Facebook sales tax up to 5% of revenue

Taxes and fees that online sellers must pay include business license fees, VAT, personal income tax, etc.

Online sales tax rate from 0.5-5% on revenue. Photo: PV.

The Ho Chi Minh City Tax Department has just announced the obligation to register for tax and declare and pay tax in business activities via e-commerce, including: selling goods and services via the internet, social networks (facebook) and other forms of e-commerce.

Accordingly, business individuals with revenue from selling goods and services from all forms of business (including online business) of over 100 million VND per year are required to register, declare and pay taxes.

Taxes and fees payable include business license fees, value added tax, personal income tax, special consumption tax, environmental protection tax (if any), etc.

Specifically, distributors and suppliers of goods pay 1% value-added tax and 0.5% personal income tax on total revenue; service providers pay 5% value-added tax and 2% personal income tax on revenue; businesses in transportation and services associated with goods pay 3% value-added tax and 1.5% personal income tax on revenue. Other business activities pay 2% value-added tax and 1% personal income tax.

Regarding business license fees, individuals with annual revenue of over 500 million VND pay 1 million VND per year; revenue of over 300 to 500 million VND and revenue of over 100 to 300 million VND pay 500,000 VND and 300,000 VND per year, respectively.

According to VNE