Vietnamese e-com firms may choose not to pay taxes on sellers' behalf

15 Dec '21

1 min read

Pic: Gajus | Dreamstime.com

Vietnamese e-commerce companies may choose not to declare and pay tax on behalf of sellers, according to a new circular issued by the ministry of finance replacing an old one. This will offer financial relief to such platforms. But the circular offers strict regulations to avoid loss of tax revenue, according to the country’s general department of taxation.

The new circular gives e-commerce platform owners two choices. One is to pay taxes on behalf of individuals if authorised by sellers. The second is for platforms to provide the information of business individuals, such as the name, age, address, tax number, telephone number, sales revenue and bank account number, to the tax authority, according to a Vietnamese media report.

If providing seller information, the platform will have to provide information on each transaction, but the number of e-commerce transactions is currently up to 3.5 million transactions per day.

Recently, the ministry of finance and the ministry of industry and trade signed an agreement on sharing data on e-commerce platforms and information about individuals selling on them.

The new circular will take effect from January 1 next year.

Fibre2Fashion News Desk (DS)

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