Regarding Tax administration for e-commerce businesses, Customs News spoke with Mr. Nguyen Duc Huy, Deputy Director of the Office of the General Department of Taxation.

Mr. Nguyen Duc Huy-Deputy Director of Office of the General Department of Taxation. 

Through the practical deployment, what are the difficulties in tax collection for e-commerce business activities, Sir?

The first difficulty is obstacles in the process of collecting records.

Specifically, transactions between organizations and individuals engaged in e-commerce activities are often e-transactions, so the tax authority faces difficulties in collecting data. To develop a tax administration database for e-commerce activities, the tax authority has coordinated with relevant authorities such as banks andmedia agencies. However, the data collection is still limited and insufficient; some banks and payment intermediaries, as well asshipping intermediaries, refuse to provide data because the information technology system is not able to support, provide and ensure confidentiality of customer information.

Another difficulty is problems in taxpayer identification. Because most data of commercial banks is old data, meaningmany taxpayers are no longer at theaddress according to the data of the banks and Telegraphic Transfer Remittance. The verification for the taxpayer’s information, bank accounts and in shipping companies faces difficulties or cannot be implemented.

To effectively implement tax administration for e-commerce and prevent State revenue loss, what solutions willthe Tax sector deploy in the near future?

Regarding the coordination of tax agencies with competent authorities, the Tax sector will coordinate with the Ministry of Public Security and the Ministry of Information and Communications in determining taxpayer identification. At the same time, collecting data from shipping companies, shipping software; data from banks, electronic wallets to determine the cash flow. On the basis of collected information to perform tax administration for tax payers.

For the tax administration for taxpayers, the General Department of Taxation will request local tax departments to effectively publicize fororganizations and individuals doing e-commerce business through the following forms: holding training conferences on tax policies; sending Tax authority letters to organizations and individuals. Thereby, creating conditions for organizations and individuals to fully understand the contents of tax policies on e-commerce business.

The Tax sector will also organize inspections, examinations, and strictly handle cases of deliberately not making tax declarations and payment. In case of intentional tax fraud or evasion, depending on the violation level, the Tax authority will transfer the taxpayer’s dossier to the police authority for investigation, verification and handling in accordance with law.