On September 27, at the regular press conference for the third quarter of 2024, Mr. Dang Ngoc Minh - Deputy Director General Directorate of Tax shared his views on the opinion that e-commerce platforms paying taxes to sellers is contrary to international practice.
Mr. Minh said that the regulations on tax management are being compiled with opinions from all parties, aiming to submit a Decree amending Decree 132 in the fourth quarter of 2024.
"The solutions that we have proposed to the Government to submit to the National Assembly are solutions to enhance the effectiveness of tax management, especially in the context of the digital economy and the strong growth of e-commerce.
According to Directive 18 of the Prime Minister, the financial sector has coordinated with functional sectors to enhance the effectiveness of tax management," said Mr. Minh.
Mr. Minh said that in the Law on Tax Administration, the tax authority wants to propose a solution to coordinate and regulate the responsibilities of e-commerce platforms in implementing coordination. First of all, Decree 91 stipulates the responsibility of e-commerce platforms to provide information to the tax authority. All parties involved, for the benefit of the budget, must be responsible for providing information to the tax authority to effectively implement tax management.
According to Mr. Minh, now taking one more step, which is to declare instead, is a concrete solution, a measure to increase management efficiency.
"Currently, in the Law on Tax Administration, foreign suppliers (FCs) not present in Vietnam are responsible for declaring and paying on their behalf at the information portals of Vietnam and the Tax Directorate open to FCs.
Up to now, 108 foreign enterprises such as Google, Facebook, etc. have had to declare. Therefore, applying the declaration regulation to domestic enterprises is a regulation to ensure fairness.
It is impossible to regulate and only NCCNN can implement. If NCCNN can do it, there is no reason why domestic e-commerce platforms cannot do it.
I think that, technically, once the State regulates, e-commerce platforms can declare taxes on behalf of people," Mr. Minh emphasized.
According to the representative of the Tax Directorate, e-commerce platforms are currently strictly managing the business of people and businesses on the platform. Managing revenue and payment transactions. The benefits of the platforms are also linked to that management. Through interviews with domestic e-commerce platforms, business directors also affirmed that when the State regulates, it can be implemented.
"The technological conditions are available, so institutionalizing it in the Law is possible," said Mr. Minh.
Sharing more about this issue, Deputy Minister of Finance Nguyen Duc Chi said that e-commerce is currently developing strongly, so we need to change the tax management method. Applying the new proposal will be difficult, the Ministry of Finance requires its affiliated units to listen to business opinions to choose effective and suitable solutions.
