Comprehensive inspection of tax declaration and payment in livestream sales and online business activities
General Department of Taxation Conducts Comprehensive Inspection on Tax Declaration and Payment in Online Sales and Livestreaming Activities?
On June 4, 2024, the General Department of Taxation issued Official Telegram 01/CD-TCT 2024 on effectively implementing tax management for e-commerce activities and e-invoices generated from cash registers.
The General Director of the General Department of Taxation requests the Directors of Provincial Tax Departments, City Tax Departments, and the Tax Department of Large Enterprises to promptly execute the following tasks:
- Comprehensive Inspection of E-commerce Entities
Conduct a thorough and synchronized inspection and review of tax declarations, tax payments, and the use of e-invoices by organizations, households, and individuals engaged in e-commerce, operating on e-commerce platforms, affiliate marketing, providing digital content products, and earning income from advertising activities and software provision... specifically focusing on online businesses, livestreaming video sales of goods and services,...
- Implement solutions to apply e-invoices generated from cash registers from August 1, 2024, for the following business types:
+ Selling golf tickets and providing services within golf courses;
+ Trading in golf apparel, equipment, accessories, etc.
- Develop plans and conduct inspections and audits for the mentioned business types so that the business entities understand, fully recognize their responsibilities, and commit to strictly following tax declaration and payment regulations, promoting the application of e-invoices generated from cash registers, and preventing state budget revenue losses.
- Urgently implement the task to the leaders of the Tax Departments, the leaders of the Divisions, Sub-departments, and specifically to each managing official of the unit to work and propagate the policies, legal provisions on tax declaration, payment, and use of e-invoices in transactions to each business entity in the field of e-commerce, golf course businesses, golf support services...
- Direct the review, statistical evaluation, and tax management work to develop plans to apply e-invoices generated from cash registers for business types with revenue from selling tickets to tourist attractions, entertainment activities,... and report to the General Department of Taxation before August 1, 2024.
Thus, the provincial and city tax departments, and the Department of Large Enterprises Taxation will promptly conduct a synchronized and comprehensive review and inspection of tax declarations, tax payments, and the use of e-invoices by online business organizations and individuals, livestreaming sales of goods and services in the near future.
Comprehensive inspection of tax declaration and payment in livestreaming sales and online business activities?
What Revenue Level Must an Individual Online Seller Reach to Pay Taxes?
Article 4 of Circular 40/2021/TT-BTC stipulates the principles of tax calculation as follows:
Principles of tax calculation
1. The principles of tax calculation for household businesses and individual businesses shall comply with the current legal regulations on VAT, personal income tax (PIT) and other relevant normative legal documents.
2. Household businesses and individual businesses with annual turnover from production and business activities of up to 100 million VND shall be exempted from VAT and PIT according to the regulations on VAT and PIT. Household businesses and individual businesses are responsible for accurate, honest, and full tax declaration and submitting tax returns on time; and are responsible before the law for the accuracy, honesty, and completeness of tax returns according to regulations.
3. For household and individual businesses operating in groups of individuals or households, the turnover threshold of up to 100 million VND/year to determine tax exemption for VAT and PIT shall be determined for a single representative of the group of individuals or households in the tax year.
Tax calculation is based on the following three principles:
- The principles of tax calculation for household businesses and individual businesses shall comply with the current legal regulations on value-added tax (VAT), personal income tax (PIT), and other relevant normative legal documents.
- Household businesses and individual businesses with annual turnover from production and business activities of up to 100 million VND shall be exempted from VAT and PIT according to the regulations on VAT and PIT. Household businesses and individual businesses are responsible for accurate, honest, and full tax declaration and submitting tax returns on time; and are accountable for the accuracy, honesty, and completeness of tax returns according to regulations.
- For household and individual businesses operating in groups of individuals or households, the turnover threshold of up to 100 million VND/year to determine tax exemption for VAT and PIT shall be determined for a single representative of the group of individuals or households in the tax year.
Household businesses and individual businesses selling online with an annual turnover of 100 million VND or more must pay VAT and PIT. If the turnover is below 100 million VND, they are exempted from VAT and PIT.
Responsibilities of Business Entities Selling on E-commerce Platforms?
Article 37 of Decree 52/2013/ND-CP specifies the responsibilities of business entities selling on e-commerce trading platforms as follows:
- Provide complete and accurate information as stipulated in Article 29 of Decree 52/2013/ND-CP to merchants and organizations offering e-commerce platform services when registering to use the service.
- Provide complete information about goods or services as required from Article 30 to Article 34 of Decree 52/2013/ND-CP when selling goods or providing services on the e-commerce platform.
- Ensure the accuracy and honesty of information about goods or services provided on the e-commerce platform.
- Comply with the provisions of Section 2, Chapter II of Decree 52/2013/ND-CP when implementing online ordering functions on the e-commerce platform.
- Provide information about their business activities when requested by competent state agencies to serve e-commerce statistical activities.
- Comply with the legal provisions on payment, advertising, promotion, intellectual property rights protection, consumer protection, and other relevant legal regulations when selling goods or providing services on the e-commerce platform.
- Fully fulfill tax obligations as required by law.
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