Identifying online sellers: Preventing tax evasion, fighting counterfeit goods

Individual seller account authentication will be added soon. On websites, some online business platforms have started to require seller account identification.

The Ministry of Industry and Trade said it will soon supplement and amend management policies. e-commerce, including additional regulations Account Verification online business people. There have been e-commerce platform first request Seller identification. When sellers are identified, will the situation of counterfeit goods, fake goods, and tax evasion be resolved? What roadmap and solutions are needed to implement online business account authentication?

Vietnam's e-commerce growth rate is ranked among the top 10 countries in the world with the fastest e-commerce growth rate, with a growth rate of 25% in 2023. However, this rapid development has led to a situation where counterfeit goods, poor quality goods, violations Intellectual property rights and tax evasion are becoming increasingly sophisticated and complex. The Ministry of Industry and Trade said it will soon add regulations on authenticating individual seller accounts and providing information on websites. Some online business platforms have begun to require seller account identification. This move has been highly appreciated by consumers.

5 years ago, when she was a student, Ms. Thao sold products online on Shopee with a simple registration process that only required an email address and a nickname. After a hiatus due to COVID-19, she returned. online business, but now have to verify personal account with citizen identification card

"I find verifying my Shopee account using my citizen ID card quite suitable. It's also easier for the government to control. As a citizen, I'm willing to pay taxes if I do business on Shopee," said Ms. Tran Phuong Thao, Hung Yen province.

"With this decision, I feel more secure when buying products and trust the shop owner more. If there is any problem with my product, I can come to get a warranty or return it," said Ms. Le Ngoc Minh, Hanoi.

In recent years, the Ministry of Industry and Trade has applied big data analysis technology and artificial intelligence to detect violations.

Mr. Ngo Tuan Anh - Vice President of Vietnam Information Security Association said: "We also have 2 tools, we can use citizen identification cards with electronic chips, or use the second-level VNeID application, these 2 forms both help authenticate the correct subject".

Recently, some major online shopping platforms such as TikTok, Shopee... have flourished. livestream sales with sales of several hundred million, billions of dong per session. According to the Vietnam E-commerce Association, there are an average of 2.5 million livestream sales sessions per month, with more than 50,000 sellers participating. However, violations related to smuggled goods, counterfeit goods, and tax evasion are becoming increasingly complicated.

Many violations in online business

Định danh người bán hàng online: Chặn trốn thuế, chống hàng giả - Ảnh 1. — Account authentication regulations for online merchants will soon be added to protect consumers.

Specifically, by May 8, 2024, the Department of E-commerce and Digital economy, the Ministry of Industry and Trade has transferred information on more than 500 websites and applications with signs of violations to the police. The number of violations in e-commerce handled increased 2.4 times, the amount of fines increased nearly 3 times compared to the same period in 2023.

In the tax sector, in the three years 2021 - 2023, the General Department of Taxation handled more than 22,000 cases of online sales violating tax payment, collecting nearly 3,000 billion VND in taxes. In the first 6 months of this year, the tax authority also handled nearly 4,600 cases of violations, collecting and fining nearly 300 billion VND.

Countries tighten management

In the context of e-commerce growing strongly, many countries have implemented stricter management measures for online sales activities. Policies are aimed at increasing transparency to protect consumers, building a healthier and more sustainable market. Examples from some Asian countries.

As per the new regulations, Thai authorities have clarified that selling or advertising products on digital platforms must meet legal standards, such as those set by the Food and Drug Administration of Thailand. In addition, sellers must provide clear details about the product, such as standard certificates, information about the importer, and other relevant information. Suppliers must also authenticate their identity when applying to sell on digital platforms.

Meanwhile, China’s State Administration for Market Regulation continues to announce a series of new regulations to manage the online sales industry. Sellers on the internet, TV or phone must clearly state product information on their home page, screen, call or catalog. Platforms must also publicly disclose the seller’s name, address and contact information. Platforms also do not allow online sellers to make comparisons, such as “cheapest” or “best”. Violators will be punished by being banned from selling online for a certain period of time or even banned permanently.

E-commerce is having an increasingly large impact, especially on young people, the elderly, and people living in rural, mountainous, and remote areas. There are about 61 million Vietnamese people participating in e-commerce shopping, the highest rate in Southeast Asia. Therefore, strengthening the management, monitoring, and supervision of goods on the online environment has become an urgent task. While the number of transactions is very large while the human resources for monitoring and processing are still thin, applying technology is an inevitable direction, in which account authentication will be an effective solution, helping to increase the responsibility of both sellers and service providers, building a healthy e-commerce environment.

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