National Assembly Delegate: My two children buy 7-10 packages every day, cross-border transactions are huge

Minister Ho Duc Phoc said that some countries have removed the regulation of not imposing VAT on small value goods. But he did not express his opinion on whether this regulation should be removed.

Minister of Finance Ho Duc Phoc - Photo: NGOC AN

On the afternoon of June 17, Minister of Finance Ho Duc Phoc discussed with some opinions of delegates at the group discussion session on the draft Law on Value Added Tax (amended). Speaking at the discussion, the delegate mentioned the proposal of the National Assembly 's Finance and Budget Committee on imposing value added tax (VAT) on small-value goods imported through platforms such as Shopee, Lazada, Tiki, TikTok, etc. Discussing this issue, Mr. Phoc said that the exemption of VAT on small-value imported goods is implemented under the International Convention on Harmonization and Simplification of Customs Procedures (1973) to which Vietnam is a signatory. The Convention stipulates that small-value imported goods are not subject to customs duty and other taxes. Currently, the law does not stipulate this, but Decree 134 of 2016 and Decision 78 of 2010 of the Prime Minister stipulate this type of tax. However, according to Mr. Phoc: "Currently, some countries have abolished this regulation. For example, the European Union (EU) abolished VAT exemption for shipments under 22 euros, the UK abolished the regulation of VAT exemption for imports with a value of 135 pounds or less from January 1, 2021. Meanwhile, Thailand collects 7% VAT on all imported goods, regardless of value."

Delegate Nguyen Manh Hung ( Can Tho ) - Photo: NGOC AN

Also talking about this, delegate Nguyen Manh Hung (Can Tho delegate) said that currently, small transactions under 1 million VND, which are exempt from import tax and VAT, are traded through extremely large numbers of electronic trading floors.

"I have two children in high school age who buy about 7 to 10 small packages every day. That's enough for a family, but how big is the transaction system in the whole country?" Mr. Hung said to further explain his opinion. According to the delegate: "We need to consider how to regulate so that we can have certain sources of revenue from this part. Although the value of each order is small, the number of transactions is extremely large, especially goods across the border that we import from China or some neighboring countries such as Thailand." Discussing further about the imposition of VAT on fertilizers, the Minister of Finance said that many opinions suggest that this should be considered. Currently, there are two options. If there are no regulations, domestic manufacturing enterprises will have difficulty because they will not be refunded input tax. But if this item is taxed, it will more or less increase prices. Mr. Phuc hopes that delegates will study and agree on a decision to ensure the country's interests and sustainable agricultural development.

Minister Ho Duc Phoc: Businesses cannot make tax officials responsible for wrongdoings and vice versa.

It mentions regulations on prohibited acts with tax authorities in implementing VAT and the responsible acts of tax authorities, tax officers and enterprises. According to Mr. Phoc, this draft law supplements the responsibilities of taxpayers, tax authorities, tax officers and clearly stipulates the principle that whoever makes a mistake must bear the responsibility. It is impossible for businesses to make mistakes and make tax officials responsible and vice versa. Mr. Phoc said: "Based on tax refund records, businesses submit fake invoices, tax authorities cannot check the origin of each invoice, while the time for checking records, refunding taxes and post-inspection is limited. So in the end, tax officers must take full responsibility". From that, Mr. Phoc said: "It is necessary to clearly define the functions, scope of work, and limits of responsibility to make it stricter. Faced with the situation of invoice fraud for tax refunds, the police have prosecuted many cases, we want to make it clear so that those who commit fraud must take responsibility". Accordingly: "If the tax authority checks the documents incorrectly, the person checking must be responsible, and the person who created the fake documents must also be responsible. This avoids ambiguity, with one person blaming the other."

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Source: https://tuoitre.vn/dai-bieu-quoc-hoi-hai-con-toi-moi-ngay-mua-7-10-goi-hang-giao-dich-qua-bien-gioi-vo-cung-lon-20240617173531006.htm