16:10 | 12/05/2019 Finance - Banking
Experts gathered at a forum in Hanoi on May 8, discussing measures to enhance tax management as e-commerce is enjoying strong growth amid the Fourth Industrial Revolution.
|Experts discuss measures to enhance tax management in e-commerce businesses - Photo: VNA|
The event was held by the General Department of Taxation and the World Bank in Vietnam.
According to Luu Duc Huy, Director of general department’s policy department, the tax sector has worked with authorities to manage tax collection in e-commerce businesses. However, Huy pointed out that tax agencies have encountered various difficulties in collection.
The issuance of business licenses for e-commerce firms remains bewildering as some e-commerce activities are not included in the tax list, so it is hard for tax authorities to determine appropriate collection forms.
Besides, tax collection is constrained by paper invoices which are used in 90 percent companies in Vietnam, while there is no law stipulating those using e-invoices have to share their invoice data with tax agencies. Therefore, tax authorities are unable to determine these firms’ revenue.
Huy said that tax collection from internet-based commercial activities via Google, Facebook and YouTube also creates difficulties for agencies.
To that end, Huy called for scrupulous preparation and detailed instructions to facilitate tax payment, and prevent negative impact of e-commerce.
A representative from the World Bank said the tax system should be developed to ensure budget collection and create favourable conditions for both e-commerce and traditional businesses.
To enhance tax management, the Vietnamese Government is amending its tax management law and adding many regulations on e-commerce businesses like e-tax declaration and e-invoices.