What activities are included in the National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024? Are incomes from business on e-commerce platforms taxable?

What activities are included in the National E-commerce Week and Online Friday of Vietnam 2024?

The Deputy Minister of Industry and Trade issued Decision 2821/QD-BCT 2024 regarding the organization of the "National E-commerce Week and Vietnam Online Shopping Day - Online Friday 2024".

Based on subsection 4 of Section 2 of the Plan to organize the "National E-commerce Week and Vietnam Online Shopping Day - Online Friday 2024" issued together with Decision 2821/QD-BCT 2024, the following activities are prescribed in the National E-commerce Week and Vietnam Online Shopping Day - Online Friday 2024 Program:

- Implementation of the "National E-commerce Week", which includes: direct and online seminars with topics on e-commerce and digital technology; interactive activities for consumers in the online environment; activities to promote, disseminate, and provide experiences for consumers, businesses, and governmental agencies.

- Implementation of the "60-hour Vietnam Online Shopping Day – Online Friday 2024" on websites and applications under the Program, providing nationwide promotional shopping codes on platforms and promotional product/service programs of major businesses operating in production and distribution through e-commerce.

- Organization of the Experience Space, exhibition of genuine products and digital transformation solutions of Vietnamese enterprises in Hanoi and centrally-run provinces and cities. Businesses participate in displaying and introducing digital technology products and e-commerce solutions for people to directly engage in experiences, thereby promoting regional e-commerce connections, building trust with businesses and consumers about products and services.

- Organization of activities responding to the E-commerce Week to enhance the spirit of businesses and consumers to "break through" at the end of the year in all fields, creating a bond between strong spirit and steely spirit in business activities, encouraging the participation of all entities in e-commerce and traditional transactions.

What activities are included in the National E-commerce Week and Online Friday of Vietnam 2024? (Image from the Internet)

Are income business on e-commerce platforms taxable in Vietnam?

According to the provisions of Clause 1, Article 2 of Circular 40/2021/TT-BTC on applicable entities, as follows:

Applicable Entities

1. Business households and individuals engaged in production, and trading goods and services in all sectors and industries as prescribed by law, including certain cases such as:

a) Practicing independently in fields and industries that are licensed or have practicing certificates as prescribed by law;

b) Acting as agents selling at set prices for lottery agents, insurance agents, and multi-level marketing agents with individuals directly contracting with lottery companies, insurers, or multi-level marketing companies;

c) Cooperating in business with organizations;

d) Engaging in agriculture, forestry, salt production, aquaculture, and fishing that do not meet exemption conditions under VAT and personal income tax law;

e) E-commerce activities, including cases where individuals earn income from digital information products and services as prescribed by e-commerce law.

...

Additionally, according to Article 4 of Circular 40/2021/TT-BTC stipulating tax calculation principles:

Tax Calculation Principles

1. The principle of calculating taxes for business households and individuals is implemented according to current legal provisions on VAT, personal income tax, and relevant legal documents.

2. Business households and individuals with an annual revenue from production and business activities of up to 100 million VND are not required to pay VAT and personal income tax according to the legal provisions on VAT and personal income tax. Business households and individuals must declare taxes accurately, truthfully, comprehensively, and submit tax documents on time; they are responsible before the law for the accuracy, truthfulness, and completeness of tax documents according to the regulations.

3. Business households and individuals operating as a group or family, the revenue threshold of 100 million VND/year to determine individuals not required to pay VAT, and personal income tax is determined for one (01) sole representative of the group or family in the tax year.

Thus, individuals conducting business on e-commerce platforms will be required to pay VAT and personal income tax if their revenue exceeds 100 million VND in a calendar year.

What are responsibilities of enterprises and individuals engaged in e-commerce in Vietnam?

According to Section 1 of Official Dispatch 3723/CTCTH-TTHT 2024, individuals engaged in e-commerce have the following responsibilities:

- Accurately, truthfully, and comprehensively declare taxes, submit tax documents on time; they are responsible before the law for the accuracy, truthfulness, and completeness of tax documents.

- Fully and promptly pay taxes, late payment fees, and fines at the correct time and place.

- Comply with accounting, statistical, and invoice usage regulations as prescribed by law.

- Accurately, truthfully, and comprehensively record activities that generate tax obligations, tax deductions, and transactions required to declare tax information.

- Prepare and deliver invoices and documents to buyers for the exact quantity, classification, and actual payment value when selling goods and providing services as prescribed by law.

Official Dispatch 3723/CTCTH-TTHT 2024...Download