The Government issued Decree No. 117 regulating tax management for business activities on e-commerce platforms and digital platforms of households and individuals, effective from July 1. Accordingly, e-commerce platforms and digital platforms must deduct and pay tax on behalf of 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.
The above taxes will be deducted immediately when the order is successfully confirmed and the buyer accepts the 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%.
E-commerce platforms will pay taxes on behalf of online sellers from July 1. (Photo: Trong Dat)
As 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 online platform management unit cannot determine whether the transaction is goods or services, the deductible tax amount will be at the highest rate. This tax declaration is done monthly.
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 stipulates that households and residents conducting business activities on e-commerce platforms are responsible for declaring and paying special consumption tax, environmental protection tax, resource tax and other revenues payable to the state budget collected by tax authorities in accordance with the provisions of the law on tax, the law on tax management and other relevant laws.
Individuals doing business on online sales platforms are also responsible for providing complete and accurate tax code information or personal identification number and passport to the platforms.
Source: https://vietnamnet.vn/san-thuong-mai-dien-tu-nop-thue-thay-nguoi-ban-hang-online-tu-1-7-2410577.html
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