Tax collection from online vendors rises by 54%
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Tax collection from online sellers rose 54% year-on-year in the first half to VND9.98 trillion (US$392 million) as the government cracks down on tax evasion by e-commerce sellers.
Some 43,000 vendors and businesses aid taxes, with over 4,500 also paying fines for violations, according to the General Department of Taxation.
Typically, a seller needs to pay 1.5% revenue tax.
Delays in registering a business and apprising the tax office about sales data could result in a fine of VND15 million.
The government estimates there are 3.1 million households and individuals doing business across the country, many of them online, who have not registered with tax authorities.
The department of taxation is cross-checking their data with that of the Ministries of Public Security and Industry and Trade, and e-commerce platforms such as Shopee, Lazada, Sendo, and Tiki to ensure no one escapes the tax net.
Hanoi has identified thousands of online vendors, including livestreamers, and collected VND10 trillion from them in the first six months.
Questions & Answers
Q.What is the typical tax rate online sellers are expected to pay?
What is the typical tax rate online sellers are expected to pay?
A typical online seller is expected to pay a revenue tax of 1.5%. This rate applies to vendors operating within the e-commerce sector. The government is increasing enforcement to ensure compliance.
Q.What penalties can online sellers face for not registering their business or reporting sales data?
What penalties can online sellers face for not registering their business or reporting sales data?
Sellers who delay registering their business or fail to inform the tax office about their sales data could face a fine of VND15 million. This penalty is part of the government's crackdown on tax evasion.
Q.How many online vendors are estimated to be operating without registering with tax authorities?
How many online vendors are estimated to be operating without registering with tax authorities?
The government estimates there are 3.1 million households and individuals conducting business across the country, many online, who have not yet registered with tax authorities. This highlights the scale of potential non-compliance.
Q.How is the tax department identifying unregistered online sellers?
How is the tax department identifying unregistered online sellers?
The tax department is cross-checking data with the Ministries of Public Security and Industry and Trade, as well as major e-commerce platforms like Shopee and Lazada. This method helps identify unregistered vendors and ensure tax compliance.
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