Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - The Vietnam e-Commerce Association (Vecom) said thata number of regulations in Circular 40 were not yet feasible, which couldimpact activities of hundreds of thousands of individuals doing business one-commerce floors.
The association has just released a statement on new regulations related toe-commerce in Circular 40/2021/TT-BTC, which guides value added tax, personalincome tax and tax administration for business households and individuals.
The circular was issued on June 1 and will take effect from August 1 to replaceCircular 92/2015/TT-BTC.
The circular stipulated that commerce trading floors are responsible fordeclaring and paying tax on behalf of individuals doing business selling goodsand services.
The amount of tax declared or paid is based on the tax rate of each field ofbusiness.
Circular 40 had many new contents compared to the draft first published March12, but the drafting board had not yet collected comments from stakeholders andthose directly impacted, Nguyen Ngoc Dung, Vecom vice chairman told a meetinglast week.
Representatives of some units said that the e-commerce trading floor was not an"income payer" unit. They only provide technology infrastructures toconnect sellers and buyers and help them make transactions.
Therefore, they are not subjects to declare and deduct income tax of sellersaccording to regulations.
In addition, business individuals would have to declare and pay tax at the taxoffice where their business located, while e-commerce platforms might havetheir business locations in other provinces, said e-commerce representatives.
Therefore, the declaration and submission on behalf of the company leads toconflicts with current regulations.
Vecom also said the expected roadmap to apply the requirements to thee-commerce floors on August 1 was too short to be able to prepare the systemfor data collection and report to meet the requirements of the tax authority.
Representatives of e-commerce floors expressed their hope that the taxauthority would clarify specific requirements and application roadmap, and atthe same time discuss with e-commerce floors to understand the difficultiesencountered in reality.
On June 7, Vecom sent a document to the General Department of Taxationexpressing concern about the feasibility and potential impacts of theregulation.
A Tiki representative told Viet Nam News they expected the tax authority togive detailed instructions to businesses on the plan to implement the circular,including steps to be taken, implementation time of each stage, and specificdispatches on calculation methods, tax and accounting declaration forms.
Secondly, the e-commerce platform realised that it would take more time to workinternally, prepare systems, infrastructures, and equipment for data collectionand reports following the request of the tax authority, as well as ensuring thesecurity of the system.
In terms of operation, e-commerce floors also needed more time to work, guideand reach agreement with their brand partners and sellers to ensure close coordination,accurate implementation for circular issued by the Ministry of Finance./.
The association has just released a statement on new regulations related toe-commerce in Circular 40/2021/TT-BTC, which guides value added tax, personalincome tax and tax administration for business households and individuals.
The circular was issued on June 1 and will take effect from August 1 to replaceCircular 92/2015/TT-BTC.
The circular stipulated that commerce trading floors are responsible fordeclaring and paying tax on behalf of individuals doing business selling goodsand services.
The amount of tax declared or paid is based on the tax rate of each field ofbusiness.
Circular 40 had many new contents compared to the draft first published March12, but the drafting board had not yet collected comments from stakeholders andthose directly impacted, Nguyen Ngoc Dung, Vecom vice chairman told a meetinglast week.
Representatives of some units said that the e-commerce trading floor was not an"income payer" unit. They only provide technology infrastructures toconnect sellers and buyers and help them make transactions.
Therefore, they are not subjects to declare and deduct income tax of sellersaccording to regulations.
In addition, business individuals would have to declare and pay tax at the taxoffice where their business located, while e-commerce platforms might havetheir business locations in other provinces, said e-commerce representatives.
Therefore, the declaration and submission on behalf of the company leads toconflicts with current regulations.
Vecom also said the expected roadmap to apply the requirements to thee-commerce floors on August 1 was too short to be able to prepare the systemfor data collection and report to meet the requirements of the tax authority.
Representatives of e-commerce floors expressed their hope that the taxauthority would clarify specific requirements and application roadmap, and atthe same time discuss with e-commerce floors to understand the difficultiesencountered in reality.
On June 7, Vecom sent a document to the General Department of Taxationexpressing concern about the feasibility and potential impacts of theregulation.
A Tiki representative told Viet Nam News they expected the tax authority togive detailed instructions to businesses on the plan to implement the circular,including steps to be taken, implementation time of each stage, and specificdispatches on calculation methods, tax and accounting declaration forms.
Secondly, the e-commerce platform realised that it would take more time to workinternally, prepare systems, infrastructures, and equipment for data collectionand reports following the request of the tax authority, as well as ensuring thesecurity of the system.
In terms of operation, e-commerce floors also needed more time to work, guideand reach agreement with their brand partners and sellers to ensure close coordination,accurate implementation for circular issued by the Ministry of Finance./.
VNA
