{"id":10701,"date":"2024-12-23T12:37:23","date_gmt":"2024-12-23T05:37:23","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=10701"},"modified":"2024-12-23T13:46:29","modified_gmt":"2024-12-23T06:46:29","slug":"tax-administration-for-e-commerce-new-regulations-and-important-remarks","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/tax-administration-for-e-commerce-new-regulations-and-important-remarks\/","title":{"rendered":"Tax administration for e-commerce, new regulations and important remarks"},"content":{"rendered":"<p>With the strong development of e-commerce and digital platforms, tax management for these business activities has become increasingly urgent. To enhance management efficiency and ensure tax obligation fairness, Law No. 56\/2024\/QH15 has amended and supplemented certain provisions of the 2019 Law on Tax Administration. Notably, new regulations concerning e-commerce and digital platform business activities have been introduced, particularly regarding the responsibilities of domestic and foreign suppliers, as well as households and individuals conducting business on these platforms, in terms of tax registration, declaration, and payment.<\/p>\n<figure id=\"attachment_10672\" aria-describedby=\"caption-attachment-10672\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10672 size-medium\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-karolina-grabowska-4968391-1-600x400.jpg\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-karolina-grabowska-4968391-1-600x400.jpg 600w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-karolina-grabowska-4968391-1-1200x800.jpg 1200w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-karolina-grabowska-4968391-1-768x512.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-karolina-grabowska-4968391-1-1536x1024.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-karolina-grabowska-4968391-1-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-10672\" class=\"wp-caption-text\">Souece: pexels-karolina-grabowska-4968391<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/tax-administration-for-e-commerce-new-regulations-and-important-remarks\/#1_Tax_Obligations_of_Foreign_Suppliers\" >1. Tax Obligations of Foreign Suppliers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/tax-administration-for-e-commerce-new-regulations-and-important-remarks\/#2_Obligations_of_E-commerce_Platform_and_Digital_Platform_Management_Organizations\" >2. Obligations of E-commerce Platform and Digital Platform Management Organizations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/tax-administration-for-e-commerce-new-regulations-and-important-remarks\/#3_Tax_Obligations_for_Business_Households_and_Individuals\" >3. Tax Obligations for Business Households and Individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/tax-administration-for-e-commerce-new-regulations-and-important-remarks\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Tax_Obligations_of_Foreign_Suppliers\"><\/span>1. Tax Obligations of Foreign Suppliers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the new regulations, foreign suppliers engaging in e-commerce, digital platform-based business, or providing other services in Vietnam are obligated to directly or authorize a representative to:<\/p>\n<ul>\n<li>Tax registration in Vietnam.<\/li>\n<li>Tax declaration in accordance with regulations of the Ministry of Finance.<\/li>\n<li>Complete payment of tax to the state budget.<\/li>\n<\/ul>\n<p>This regulation increases tax management for foreign enterprises operating in Vietnam without a permanent establishment, ensuring fairness for domestic suppliers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Obligations_of_E-commerce_Platform_and_Digital_Platform_Management_Organizations\"><\/span>2. Obligations of E-commerce Platform and Digital Platform Management Organizations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The new legal regulation emphasizes the role of e-commerce platform and digital platform management organizations. Accordingly, these organizations (both domestic and foreign) that facilitate payments or engage in other digital economic activities are required to: withhold, declare, and pay taxes on behalf of business households and individual businesses operating on e-commerce platforms. With this management approach, competent authorities can control income at its source, similar to how income from foreign contractors generating revenue in Vietnam is managed.<\/p>\n<p>What challenges do e-commerce platform management organizations face, primarily, they will need involve expanding their operational workforce to oversee and fulfill financial obligations to tax authorities on behalf of businesses operating on the platform. This inevitably leads to increased overall operating costs for both the enterprise and the platform, internal processes must develop regulations and workflows for managing transactions with platform businesses. Current business contracts will also need to include provisions for withholding tax obligations before disbursing any revenue to businesses operating on the platform.<\/p>\n<p>In the upcoming timeline, guiding documents will be issued, which we believe will help businesses better understand the obligations they must fulfill on behalf of individuals and organizations conducting business on e-commerce platforms, digital channels, and applications. This will also enable businesses to clearly define the scope of responsibilities for each party involved.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Tax_Obligations_for_Business_Households_and_Individuals\"><\/span>3. Tax Obligations for Business Households and Individuals<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If business households and individuals operating on digital platforms are not subject to tax withholding and payment on their behalf, they are responsible for: (i) Registering for tax with the tax authority (ii) Declaring and paying taxes in accordance with legal regulations. This regulation establishes a clear legal framework for business households and individuals to fulfill their tax obligations while reducing tax evasion in e-commerce activities.<\/p>\n<p>The updates to regulations, particularly in the 2019 Law on Tax Administration, concerning e-commerce and digital platform business activities, mark a significant step forward in adapting Vietnam\u2019s legal framework to the rapid development of the digital economy. These changes bring many positive impacts, contributing to an improved business environment while promoting transparency and fairness in the e-commerce sector.<\/p>\n<p>First, one of the most notable impacts of the new regulations is strengthening tax management, thereby reducing state budget revenue losses. In the context of rapidly growing e-commerce with many cross-border transactions that are difficult to control, the new measures are expected to enhance monitoring efficiency and ensure that financial obligations are fully met. At the same time, these regulations aim to create a level playing field between foreign and domestic suppliers. This helps reduce competitive imbalances, as foreign suppliers were previously subject to less strict oversight than domestic businesses.<\/p>\n<p>Another important aspect is that these regulations will raise tax compliance awareness among organizations, business households, and individuals operating on e-commerce platforms. Strict compliance with tax regulations not only ensures transparency and legality in business operations but also helps businesses build credibility and develop sustainably in an increasingly competitive environment.<\/p>\n<p>However, alongside these positive impacts, related organizations and individuals must proactively understand and adapt to the new regulations. Delays or non-compliance could lead to unnecessary legal risks, affecting business operations. Foreign suppliers, platform management organizations, and individual businesses need to ensure a clear understanding and proper implementation of the new regulations to maintain legal compliance and operational stability.<\/p>\n<p>Overall, these amendments affirm Vietnam\u2019s efforts to adjust its policies in line with the evolving digital economy while creating opportunities to improve management quality and promote fair and transparent development in the e-commerce sector. Collaboration between regulatory authorities and stakeholders in providing guidance and support will be crucial to ensuring the effective implementation of these new policies in practice.<\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 18\/12\/2024<\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer \u00a0at\u00a0 <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/summary-of-the-latest-legal-regulations-for-news-websites\/\">Summary of the latest legal regulations for News websites<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/conditions-and-procedures-for-obtaining-a-business-license-for-online-video-games\/\">Conditions and procedures for obtaining a business license for online video games<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/transfer-of-executive-rights-legal-notes-for-new-legal-representatives\/\">Transfer of executive rights, legal notes for new legal representatives<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/10701#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>With the strong development of e-commerce and digital platforms, tax management for these business activities has become increasingly urgent. To enhance management efficiency and ensure tax obligation fairness, Law No. 56\/2024\/QH15 has amended and supplemented certain provisions of the 2019 Law on Tax Administration. Notably, new regulations concerning e-commerce and digital platform business activities have&#8230;<\/p>\n","protected":false},"author":4,"featured_media":10672,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-10701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/10701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=10701"}],"version-history":[{"count":2,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/10701\/revisions"}],"predecessor-version":[{"id":10703,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/10701\/revisions\/10703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/10672"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=10701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=10701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=10701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}