Four major challenges for businesses in cross-border e-commerce
The global cross-border e-commerce market estimated to reach nearly $800 billion in 2024 and projected to grow at an average rate of 30.50% until 2031.
VECOM proposes minimizing costs for e-commerce platforms
The Vietnam E-commerce Association (VECOM) has said that the operation of e-commerce platforms remains quite difficult and requires major investment and high operating costs, with most posting losses. It therefore proposed to the General Department of Taxation and State management agencies that cost and compliance burdens be minimized and conditions created for the development of e-commerce platforms.
Tax collections through e-commerce platforms the best approach
A representative from the General Department of Taxation has said that business individuals declaring and paying taxes through e-commerce platforms is the optimal solution in effective tax management, contributing to reforming administrative procedures and reducing the number of tax declarations.
Draft on tax declarations by e-commerce platforms unsuitable
According to the Vietnam Chamber of Commerce and Industry (VCCI), many elements of a draft Decree from the Ministry of Finance on e-commerce platforms are not appropriate. Requiring platforms to declare and pay taxes on behalf of vendors, for example, will create an additional cost burden and countless difficulties in determining revenue in the tax period and present a risk of underpayment or overpayment of taxes. Provisions in the draft also conflict with provisions in other laws.
Draft to change tax regime for e-commerce platforms
According to a draft Decree from the Ministry of Finance amending and supplementing guidelines for the Tax Administration Law, owners of e-commerce platforms are to declare tax and pay taxes on behalf of sellers of goods and services on their platforms. Information must now be automatically provided online to tax authorities quarterly.