Blog > Marketplace News > Vietnam Plans to Introduce Measures to Restrict E-commerce Sellers with Tax Arrears From Leaving the Country
Vietnam Plans to Introduce Measures to Restrict E-commerce Sellers with Tax Arrears From Leaving the Country
Jayson 28 Feb 2024 12:27
According to Vietnamese media reports, the Vietnam General Administration of Taxation held a meeting last week to discuss the loss of e-commerce tax revenue and stated that e-commerce sellers such as Shopee, Lazada, and Tiki who have not fulfilled their tax obligations will be banned from leaving the country.
Vietnamese tax regulations require sellers to pay value-added tax and personal income tax if their annual online business income exceeds VND100 million.
Mei Chunqing, director of the State Administration of Taxation, said it is not easy for tax authorities to comprehensively manage revenue sources, determine taxpayers and tax bases, clearly distinguish income types, and control business transactions and cash flow.
In the future, the State Administration of Taxation will continue to strengthen e-commerce tax management. The list of e-commerce sellers who owe taxes will be published in the mass media. At the same time, the agency will enforce measures including prohibiting taxpayers who have not fulfilled their obligations from withdrawing.
In recent years, these measures have been mainly targeted at individuals and business representatives who have not fulfilled their tax obligations, especially e-commerce sellers. The tax authorities have mainly carried out publicity, encouragement and supervision, requiring organizations, business individuals and third parties to proactively declare and pay taxes.
According to the Ministry of Industry and Trade, Vietnam's retail e-commerce market will reach approximately US$20.5 billion by 2023, an increase of approximately US$4 billion (equivalent to 25%) compared with 2022.
Vietnamese tax regulations require sellers to pay value-added tax and personal income tax if their annual online business income exceeds VND100 million.
Mei Chunqing, director of the State Administration of Taxation, said it is not easy for tax authorities to comprehensively manage revenue sources, determine taxpayers and tax bases, clearly distinguish income types, and control business transactions and cash flow.
In the future, the State Administration of Taxation will continue to strengthen e-commerce tax management. The list of e-commerce sellers who owe taxes will be published in the mass media. At the same time, the agency will enforce measures including prohibiting taxpayers who have not fulfilled their obligations from withdrawing.
In recent years, these measures have been mainly targeted at individuals and business representatives who have not fulfilled their tax obligations, especially e-commerce sellers. The tax authorities have mainly carried out publicity, encouragement and supervision, requiring organizations, business individuals and third parties to proactively declare and pay taxes.
According to the Ministry of Industry and Trade, Vietnam's retail e-commerce market will reach approximately US$20.5 billion by 2023, an increase of approximately US$4 billion (equivalent to 25%) compared with 2022.
