Do online businesses have to pay taxes?

"The time of online business"

Ms. Vu Thi Hai Oanh (32 years old), working at 49 Pham Ngoc Thach, District 3, Ho Chi Minh City, said that she has been doing online business for over 2 years. She specializes in selling household goods. And at the company she works for, almost everyone does online business as she said. However, she admitted that she has never paid taxes, even though online business has contributed to creating a significant source of income.

Some other young people today say that now is the "time of online business". "It is not an exaggeration to say that everyone and every household is doing online business. Because it is easy to see that celebrities, singers, models... also livestream to sell products. Or people doing business in different industries also have a "side job" of selling products on online platforms... The reason is to increase income", said Ho Minh Hieu (29 years old), who is doing online business on e-commerce platforms.

However, all admit that they do not know how taxes are specifically regulated by law when selling online. Many people affirm that online business does not need to pay taxes.

Dang Ngoc Ha (28 years old), working at a company on Nhieu Tu Street, Phu Nhuan District, Ho Chi Minh City, shared: "I also did online business for a while. But I really don't know about tax issues."

Ha wondered: "It is not clear whether online business has to pay tax or not? In which cases do we have to pay tax? How is tax calculated?"...

Online businesses must also pay taxes if they have sales revenue of 100 million VND/year or more.

Online business must pay taxes, when…

According to lawyer Nguyen Minh Hau, Khanh Hoa Provincial Bar Association, Article 4, Circular 40/2021/TT-BTC stipulates that business households and individuals with revenue of 100 million VND or less are not required to pay value added tax (VAT) and personal income tax (PIT).

In case an online business person has sales revenue of 100 million VND/year or more, he/she must pay VAT and personal income tax.

When doing business online, how is personal income tax calculated? Lawyer Hau said that according to Clause 3, Article 10, Circular 40/2021/TT-BTC, the amount of personal income tax payable is determined by the revenue subject to personal income tax, multiplied by the personal income tax rate (the amount of personal income tax payable = revenue subject to personal income tax x personal income tax rate).

Similarly, the amount of VAT payable is determined by multiplying the VAT taxable revenue by the VAT rate (the amount of VAT payable = VAT taxable revenue x VAT rate).

In which, the personal income tax rate is 0.5% and the VAT rate is 1%. Revenue subject to personal income tax and VAT is the revenue including tax of all sales, wages, commissions and service provision fees arising during the tax period from production and business activities of goods and services...

"Online business people must be responsible for declaring taxes fully, accurately and honestly. They must also submit tax declarations on time and be legally responsible for the completeness, accuracy and honesty of tax records as prescribed," added lawyer Hau.

Online business people must be responsible for declaring taxes fully, accurately and honestly.

In addition, according to lawyer Hau, in cases where online businesses ignore their tax obligations or pay taxes late, they will also be handled according to the provisions of the law. Specifically, if tax declarations are submitted late, depending on the severity, they will be fined from a warning to 25 million VND.

According to Clause 2, Article 59 of the 2019 Tax Administration Law, the late payment fee is calculated at 0.03% per day on the amount of late tax payment and the late payment fee calculation period will be calculated continuously from the day following the date of late tax payment to the day immediately preceding the date the taxpayer transfers the late payment to the state budget.

Regarding tax declaration, lawyer Hau informed that there are two common methods of declaring and paying personal income tax: the method of organizing tax declaration and payment on behalf of individuals (usually for cases of online business through e-commerce trading floors) and the lump sum method (for the remaining cases of online business, i.e. not selling through e-commerce trading floors)./.

Thanh Nam (thanhnien.vn)

Source: https://thanhnien.vn/kinh-doanh-online-co-phai-dong-thue-khong-185240606130359264.htm

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