Utilize e-commerce data effectively to enhance tax and customs management efficiency

Tue, 18 Jun 2024 10:47:00  |  Print  |  Email   Share:

According to Mr. Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), effectively utilizing e-commerce data can greatly enhance the management of import-export activities, resulting in high efficiency for tax and customs management.


Chairman of VCCI Pham Tan Cong spoke at the Conference. Photo: VGP

E-commerce data can greatly facilitate effective management of import-export activities

Speaking at the Government's conference reviewing the first year of clearing "bottlenecks" in the implementation of Project 06 and promoting connectivity and data sharing for E-commerce data development, and combating tax losses on June 10, 2024, Chairman of VCCI straightforwardly pointed out that recently, a segment of retail businesses has shifted to E-commerce data to avoid inspections and audits by regulatory agencies, including the Tax Department. This poses a significant challenge for tax management, but according to Mr. Pham Tan Cong, it also presents an opportunity for better tax management of retail establishments.

Mr. Pham Tan Cong analyzed that E-commerce data involves transactions conducted electronically. Information about these transactions resides in the databases of intermediaries such as E-commerce data platforms, banking applications, and courier services. Therefore, if these data are collected for tax management purposes, the effectiveness could be substantial. Furthermore, E-commerce data can also contribute effectively to managing import-export activities, including tax collection from imported and exported goods and specialized inspections, thereby creating a very positive impact on customs operations.

"The potential of leveraging data from E-commerce data activities for tax and customs management is immense and can yield high efficiency. This requires coordination among Customs, Tax authorities, Police, and platform service providers in E-commerce data such as E-commerce data platforms, banks, and logistics providers," Mr. Cong emphasized.


Representatives from several ministries and sectors attended the conference. Photo: VGP

Regarding the coordination among ministries and sectors at the conference, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan announced that in the near future, the Ministry will connect with the General Department of Taxation to transfer data from 48,348 e-commerce websites/applications for sales and 1,218 websites/applications providing e-commerce services immediately after completing the system integration of the two units in June 2024 (this effort is ahead of schedule by 1.5 years).

At the State Bank of Vietnam (SBV), Governor Nguyen Thi Hong stated that in early November 2023, the SBV worked with the Tax authorities regarding cross-border service provision activities. The SBV directed banks and payment intermediaries to connect and provide information to Tax authorities. As of now, financial institutions have provided over 130 million taxpayer payment accounts to the Ministry of Finance.

Regarding businesses, as a representative of the business community, Mr. Pham Tan Cong of VCCI mentioned that VCCI regularly consults with enterprises on the feasibility of connecting and sharing e-commerce data. In general, most opinions are in agreement with the benefits of data connection and sharing. For instance, managing e-commerce tax helps identify the consumption location of services for taxation purposes, utilizing reliable information such as physical addresses, IP addresses of customers, phone numbers, and cross-border payments.

Chairman of VCCI emphasized the need for more specific guidelines on utilizing such information to determine the export of services, especially those provided via the internet. This approach not only encourages businesses to export services but also boosts economic growth, resolves employment issues, earns foreign currency for the country, and strengthens national soft power.

Enhance supervision and inspection of livestream sales activities

To improve this work, ministries and sectors have also put forward some proposals and recommendations to the Ministry of Finance. The Deputy Minister of Industry and Trade proposed that the General Department of Taxation coordinate in sharing databases and enhance the management of e-commerce activities in June 2024; especially considering linking business tax identification numbers to assist the Ministry of Industry and Trade in identifying e-commerce enterprises. The Governor of the State Bank of Vietnam suggested that the Ministry of Finance unify the task of assigning the General Department of Taxation as the focal point for receiving and processing taxpayer payment account information from financial institutions, allowing other tax management agencies to access information from the Tax Department's database.

At the local level, Trinh Viet Hung, Chairman of the People's Committee of Thai Nguyen Province, proposed that the Ministry of Finance (General Department of Taxation) continue to coordinate with ministries and sectors to strengthen dissemination, education, and guidance for organizations and individuals conducting e-commerce to register for taxes, declare, and pay taxes. Simultaneously, there should be enhanced inspection and supervision of livestream sales activities and protection of consumers in the online space. He also requested that the State Bank of Vietnam increase inspections and oversight of payment transactions, direct financial institutions to cooperate in providing transaction information to functional agencies (Tax authorities, market management agencies, etc.) to facilitate tax management from e-commerce business activities as stipulated by law.

VCCI also suggested that the Tax Department continue studying recommendations from international organizations and review the experiences of other countries to propose suitable policy solutions.

"Businesses are ready to provide information, documents, and cooperate with the Tax authorities to develop policies that ensure accurate and sufficient revenue collection for the budget, while also maximizing favorable conditions for taxpayers, reducing administrative procedures, and tax risks," emphasized the Chairman of VCCI.

VCCI has closely collaborated with the Ministry of Finance and other ministries and sectors in drafting various legal documents related to taxes, e-commerce, providing feedback on amending decrees concerning electronic invoices, and managing import-export goods through e-commerce...

According to VCCI Chairman Pham Tan Cong, the opinions of businesses have been reflected by VCCI, and many of these opinions have been considered and accepted by relevant authorities. In general, businesses are relatively satisfied with the dialogue and consultation spirit in the legislative process conducted by financial sector units.


By: Hương Dịu - Customs News/Translator: LeAnh-Bizic

Source: https://haiquanonline.com.vn/tan-dung-tot-du-lieu-thuong-mai-dien-tu-tao-hieu-qua-quan-ly-thue-va-hai-quan-186943.html


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