Research - Exchange

OVERVIEW LEGAL PROVISIONS AND SOME DIFFICULITIES ON MANAGING TAX TOWARDS INDIVIDUALS AND...

24/01/2024

OVERVIEW LEGAL PROVISIONS AND SOME DIFFICULITIES ON MANAGING TAX TOWARDS INDIVIDUALS AND BUSINESS HOUSEHOLDS ON E-COMMERCE TRADING PLATFORM UNDER VIETNAMESE LAW

Pham Huynh Bao Oanh
LLM, Faculty of Law, Ho Chi Minh City University of Economics and Finance (UEF), HCMC, Vietnam
Doan Thanh Tho
LLB, Faculty of Law, Ho Chi Minh City University of Economics and Finance (UEF), HCMC, Vietnam

Abstract:
In recent years, e-commerce activities have developed rapidly and become popular in Vietnam. The article analyzes overview legal provisions and some difficulties of tax management towards individuals and business households on e-commerce trading platform. Thereby, the authors give some recommendations to amend Vietnamese tax laws.
Keyword: e-commerce, tax management, individuals and business households on e-commerce trading platform

File PDF: Overview Legal Provisions And Some Difficulities On Managing Tax Towards Individuals And Business Households On E-Commerce Trading Platform Under Vietnamese Law

Introduction

In recent years, the digitalization of Vietnam’s economy has been developed significantly, especially e-commerce is one of the fastest growing segments in Vietnam’s digital economy[1]. According to Vietnam Electronic Commerce and Information Technology Agency (VECITA)’s report, Vietnam’s e-commerce market grows 35% per year, 2.5 times faster than Japan. Additionally, the COVID-19 pandemic was a big push for the development of e-commerce, which has enhanced dynamism in the Vietnamese e-commerce trading platform with increasing numbers of digital sellers and buyers[2]. However, the number of business individuals and business households registering tax, declaring, and paying tax is still limited. According to data from the government of Hanoi City, it is shown that from 2017 to the end of 2020, Ha Noi City’s Tax Department reviewed and sent SMS notifications and instructions to 13,422 Facebook account holders with online sales activities and only over 2,000 business individuals have registered and been granted a tax code for tax declaration and tax payment (as of the end of 2020). The total amount of taxes and fines collected from business individuals is more than 22.7 billion Vietnamese Dong[3].
E-commerce is an inevitable trend in the digital economy in the world and Vietnam. Therefore, it has become a major challenge requiring Vietnamese tax law to keep up with the times to overcome the existing limitations, thereby ensuring a balance of rights and obligations of the relevant subjects. For example, tax registration, declaration, and payment of taxes by individuals and households on online platforms are still a barrier for lawmakers.

[1] Cameron A, Pham T H, Atherton J, Nguyen D H, Nguyen T P, Tran S T, Nguyen T N, Trinh H Y & Hajkowicz S (2019), Vietnam's Future Digital Economy – Towards 2030 and 2045, CSIRO, Brisbane.

[2] Acclime (2022), The e-commerce pivot in Vietnam, https://vietnam.acclime.com/downloads/industry-reports/Acclime%20e-commerce%20report.pdf

[3] Cao Nguyen & Minh Bang (2020), Banks provide account information: Selling goods online is completely tax evasion, https://laodong.vn/kinh-te/ngan-hang-cung-cap-thong-tin-tai-khoan-ban-hang-online-het-cua-tron-thue-856787.ldo, accessed from 15^th July 2023