Tax revenue from accommodation business services: Not correct or sufficient compared to reality

In the first quarter of 2023, the province's revenue from accommodation and catering services reached VND2,858 billion, up 12.5% over the same period last year, but the tax collected from accommodation service establishments only reached VND65 billion. This shows that the tax collected from the above-mentioned field is not correct and sufficient compared to reality.

According to Mr. Pham Xuan Vinh, Head of the Propaganda and Taxpayer Support Department (Binh Dinh Tax Department), the province's online accommodation management application has been applied throughout the province for many years, bringing many benefits to both state management agencies and accommodation establishments. Taxes collected from accommodation services in the province are based on the declaration of room plans, number of guests, and revenue of accommodation establishment owners shown on the province's online accommodation management application. It is worth mentioning that many establishments do not declare fully or "forget" to register room plans, do not declare the number of guests, and declare revenue to avoid taxes. Of the total 928 accommodation establishments under the tax management of the provincial Tax Department, up to now, only 279 establishments have declared revenue of nearly 126 billion VND; tax collected from accommodation services only reached 65 billion VND. Therefore, there is a paradox that in terms of statistics, the province recorded revenue from tourism and catering services in the first quarter of 2023 up to 2,858 billion VND.

The provincial Tax Department reviewed the list and sent an open letter to accommodation establishments. Photo: DR.

Quy Nhon City is a locality with many accommodation establishments that do not declare the number of guests and accommodation revenue. Currently, only 217/532 accommodation establishments comply with the province's regulations on registration and declaration of room diagrams, number of guests, and accommodation revenue on the online accommodation management application. The rest have registered room diagrams and number of guests, but the information is incomplete and they do not declare accommodation revenue.

Mr. Nguyen Quoc Tuan, Head of the Quy Nhon City Tax Department, said: The Department has sent a document requesting establishments to voluntarily declare room diagrams and the number of guests staying in accordance with the province's regulations; at the same time, it will proactively coordinate with relevant units to check and verify the number of guests who have stayed at the KDLT establishments but have not declared on the province's online management application, compare with the databases of functional sectors and data on the tax sector's electronic invoice application to calculate and collect taxes.

Similarly, in An Nhon Town, there are currently 65 accommodation establishments but only 7 establishments declare their accommodation revenue. Mr. Pham Trung Thang, Head of An Nhon Tax Department, said: We have directly supported the installation of online accommodation applications on computers and phones for each business and accommodation household and regularly urged establishments to voluntarily declare and fulfill their tax obligations, but in reality, many establishments do not declare their revenue. In the future, the Department will closely coordinate with functional agencies and local authorities to tighten the management and tax collection in this field, ensuring correct and sufficient collection.

Failure to register and declare room plans, number of guests and revenue from accommodation services may bring immediate benefits to establishments, but will cause many consequences that establishments cannot foresee. Therefore, along with implementing many measures to facilitate organizations and individuals to develop accommodation services, the Provincial Tax Department has stepped up propaganda and guidance for accommodation establishments to register and use the province's online accommodation management software. At the same time, it has publicly posted a list of accommodation establishments that have and have not registered room plans, have not declared the number of guests and revenue from accommodation services on the electronic information portal of the Provincial Tax Department for establishments and functional sectors to know. The Provincial Tax Department has also sent an open letter requesting establishments to voluntarily declare and pay taxes in accordance with regulations.

Mr. Nguyen Dau, Director of the Provincial Tax Department, said: “In tax collection, the provincial Tax Department focuses on propaganda and mobilization work so that taxpayers voluntarily fulfill their tax obligations. When open letters, reminders and warnings have been sent many times, but the trading establishments deliberately do not declare and pay taxes according to regulations, the Tax Department will report and advise the Steering Committee for preventing budget losses of localities to establish inspection teams, conduct inspections, verifications and strict handling.”

Dr. PHAM

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