Will encompass the tax management of e-commerce

12:39 | 11/02/2017 Finance Follow english.haiquanonline.com.vn on

VCN - At a regular press conference of Government in January, on February 3, 2017, the Deputy Minister of Finance, Mrs. Vu Thi Mai had the answers regarding tax payment of the online booking service.

se bao quat het viec quan ly thue trong thuong mai dien tu

The operation of online booking service in Vietnam will have to be paid tax in accordance with regulations. Source: Internet

Accordingly, on 18^th January, the Ministry of Finance issued document No. 848/BTC-TCT about guiding on tax policy and tax administration related to the business operations of online booking service.

Thus, public opinion raised issues of tax administration for companies which have online booking sites but their headquarters are located overseas. Therefore, Deputy Minister of Finance, Mrs. Vu Thi Mai said that, document No. 848/BTC-TCT is aimed to direct and request tax authorities to review for checking, controlling and strict management for online booking businesses.

Before releasing this document, Value added tax (VAT) law and corporate income tax (CIT) law has clearly identified subjects to be taxed. For contractors who derive income from Vietnam will have to pay foreign contractor tax that is VAT and corporate income tax, especially for companies that have online booking sites.

Moreover, according to Deputy Minister Vu Thi Mai, the document provides guidance, for the facility, if they don’t pay taxes according to the deduction method, which means that the output minus input, pay VAT and income tax payment on total revenue except expenses, they shall pay tax by a percentage of sales, in that 5% VAT, corporate income tax is 5%.

Regarding the question of sanctions, if these companies do not pay taxes, the Deputy Minister of Finance stated, the provisions in the Tax Administration Act stipulate that for companies established in Vietnam, signed contract work with foreign organizations and individuals overseas, the company must have deductions and paid for individuals and organizations overseas. Otherwise, the company itself in Vietnam must be responsible, and shall be punished as stipulated in the Law on Tax Administration.

"Thus, the sanction for the organization doing business of online booking reservation has been set very clearly. However, the Ministry of Finance found that e-commerce is the new business sector so that they must conduct further research to cover all new transactions in order to manage tax in that business better", Deputy Minister Vu Thi Mai said.

The use of revenue from environmental taxes is done openly and transparently

Regarding the proposal to increase environmental protection tax (EPT) in every liter of petrol increased from 3,000-8,000 VND/liter in the draft Law on Environmental Protection (revised) of the Ministry of Finance, there are many opinions claimed that, if the proposal was approved, it would cause a strong impact on the market, which could push the fuel price to hit a strong record, and cause difficulty for businesses and citizens. Moreover, there is expert opinion asserting that the tax rate is higher than the current tariff and the increased tax may not help to keep the environment cleaner, and questions about the issues of transparency in revenue resource and expenditures by using money collected from environmental taxes.

Minister - Chairman of the Government Office - Government spokesman, Mr. Mai Tien Dung said that the current EPT stipulated the tax bracket for petrol is between 1,000-4,000 VND and the Standing Committee of the National Assembly is the competent authority to decide on specific tariffs for each period in line with economic conditions - social and environmental protection policy of the State (now the National Assembly Standing Committee decision on environmental protection duties for petrol is 3,000 VND/liter).

The Ministry of Finance proposed to adjust the tax bracket rate of EPT for petrol from 3000-8000 VND/liter is under drafting process and consulted widely by ministries, branches, localities, organizations and associations corporate, business and citizens, not present to the Government for consideration and discuss this issue.

Under the provisions of the Law on Promulgation of Legal Normative Documents, when the draft Law on Environmental Protection (revised) is prepared, the Ministry of Finance must complete and explain to collect the opinions of organizations, businesses and citizens; comprehensive assessment of the positive impact, the negative of economic policy - society in the short and long term ... to report to the Government for consideration and discussion before being presented to the National Assembly for decision.

The use of revenues from EPT in general and EPT for petrol in particular is done openly and transparently in accordance with the provisions of the State Budget Law and the Law on Environmental Protection.

By Hương Dịu/Thanh Thuy

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