General Department of Taxation Requests Inspection of Declarations and Tax Payments for Livestream Online Sales
General Department of Taxation Requires Inspection of Tax Declaration and Payment for Livestream Online Sales?
On June 4, 2024, the General Department of Taxation issued Official Telegram 01/CD-TCT in 2024 on the resolute and effective implementation of tax management for e-commerce activities and electronic invoices generated from point-of-sale systems.
In Section 1 of Official Telegram 01/CD-TCT in 2024, the General Department of Taxation requires as follows:
1. Conduct a comprehensive and synchronized review and inspection of tax declaration, payment, and use of electronic invoices by organizations, business households, and individuals engaged in e-commerce, trading on e-commerce platforms, affiliate marketing, providing digital content products, and receiving income from advertising activities, software provision... especially organizations and individuals conducting online business, livestreaming for selling goods and services,...
- Implement solutions to apply electronic invoices generated from point-of-sale systems from August 1, 2024, for the following types of businesses:
- Selling golf tickets and providing services within the golf course.
- Trading apparel, equipment, accessories, etc., used for playing golf.
Develop plans and implement inspection and auditing activities for the aforementioned types to ensure that business entities understand and fully recognize their responsibilities and commit to accurately declaring and paying taxes as required, promoting the deployment of electronic invoices generated from point-of-sale systems, and combating tax revenue loss for the state budget.
Urgently deploy the mandate to the heads of Tax Departments, leaders of the Departments, Sub-departments, and specifically to the officials managing the units to work, propagate policies, and legal regulations concerning tax declaration, payment, and the use of electronic invoices in transactions to each business entity in the fields of e-commerce, golf course business, golf support services...
Direct the review, statistics, and assessment of tax management activities to plan for the application of electronic invoices generated from point-of-sale systems for business types with revenue from selling tickets to tourist spots, entertainment activities,... report to the General Department of Taxation before August 1, 2024.
Thus, to improve management efficiency and prevent tax loss for e-commerce activities, the General Director of the General Department of Taxation requires the Directors of the Provincial Tax Departments, City Tax Departments, and the Large Business Tax Department to urgently and comprehensively check the tax declaration and payment, and the use of electronic invoices by organizations, business households, and individuals conducting online business and livestreaming sales.
General Department of Taxation requires inspection of tax declaration and payment for livestream online sales? (Image from the Internet)
How Much Income from Online Sales Requires Personal Income Tax Declaration?
According to Article 4 of Circular 40/2021/TT-BTC, the principles for tax calculation are stipulated as follows:
Tax Calculation Principles
Tax calculation principles for business households and individuals are implemented according to the current legal provisions on VAT, personal income tax (PIT), and related normative documents.
Business households and individuals with an annual revenue from production and business activities of VND 100 million or less are exempt from VAT and PIT as per the legal provisions on VAT and PIT. Business households and individuals are responsible for accurately, honestly, and fully declaring taxes and submitting tax documents on time; being accountable before the law for the accuracy, honesty, and completeness of tax documents as required.
For business households and individuals operating as a group of individuals or households, the annual revenue threshold of VND 100 million or less to determine exemption from VAT and PIT for each year is considered for one (01) sole representative of the group of individuals or households.
Thus, if an individual engaging in online business has an annual income of VND 100 million or more, they must declare and pay PIT.
When is Personal Income Tax Reduction Applicable?
According to Article 5 of the Personal Income Tax Law 2007, tax reduction is applicable in the following cases:
Taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay taxes may be considered for a tax reduction corresponding to the extent of the damage but not exceeding the tax payable amount.
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