The directive clearly states that Vietnam’s digital economy has strongly developed in recent years, importantly bolstered by e-commerce. To enhance State management of e-commerce and business on digital platforms, the Government and the Prime Minister issued many policies, regulations and drastic measures regarding these matters. On that basis, the Ministry of Finance and relevant ministries and agencies introduced solutions to reform and reduce administrative procedures, modernize and apply information technology to tax and e-commerce, thus supporting and promoting the widespread application of e-commerce in businesses and the community. This will help build a healthy, competitive and sustainable e-commerce market.

The rapid and explosive development of e-commerce has posed considerable challenges to authorities in administering e-commerce business and tax. Ensuring equality and fairness principles and big data-based risk management, adapting to changes in the business environment on digital platforms, and especially seeking close coordination among relevant authorities to fully manage participants, control payment transactions, and authenticate information of business organizations, individuals, and taxpayers are some of the challenges. Compliance with these principles will help ensure a fair and friendly business environment, jointly develop and promote great values of e-commerce to individuals, businesses, and the economy of Vietnam, and make commensurate contributions to the State Budget.

To enhance the effect and efficiency of digital transformation in administering e-commerce, online business, cross-border business and data connectivity and sharing among relevant agencies to support e-commerce development, combat tax loss and ensure monetary security, the Prime Minister requested the Ministry of Finance to work with related bodies to complete amendments to tax policies and laws in connection with e-commerce, reduce administrative procedures and registration/declaration bodies, adopt solutions to collect tax at source, prevent tax loss, and impose strict sanctions on tax and customs violations.

The ministry was requested to direct the General Department of Taxation to build a tax management database for e-commerce and business on digital platforms to apply big data-enabled risk management in tax administration. The deadline for completion is 2023 at the latest.

The ministry will lead the construction of detailed plans on data connectivity and sharing with the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Public Security, the State Bank of Vietnam and relevant agencies to strengthen tax administration for e-commerce business and cross-border supply of digital products and services. It will develop specifications and standards for data connectivity and sharing. The deadline for completion is the third quarter of 2023.

The ministry will cooperate with the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Public Security, the State Bank of Vietnam and relevant agencies to standardize, digitize, connect and share data on e-commerce according to specific roadmaps of each ministry or sector. For example, it will request the Ministry of Public Security to coordinate with the Ministry of Finance to develop a detailed plan on data connection and sharing for the national population database to switch to using personal identification codes which will be used as tax identification codes as per the Law on Tax Administration 38/2019/QH14. Individuals have advertising income from the provision of digital information content products and services on cross-border video-sharing platforms in cyberspace or buy and sell goods and services on e-commerce websites and social networks. The deadline for completion is the third quarter of 2023.