Moreover, they are not sure on how to determine their incomes and what kind of taxes are payable.
Hanoi Tax Department has identified 13,422 accounts doing online business. After sending 02 messages and informing owners, approx. 1000 accounts responded. About half of them has declared tax.
In principle, tax payers will have to declare tax, while tax agencies will monitor their obligation in accordance to the Law.
One of the most confused issues is how to ensure the transparency, fairness and clarity of income determination for individual and organization in e-commerce business. What is the measures of the agency to deal with this?
In order to ensure the accuracy and fairness, information collection is very important. Hanoi Tax Department is using IT to collect information, and cooperate with related agencies to ensure as much accurate as possible.
At present, the Department is working with related agencies and services providers to set up measures and plans. This will not be an unfinished work but implemented step by step with sufficient information and instruction disclosure, aiming toward the fairness between individual declared tax and not.
How to determine revenue?
So how can the tax agencies know the number of transaction to collect tax, as some only advertise and the remains do business without receipt?
The characteristic of e-commerce business is based on the IT platform. Therefore, the Tax Department should use IT as instrument for tax management. It requires efficient measures and improved tax management for the benefit of enterprises and citizens.
Online businesses in social networks are becoming more popular.
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During this process of tax collection, will the Tax Department cooperate with Facebook, Zalo and other social networks to have more accurate information for tax collection?
It is necessary to work with social networks. Tax department will consider this in the process of building mechanism for information exchange.
At present, Hanoi Tax Department has publicized information with regard to tax obligation for online shop owners. However, if they fail to fulfil their duty, how is the process of disable and lock the account?
On June 19, Hanoi Tax Department has sent messages to online shop owner with instruction for fulfilling tax obligations. In order to manage the online business, citizens should also understand their responsibilities. The Tax agency only focus on instructing, supporting and encouraging online shop owner to register their businesses and fulfil their obligation to the State voluntarily. At the same time, the agency will monitor and check on cases deliberately not declaring tax in accordance with the Law.
Thank you!
Responsibilities of tax payers are to correctly declare tax. If found tax evasion or fraud, the subject will be punished in accordance with the Law - the Deputy head of Hanoi Department of Taxation, Mr. Vien Viet Hung.
