Ho Chi Minh City's Tax Department plans to continue to collect taxes from online businesses that use Facebook and other social media sites (Illustrative photo: columbiamovers.com) HCM City (VNA) - Ho ChiMinh City's Tax Department plans to continue to collect taxes from onlinebusinesses that use Facebook and other social media sites.
The collection is to ensure a fair businessenvironment in which all businesses must fulfil tax obligations, according tothe department.
The agency last year contacted more than14,500 online retailers, including Facebook accounts, demanding payment of taxfor businesses operating on the social network.
Of the figure, some 3,990 cases worked withthe agency and declared tax.
Facebook, Vietnam’s most popular socialnetwork with over 52 million active accounts, is also used as an e-commerceplatform, which tax authorities have had difficulty managing.
According to the department, e-commerceactivities on Facebook that have regular business must declare tax and pay taxin accordance with the law.
Experts said it is difficult to taxindividuals and organisations on the social network because most sales are madein cash.
Facebook is used for many purposes,including consultation, marketing and retailing of products and services. IfFacebook sellers consider their work as seasonal, it is not taxed under currentlaw.
Last year, the HCM City Tax Departmentannounced a tax collection plan for the e-commerce business.
Individuals and organisations selling goodsover the internet with annual revenue of more than 100 million VND (4,400 USD)must register and declare tax.
Tax obligations consist of licensing tax,value-added tax, personal income tax, excise tax, and environmental protectiontax.
Many holders of Facebook accounts do notwant to declare or pay taxes since online trading is seen as a seasonal orpart-time job. Even large account holders are finding ways to evade taxes.
According to tax officials, account holdershave tried many ways to evade taxes. The most common way is to increase cashtransactions, set up multiple sales pages, change locations and refuse toaccurately declare sales or disclose sales prices.
HCM City’s Tax Department recently handed abill of 9.1 billion VND (401,300 USD) to a Facebook retailer in a raresuccessful attempt to levy sales on social media.
Le Thi Thu Huong, deputy director of thedepartment, said the amount was the biggest ever to be claimed by thedepartment from an online retailer for tax evasion.
Vietnam imposes a 0.5 percent income taxand a 1 percent value added tax on sales of more than 100 million VND per year,according to the department.-VNA
The collection is to ensure a fair businessenvironment in which all businesses must fulfil tax obligations, according tothe department.
The agency last year contacted more than14,500 online retailers, including Facebook accounts, demanding payment of taxfor businesses operating on the social network.
Of the figure, some 3,990 cases worked withthe agency and declared tax.
Facebook, Vietnam’s most popular socialnetwork with over 52 million active accounts, is also used as an e-commerceplatform, which tax authorities have had difficulty managing.
According to the department, e-commerceactivities on Facebook that have regular business must declare tax and pay taxin accordance with the law.
Experts said it is difficult to taxindividuals and organisations on the social network because most sales are madein cash.
Facebook is used for many purposes,including consultation, marketing and retailing of products and services. IfFacebook sellers consider their work as seasonal, it is not taxed under currentlaw.
Last year, the HCM City Tax Departmentannounced a tax collection plan for the e-commerce business.
Individuals and organisations selling goodsover the internet with annual revenue of more than 100 million VND (4,400 USD)must register and declare tax.
Tax obligations consist of licensing tax,value-added tax, personal income tax, excise tax, and environmental protectiontax.
Many holders of Facebook accounts do notwant to declare or pay taxes since online trading is seen as a seasonal orpart-time job. Even large account holders are finding ways to evade taxes.
According to tax officials, account holdershave tried many ways to evade taxes. The most common way is to increase cashtransactions, set up multiple sales pages, change locations and refuse toaccurately declare sales or disclose sales prices.
HCM City’s Tax Department recently handed abill of 9.1 billion VND (401,300 USD) to a Facebook retailer in a raresuccessful attempt to levy sales on social media.
Le Thi Thu Huong, deputy director of thedepartment, said the amount was the biggest ever to be claimed by thedepartment from an online retailer for tax evasion.
Vietnam imposes a 0.5 percent income taxand a 1 percent value added tax on sales of more than 100 million VND per year,according to the department.-VNA
VNA
