Small and home-based business owners who use the Facebook platform to sell products and have revenue of more than 100 million VND (4,500 USD) per year will be taxed at five per cent. (Photo: cafef.vn) HCM City (VNA) – Small and home-based business owners whouse the Facebook platform to sell products and have revenue of more than 100million VND (4,500 USD) per year will be taxed at five percent.
The money will be paid through a tax registration, value added tax, personalincome tax and other taxes depending on the goods they sell.
“With revenue of over 100 million USD each year, a business on Facebook payingnearly 2 million VND (90 USD) for tax is acceptable,” Nguyen Thai Son, ataxation consultant, said in the Thanh Nien (Young People) newspaper.
The tax level for those who have the same revenue in a traditional business isaround four times higher, nearly 8 million VND (360 USD), he said.
In early June, the HCM City and Hanoi Taxation Departments sent 13,400notifications to Facebook businesses and over 1,000 businesses contacted withtax officials in HCM City.
“To reduce tax losses from online business, tax authorities have worked withFacebook, Google and Apple Store to have e-commerce accounts, worked with banksregarding revenue and worked with police to have a list of those who haven’tpaid tax,” Le Thi Thu Huong, deputy head of the HCM City Taxation Departmentsaid.
“The taxation department will collect information from different sources andpublish names of organisations and individuals who evade taxes, as well asrequest relevant authorities to close any e-commerce websites if they do notpay tax,” she added.
Hương also said that individuals who have online business in social media willbe provided a taxation registration and code.
In developed countries, all people and organisations are required to declareincome and pay taxes.
“Collecting taxes on sales through social networks is necessary,” Huong added.
Bui Quang Tin, a lecturer in business administration at HCM City Universityof Banking, said that transactions on the Internet are difficult to control andcollecting taxes should be done step by step.
Initially, there should be requirements that all individuals conductingbusiness via Facebook must register their operations and declare their income.
He also noted that with millions of Facebook accounts, in the first phase, thetax authority should target large and professional businesses, because manyindividual dealers operate as side jobs, or even seasonal businesses. If it triedto control all of them, it would use significant resources and probably beinefficient. The difficulty in managing online sellers and collectingtaxes is said to be the consequence of the low rate of non-cash transactions inVietnam.
According to an official estimation, e-commerce activity has been booming, with80,000 active websites in the city, half of which run stable operations, buttax collection in the field was very poor, especially sales activities throughFacebook.
In fact, in 2015, revenue from e-commerce in Vietnam reached 4.1 billion USD,an increase of five times compared with 2012. It is expected to reach 10billion USD by 2020, accounting for 5 percent of total retail sales in thecountry. Therefore, e-commerce will play a significant role in the Vietnameseretail sector in the future.-VNA
The money will be paid through a tax registration, value added tax, personalincome tax and other taxes depending on the goods they sell.
“With revenue of over 100 million USD each year, a business on Facebook payingnearly 2 million VND (90 USD) for tax is acceptable,” Nguyen Thai Son, ataxation consultant, said in the Thanh Nien (Young People) newspaper.
The tax level for those who have the same revenue in a traditional business isaround four times higher, nearly 8 million VND (360 USD), he said.
In early June, the HCM City and Hanoi Taxation Departments sent 13,400notifications to Facebook businesses and over 1,000 businesses contacted withtax officials in HCM City.
“To reduce tax losses from online business, tax authorities have worked withFacebook, Google and Apple Store to have e-commerce accounts, worked with banksregarding revenue and worked with police to have a list of those who haven’tpaid tax,” Le Thi Thu Huong, deputy head of the HCM City Taxation Departmentsaid.
“The taxation department will collect information from different sources andpublish names of organisations and individuals who evade taxes, as well asrequest relevant authorities to close any e-commerce websites if they do notpay tax,” she added.
Hương also said that individuals who have online business in social media willbe provided a taxation registration and code.
In developed countries, all people and organisations are required to declareincome and pay taxes.
“Collecting taxes on sales through social networks is necessary,” Huong added.
Bui Quang Tin, a lecturer in business administration at HCM City Universityof Banking, said that transactions on the Internet are difficult to control andcollecting taxes should be done step by step.
Initially, there should be requirements that all individuals conductingbusiness via Facebook must register their operations and declare their income.
He also noted that with millions of Facebook accounts, in the first phase, thetax authority should target large and professional businesses, because manyindividual dealers operate as side jobs, or even seasonal businesses. If it triedto control all of them, it would use significant resources and probably beinefficient. The difficulty in managing online sellers and collectingtaxes is said to be the consequence of the low rate of non-cash transactions inVietnam.
According to an official estimation, e-commerce activity has been booming, with80,000 active websites in the city, half of which run stable operations, buttax collection in the field was very poor, especially sales activities throughFacebook.
In fact, in 2015, revenue from e-commerce in Vietnam reached 4.1 billion USD,an increase of five times compared with 2012. It is expected to reach 10billion USD by 2020, accounting for 5 percent of total retail sales in thecountry. Therefore, e-commerce will play a significant role in the Vietnameseretail sector in the future.-VNA
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