E-commerce platforms deduct and pay taxes on behalf of sellers from July 1

The Government has issued Decree No. 117 regulating tax management for business activities on e-commerce platforms and digital platforms of households and individuals.

According to the decree, from July 1, e-commerce platforms and digital platforms must deduct and pay value-added tax (VAT) and personal income tax for sellers (households and individuals doing business) on the platform. Sellers include individuals residing in the country and abroad.

E-commerce platforms will deduct and pay taxes on behalf of online sellers from July 1.

The above taxes will be deducted immediately when the order is successfully confirmed and the buyer accepts payment. The tax amount is determined as a percentage of the revenue of each completed transaction. For example, VAT on goods is 1%, services are 5%, transportation and services associated with goods are 3%.

For personal income tax for individuals residing in the country, the tax rate is 0.5% for goods, 2% for services, 1.5% for transportation and services associated with goods. Individuals not residing in the country are subject to personal income tax when selling goods on online platforms at 1%, 5% for services, 2% for transportation and services associated with goods.

In case the organizations managing the e-commerce platform subject to deduction and payment cannot determine whether the transaction generating revenue from the e-commerce platform is goods or services or type of service, the determination of the amount of tax to be deducted shall be carried out according to the highest percentage rate.

For canceled or returned transactions, the organization managing the e-commerce platform shall offset the deducted or paid tax of the canceled or returned transaction with the deducted or paid tax of the transactions selling goods and providing services.

The amount of tax paid on behalf of the organization managing the e-commerce platform is determined by the total tax of the transactions selling goods and providing services after offsetting the total tax of the canceled or returned transactions of households and individuals.

The Decree also clearly states that households and individuals conducting business activities on e-commerce platforms are responsible for providing complete and accurate information on tax codes or personal identification numbers (for Vietnamese citizens); passport numbers or identification information issued by competent foreign authorities (for foreign citizens) and mandatory information for sellers as prescribed by the law on e-commerce to the organization managing the e-commerce platform.

Households and individuals whose value-added tax and personal income tax have been deducted, declared and paid on their behalf by the organization managing the e-commerce platform as prescribed are not required to declare and pay value-added tax and personal income tax for business activities on the e-commerce platform for which tax has been deducted and paid on their behalf.

According to nld.com.vn

Source: https://baolaocai.vn/san-thuong-mai-dien-tu-khau-tru-nop-thue-thay-nguoi-ban-hang-tu-17-post403168.html