Tax sector focuses on tax inspection of e-commerce enterprises in 2024
According to Minister of Finance Ho Duc Phoc, in order to carry out the task of collecting the budget, the Ministry of Finance is coordinating with relevant agencies to implement many solutions, including collecting potential revenues that have not been collected before, such as taxes from cross-border and domestic e-commerce platforms.
1. Implementing many solutions to increase budget revenue
On the morning of May 23, speaking at the discussion session at the National Assembly group, Minister of Finance Ho Duc Phoc – National Assembly delegate of Binh Dinh province said that 2022 is the first year of implementing electronic invoices (from July 1, 2022), contributing to increasing state budget revenue with a significant increase.
2022 is also the year the Ministry of Finance implements the collection of real estate transfer tax in accordance with the provisions of the Law on Tax Administration, thereby contributing to increasing budget revenue by about 21 trillion VND.
Explaining the concerns of National Assembly deputies about fiscal policy management, especially the decrease in the budget collection rate in 2023 compared to 2022, Minister Ho Duc Phoc stated that the reason why the budget collection rate in 2023 is lower than in 2022 is because the economic growth rate in 2022 is 8.02%, while the growth rate in 2023 is only 5.05%.
E-Commerce Tax Rules in 2024
2. Collecting nearly 50 trillion VND in taxes from online business
Regarding the collection of taxes on domestic e-commerce platforms, Minister Ho Duc Phoc stated that this year, the Ministry of Finance will focus on collecting taxes on online trading. Accordingly, the Ministry has connected the tax authority’s database to the population database of the Ministry of Public Security and coordinated with the State Bank to control payments on e-commerce platforms.
The Ministry also requested the State Bank to increase non-cash payments. Through this, taxes will be collected in this field. The Minister informed that in the past two quarters, nearly 50 trillion VND has been collected from these revenues.
“This is a great effort of the Ministry of Finance, with initiatives, creativity, and pioneering in technology application, it can be implemented”, the Minister emphasized, and said that the Ministry has built software to control electronic invoices and electronic invoices online to prevent fraud in value-added tax (VAT) refunds.
In addition, the Ministry also proposed a solution to connect cash registers in restaurants, hotels, and businesses to tax authorities, and at the same time proposed a solution to dial invoices according to lucky invoice codes… to encourage people to get invoices, if they win the code, they will be rewarded.
Recently, the Ministry of Finance has implemented the issuance of electronic invoices for each sale for gas stations nationwide. In just a short time, 100% of stores nationwide have issued invoices for each sale. These data are also connected to tax authority data.
“We must constantly be creative, have initiatives, and apply the law correctly to collect potential revenues, collect correctly and fully into the budget in the context of the country’s economy and businesses facing many difficulties,” the Minister stated.
2024 Guide to Tax Changes
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Regarding fiscal policies to ease people’s burdens and support businesses, Minister Phoc said that this year, the Ministry of Finance continues to implement solutions on taxes, fees, and charges to support businesses and people. In the past 3 years, each year, many taxes, fees, charges, and land rents have been reduced and extended by an average of about 200 trillion VND/year.
Along with that, the National Assembly is currently proposing a plan to continue reducing VAT from 10% to 8% in the last 6 months of 2024 for many subjects as is being implemented. These are solutions to support businesses and people, increase budget collection, balance fiscal policies, use increased and excess revenue sources to invest in highway systems, airports, ports, and key national projects.
3. Deploying many solutions to increase budget revenue
On the morning of May 23, speaking at the discussion session at the National Assembly group, Minister of Finance Ho Duc Phoc – National Assembly delegate of Binh Dinh province said that 2022 is the first year of implementing electronic invoices (from July 1, 2022), contributing to increasing state budget revenue with a significant increase. According to the Minister, 2022 is also the year of implementing the electronic information portal and collecting taxes on cross-border e-commerce platforms; at the same time, implementing the “lucky invoice” program.
Accordingly, there are currently 93 foreign technology organizations and companies that have paid taxes in Vietnam, such as YouTube, Google, Facebook, Microsoft… have declared and paid taxes on the electronic information portal for cross-border e-commerce platforms of the Ministry of Finance, reaching 14,500 billion VND.
If your online business has potential revenues that have not been collected before, such as taxes from cross-border and domestic e-commerce platforms, please contact us to have professional and trustful consulting service about this matter.
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