Add up revenue from all sales channels to determine tax obligations

Lục Giang |

Revenue generated from sales channels such as stores, websites, social networks and e-commerce platforms must be combined to determine taxable revenue.

Sharing about how to determine tax obligations when selling multi-channel goods, Ms. Nguyen Thi Thanh Hang - Head of the Policy Department on Electronic Invoices (Tax Department) said that multi-channel sales activities are managed uniformly according to one entity. Accordingly, revenue generated from stores, websites, social networks or e-commerce platforms must be added to determine the taxable revenue threshold, not separate each sales channel.

Ms. Hang gave an example, if sales revenue at stores in the year does not exceed 1 billion VND but revenue on e-commerce platforms exceeds 1 billion VND, then the total revenue of business households is still over 1 billion VND and is subject to the corresponding revenue threshold.

However, Ms. Hang noted that the addition and subtraction of revenue is only to determine the revenue threshold of business households, not to mean combining all transactions of industries to create invoices or calculate taxes.

According to her, each sales transaction must still be recorded to make invoices, and the taxable revenue of each type of goods and services will apply the tax rate according to regulations. For e-commerce platforms subject to deductible liability, deducted tax declaration will also be implemented according to separate regulations, but revenue on the platform will still be included in the total revenue of business households.

From the perspective of tax consulting organizations, Ms. Nguyen Thi Cuc - Chairwoman of the Vietnam Tax Consultants Association (VTCA) assessed that in the past time, tax authorities have promptly amended and improved many policies, including innovations in personal income tax and regulations related to electronic invoices.

However, according to Ms. Cuc, the deployment of electronic invoices for e-commerce activities still has some issues that need further research and completion.

She said that currently electronic invoice data is the basis for accounting and determining tax obligations, but in actual e-commerce, payment and delivery of goods do not take place simultaneously. Buyers can pay before or after receiving goods, in cash, by bank transfer or through transportation units.

Meanwhile, many orders on e-commerce platforms are only worth tens of thousands of dong. "If regulations require reviewing all orders on the same day to issue separate invoices, many procedures will arise," Ms. Cuc stated the reality.

From there, she proposed that management agencies study in the direction of combining cash flow management with invoice management. For transactions on e-commerce platforms that have been declared and fully fulfilled tax obligations, invoices should only be created when buyers need to use them for accounting or as documents according to regulations.

For cases where retail consumers do not need to get invoices and tax obligations have been fully fulfilled, it is not necessary to make invoices for each transaction," Ms. Cuc proposed.

On the side of technology solution providers, Ms. Le Thi Nga - Director of E-commerce Block, Sapo Technology Joint Stock Company - said that the new tax policy will promote the digital transformation process of business households.

According to Ms. Nga, previously many business households could still manage orders, revenue or inventory manually. However, when regulations on taxes and electronic invoices require more complete, accurate and transparent data, digital transformation will become an inevitable need.

Multi-channel sales management solutions help synchronize data from stores, websites, social networks and e-commerce platforms on the same system, thereby supporting sellers to manage more effectively, reduce errors in the cross-checking process and fulfill tax obligations more conveniently.

The new tax policy not only contributes to improving compliance but also creates motivation for business households to gradually upgrade their governance models, towards sustainable development," Ms. Nga said.

Lục Giang
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