HÀ NỘI — Growing concerns have emerged over a draft decree on tax management for business activities conducted via e-commerce and digital platforms.The regulation, which will apply to individual sellers and household businesses, is set to take effect on April 1.According to the Việt Nam Chamber of Commerce and Industry (VCCI), businesses have raised concerns about the draft decree's timeline.VCCI said businesses need additional time to develop IT systems, allocate human resources and educate sellers on compliance requirements. As the decree remains in its draft stage, the chamber has proposed postponing its enforcement to July 1, to allow for adequate preparation.While acknowledging the necessity of tax collection, VCCI emphasised the importance of a well-structured tax framework that minimises administrative burdens and compliance costs for both businesses and individual sellers.Additionally, the chamber stressed the need for clear definitions of responsibilities among stakeholders to ensure a smooth and efficient implementation of the new tax system.Meanwhile, under the draft decree, individuals conducting regular business on e-commerce and digital platforms will be required to declare taxes monthly, while household businesses must report their revenue, tax payable and business expenses.This effectively removes the option of lump-sum tax payments for individual sellers, according to VCCI.The Vice Secretary-General cum Director of the Legal Department of VCCI Đậu Anh Tuấn, said that this approach would be impractical for small-scale sellers, as many lack the capital to invest in business management software and may struggle with complex tax declarations.To address this, he proposed allowing lump-sum tax payments for individuals with a limited number of transactions, making compliance more feasible.Additionally, the draft decree mandates that online sellers declare business expenses, a requirement Tuấn deemed unnecessary, since taxes are already calculated based on revenue.He further argued that requiring detailed reporting on costs such as inventory, labour, utilities, shipping and marketing would be unrealistic.Simplifying residency classificationĐào Kim Loan, a distributor of Riman Incellderm pharmaceutical and cosmetic products, has voiced concerns over the proposed tax decree’s differentiation between residents and non-residents in Việt Nam for e-commerce taxation.Under the draft decree, tax rates for business activities on e-commerce platforms will vary depending on whether an individual is classified as a resident or non-resident. However, Loan pointed out that accurately determining residency status in the digital environment poses significant challenges.Currently, Circular 111/2013/TT-BTC outlines residency criteria, including being present in Việt Nam for at least 183 days per year or having a permanent residence.While these criteria are easier to verify using traditional tax collection methods, applying them to online sellers requires additional data, such as immigration records, temporary and permanent residence registrations and declared places of residence.As per the draft regulation, taxable revenue is defined as the total amount paid by the buyer, which e-commerce platforms collect during transactions. This means that a seller’s revenue would be calculated based on the full payment made by the buyer. — VNS (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News