Tax law stipulates that individuals doing business in traditional or e-commerce forms are subject to value added tax and personal income tax if they generate revenue of 100 million VND or more per year. However, many online sellers who have to fulfill their tax obligations do not understand how to declare taxes, which can lead to errors.

Therefore, propaganda to help individual business households understand tax regulations, support in grasping and implementing regulations through regulations is especially important.

Ms. Nguyen Thi Lan Anh, Director of the Department of Tax Management for Small and Medium Enterprises, Business Households and Individuals, General Department of Taxation, said that in recent times, the tax sector has always focused on promoting propaganda and supporting taxpayers, and on the General Department of Taxation's website (http://gdt.gov.vn), there is also a separate section to support business individuals in registering for tax, declaring and paying taxes electronically.

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To improve the effectiveness of management of e-commerce activities, including sales on social networking platforms, and ensure transparency and equality in financial obligations of all individuals and business organizations, whether in traditional or electronic forms, tax authorities have been implementing many specific and synchronous solutions.

First, continue to provide electronic tax services to support tax declaration and payment at level 4.0, especially in the coming time, the General Department of Taxation will put into operation the Electronic Information Portal for individuals and business households with e-commerce activities to conveniently fulfill tax obligations.

Along with that, promote propaganda and support to guide taxpayers participating in e-commerce business activities to declare and pay taxes in accordance with the law.

The tax authority proposed to amend and supplement legal regulations, requiring e-commerce trading floors with online ordering functions to be responsible for deducting, declaring and paying taxes on behalf of individuals doing business on the floors.

In addition, continue to enrich the large database on e-commerce, collect information from many sources, on that basis, exploit and process information to review taxpayers to put them under management, request declarations in accordance with reality, adjust revenue or handle additional collection.

Another solution is to build a risk management model for organizations and individuals doing e-commerce business, thereby applying artificial intelligence (AI) to process big data and give warnings in cases of tax risks.

Another measure is to continue to carry out inspections and examinations of organizations and individuals doing e-commerce business; enterprises that own e-commerce business floors; shipping units; and payment intermediaries.

In addition, coordinate with ministries and branches to share and connect data to serve tax management for e-commerce activities according to the assigned tasks in Directive 18.

According to Ms. Lan Anh, if the taxpayer's violation is at the level of false declaration, the false declaration will be handled and a fine will be imposed for late payment. If the taxpayer intentionally commits tax fraud and evades tax, the tax penalty will be imposed from 1 to 3 times. In case the taxpayer evades tax to the extent of violating criminal law, the case will be transferred to the police agency for handling according to the provisions of law.

Therefore, the tax authority emphasizes the importance of learning to properly comply with tax obligations when doing e-commerce business, especially for individuals.

Quoc Tuan