More than 13,400 business Facebook account owners required to file tax returns

Recently, more than 13,400 Facebook account holders with online advertising and sales activities received messages from the Hanoi Tax Department requesting tax declaration.

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The Hanoi Tax Department recently issued a document announcing and guiding the registration and declaration for individuals engaged in e-commerce business activities.

At the same time, the Department also sent SMS messages to account holders identified as not having registered for tax, instructing them to access the tax authority's information page (http://hanoi.gdt.gov.vn) to access tax registration and declaration information.

The above move was made on the basis of the Project on tax management for e-commerce business activities, which was built since the end of March this year.

Mr. Vien Viet Hung, Deputy Director of Hanoi Tax Department, said that e-commerce is a form of business based on information technology infrastructure. Therefore, tax authorities also need to use information technology as an effective tool to manage taxes for this activity.

The Hanoi Tax Department has determined that in order to manage online business, it is necessary to make people understand their responsibilities first, so the Department is focusing on guiding, supporting and encouraging business people to register according to the provisions of the Law on Tax Administration, the Law on Value Added Tax, the Law on Income Tax and voluntarily fulfill their obligations according to the regulations.

Accordingly, Vietnamese citizens with business activities must register for tax and if the sales revenue exceeds the taxable revenue threshold (the current prescribed revenue threshold is from 100 million VND/year or more), they are obliged to declare and pay value added tax and personal income tax to the State budget.

In the case that the Facebook account owner has a business registration, has a store or shop that has completed tax registration procedures (has been granted a tax code by the tax authority), it is not required to re-register or declare.

The tax authority will organize the management and supervision of tax declaration and collection activities in this form. At the same time, it will warn that if any subject is found not complying with tax registration and declaration, it will be handled according to the provisions of law.

Previously, the Ho Chi Minh City Tax Department also sent invitations to about 13,500 account holders with e-commerce business activities to declare and pay taxes.

Thus, up to now, both big cities, Hanoi and Ho Chi Minh City, have implemented tax collection for businesses operating in the form of online sales.

Ms. Le Thi Thu Huong, Deputy Director of the Ho Chi Minh City Tax Department, said that the issue of tax collection for online businesses has been mentioned quite a lot because of the complexity and difficulty in management. However, the management agency affirmed that it will calculate tax collection not only for sales on Facebook but also on social networks such as Instagram, YouTube...

Agreeing with this policy, experts said that this tax collection is to create fairness for taxpayers. Many individuals selling on Facebook are earning huge revenue but do not have to pay tax, while those selling similar items but using stores still have to pay tax.

Mr. Nguyen Quy Trung, Deputy Director of the Policy Department, General Department of Taxation, said that when raising the issue of tax collection for those doing business on Facebook, there will certainly be reactions from public opinion, especially since this type of business is seasonal. Therefore, the tax authority will coordinate with specialized sectors such as banking, industry and trade, information and communication to conduct research; on that basis, propose policies suitable for e-commerce business activities.

According to Thu Ha/chinhphu.vn