The General Department of Taxation requires e-commerce platforms to promote money flow tracing

DNHN - The General Department of Taxation requires Tax Departments to review, classify, monitor and regularly update information about companies conducting business activities and generating income from various forms of business in the field of commerce. e-commerce within the management area.

To implement the solutions in the project "Tax management for e-commerce activities in Vietnam" according to Decision No. 2146/QD-BTC dated November 12, 2021, of the Minister of Finance, recently, The General Department of Taxation requested the Tax Departments of the provinces and centrally-run cities to urgently and seriously implement synchronously solutions to increase the efficiency of tax administration and prevent tax loss for e-commerce activities. 

Specifically, the General Department of Taxation requires that Departments of Taxation review, classify, monitor, and regularly update information about businesses conducting business activities and generating revenue from business forms that fall under the General Department of Taxation's management in the field of e-commerce. 

Accordingly, specific target groups are regularly monitored including Enterprises collected from foreign organizations such as Google, Facebook, Apple, Amazone...; business enterprises, online sales; businesses that operate online house rental through applications such as Booking.com, Agoda...; enterprises paying for electronic services of foreign contractors; enterprises organize and operate e-commerce trading floors such as Sendo, Lazada, Shopee ..., operate payment intermediary applications (apps) such as Vnpay, Airplay, Napas ..., transit intermediary apps such as Grab, Now, Baemin…

Additionally, tax departments must bolster propaganda for firms engaged in e-commerce business activities that generate revenue from units that possess online platforms. through the staging of conferences and training sessions on tax policy; and the distribution of open letters from tax authorities to organizations and people. 

Thereby, creating conditions for units to fully grasp the contents of the obligation to declare and pay tax on income from e-commerce activities. 

Simultaneously, Tax Departments must actively establish programs, report to provincial and centrally managed city People's Committees, and suggest plans and solutions to coordinate with other departments, agencies, and enterprises involved in the field of taxation. in the field of telecommunications, information communication, transmission, and supply of network infrastructure to collect information on firms that do e-commerce activity completely and rapidly. 

Synthesize, review, and compare information and data about enterprises engaged in e-commerce, content creation on online platforms, and revenue generation from overseas organizations, as well as tax administration data. 

From there, identify circumstances where a, where a duty to disclose and pay tax exists but the taxpayer, yet registered, declared, and paid tax by applicable legislation. 

The basis of Based onto enhance and supplementing inspection cases of Vietnamese enterprises engaged in the e-commerce business, transactions, collaboration, and the use of advertising services. Foreign corporations are now providing forms of cross-border advertising through online platforms provided by foreign entities. 

Tax departments have increased their inspection, examination, and review of foreign contractor tax declarations and payment status, as well as their collection of information about companies.

Hai Nam