|Shopee, Tiki, and Lazada to pay tax for its online sellers|
E-commerce operators will have to deduct payable tax before transferring sales back to households and individuals selling on e-commerce platforms. The new regulation aims to fight tax loss and evasion for e-commerce activities. Circular 40 will officially take effect on August 1, 2021.
During the transition stage, e-commerce platforms need to supply information of online sellers to tax bodies such as address, email, phone number, goods and services, business revenue, and bank accounts.
E-commerce platforms record around an average of 35 million transactions per day. Despite the booming activities, the legal framework for e-commerce remains incomplete. Over the past few years, tax authorities have made efforts to build mechanisms to identify individuals and organisations that are intentionally dodging their tax obligations, tracing their operations and collecting the arrears.
The new regulation is result of the efforts to tighten tax management of business households and individuals who earn large revenues on e-commerce platforms but are dodging their tax obligation.
The General Department of Taxation will coordinate with e-commerce state management agencies under the Ministry of Industry and Trade and the Ministry of Information and Communications to support e-commerce platforms in declaring and paying taxes for their online sellers.
By Thanh Van