Log in
Business

Hanoi tax revenue from e-commerce surges by five times

Increasing online shopping has resulted in higher tax revenue.

The amount of tax collected from e-commerce activities in 2020 was five times higher than in 2019, as online shopping has become more popular among Hanoi’s consumers, according to the Hanoi Tax Department.

 Hanoi tax revenue from e-commerce surges by five times in 2020. Photo: Cong Hung

The city earned a VND123 billion (US$5.3 million) tax revenue from e-commerce last year. Some individuals willingly declared their earnings and paid millions of dollars in personal income taxes.

Last year, the tax authorities have tightened supervision over e-commerce activities in accordance with the amended Law on Tax Administration, which requires individuals doing business via internet to declare income and pay tax. The law took effect  on July 1, 2020. 

A 28-year-old girl, in Cau Giay district, declared an income  of VND330 billion (US$14.4 million) and paid VND23.4 billion (US$1 million).

A man, 30 years old, in Cau Giay district, earned VND260 billion (US$11.3 million)  from writing applications for Google Play and App Store, and paid tax of VND18.1 billion (US$787,342).

“Online selling has developed well in recent years. Among online businesses, a lot of young individuals, especially students have also applied technology to do business, profited from the model and paid a huge amount of tax,” Director of the Tax Sub-Department of Cau Giay district Le Quang Hung said. “In this difficult context, it is a great contribution of taxpayers to the socio-economic development of the city.”

This year, the municipal Tax Department continues to coordinate with commercial banks and trading platforms to collect data and instruct e-commerce operators to fulfill their tax obligations, Director of the Hanoi Tax Department Mai Son said.

The department will also enhance the supervision of income for better tax collection. The law  stipulates that credit institutions and commercial banks should provide information about taxpayers’ accounts to the taxation department.

In 2017, the department sent 13,000 messages to subscribers who posted physical addresses for selling goods on social media.  As the result, more than 2,000 traders on social networks have registered for tax filing.

Reactions:
Share:
Trending
Most Viewed
Related news
Vietnam International Financial Center to rise in HCMC and Danang

Vietnam International Financial Center to rise in HCMC and Danang

The establishment of an international financial center will give the Vietnamese economy a major boost.

Second round of Vietnam-US trade talks underway

Second round of Vietnam-US trade talks underway

Vietnam was among a group of six economies out of over 100 countries selected by the US for trade negotiations.

Expanded modern retail chains fuel presence of Vietnamese goods

Expanded modern retail chains fuel presence of Vietnamese goods

Local economists believe that the surge in modern retail locations will stimulate domestic consumption and enhance market access for Vietnamese products.

Vietnam to cut 30% of business conditions this year

Vietnam to cut 30% of business conditions this year

Digital transformation will be adopted by agencies to minimize processing times for administrative procedures related to land use, planning, investment, construction, taxation, customs, and more.

Government taps private sector in new national wealth creation strategy

Government taps private sector in new national wealth creation strategy

The government will continue to facilitate, rather than control, the development of the private sector.

Policymakers ratifies resolution on private sector development

Policymakers ratifies resolution on private sector development

The private sector, including business households, currently contributes around 51% of GDP and over 30% of the state budget.

Private sector needs breakthrough solutions to thrive

Private sector needs breakthrough solutions to thrive

Stable policy implementation and supporting mechanisms are important for businesses to resolve commercial disputes and international integration.

Vietnam to offer substantial incentives for home businesses 

Vietnam to offer substantial incentives for home businesses 

This move is expected to help Vietnam achieve its national target of having two million businesses by 2030.