Strengthen the tax administration for e-commerce

On October 01, 2022, the Prime Minister issues Telegram No. 889/CD-TTg on strengthening the efficiency of tax collection administration for e-commerce and digital business.

With the development of the digital economy, the digital business is more popular, the revenue of Vietnam’s e-commerce is estimated to be USD 13,7 billion, increased by 16% compared with 2020 and take 6.5% compared with the total retail revenue.

The rapid development of many new forms of e-commerce and digital business make new challenges in state management, including tax collection administration.

In order to continue to improve the efficiency of tax collection administration in e-commerce and digital business activities, the Prime Minister requires to focus on performing a number of tasks.

- The Ministry of Finance takes prime responsibility and coordinates with the Ministries and agencies to implement a number of solutions for the implementation of the Strategy for reform of the tax system through 2030 prescribed in the Decision No. 508/QD-TTg dated April 23, 2022, within that, including the solutions for strengthening the tax administration for e-commerce.

At the same time, strengthen the propagation, support individuals in business and e-commerce to declare and pay taxes in accordance with law provisions, guide foreign suppliers to comply with the legal regulations during the time of doing business in Vietnam; set up a tax administration database for e-commerce...

- The Ministry of Justice urgently comments on drafting the Decree on amending the Decree 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration which prescribes the amendments on tax administration for e-commerce.

- The Ministry of Information and Communications shall corporate with the Ministry of Finance and relevant agencies in building the legal normative document system in order to complete the legal base for suspending and revoking the online operation license for units that have tax violations.

- The Ministry of Industry and Trade shall research and complete the legal base for creating favorable conditions for the tax administration in individual’s business activities on the e-commerce trading floor; corporate with the Ministry of Finance to share a database, and connect information for state management on e-commerce activities.