To complete the amendments to tax laws and policies on e-commerce in Vietnam

To complete the amendments to tax laws and policies on e-commerce in Vietnam (Internet image)

On May 30, 2023, the Prime Minister of Vietnam issued Directive 18/CT-TTg on promoting connectivity and data sharing for e-commerce development, combating tax loss, and ensuring monetary security.

To complete the amendments to tax laws and policies on e-commerce in Vietnam

Specifically, the Prime Minister requested the Ministry of Finance to assume the prime responsibility for, and coordinate with other ministries and branches in, completing the amendment of tax laws and policies related to e-commerce, reducing administrative procedures, reducing declarations, strengthening the implementation of tax collection solutions at source, combating tax loss, and strictly implementing sanctions for handling tax and customs violations.

At the same time, focus on implementing the following tasks and solutions:

- Direct the General Department of Taxation to build a tax management database for e-commerce and businesses on digital platforms to apply risk management in tax administration to a large database.

The deadline for completion is 2023 at the latest.

- Lead the development of detailed plans on data connection and sharing with the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Public Security, the State Bank of Vietnam, and relevant agencies to strengthen tax administration for e-commerce business activities, cross-border supply of digital products and services; develop standards for connection and data sharing.

The deadline for completion is the third quarter of 2023.

- Assuming the prime responsibility for and coordinating with the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Public Security, the State Bank of Vietnam, and relevant agencies to standardize, digitize, connect, and share data on e-commerce according to the specific roadmap of each ministry and sector.

To strengthen sanctions to handle violations of information provision in e-commerce in Vietnam

In order to increase effectiveness and efficiency and continue to promote digital transformation in the state management of e-commerce activities, the Prime Minister requested the Ministry of Industry and Trade to perform the following tasks:

- Assuming the prime responsibility for, and coordinating with ministries and branches in, completing amendments to policies and laws on state management of e-commerce, which strengthen sanctions to handle violations of information storage and supply according to regulations on state management of e-commerce for subjects of e-commerce activities.

- Building and putting into operation a shared database on e-commerce to serve tax, customs, and other state management tasks at the request of the Government.

The deadline for completion is 2025 at the latest.

- Coordinating with the Ministry of Finance to develop a detailed plan on data connection and sharing to strengthen tax administration for domestic forms of e-commerce activities; developing current standards and standards for connection and data sharing.

The deadline for completion is the third quarter of 2023.

- Coordinating and exchanging information with the Ministry of Finance to serve the inspection and examination; cooperating to handle violations of e-commerce activities in accordance with the law for enterprises, business households, and individuals engaged in e-commerce activities that fail to declare and pay taxes.

The deadline for completion is 2023 at the latest.

- Presiding over the implementation of the integration of electronic identification accounts, the application of chip-based citizen ID cards or residential data to authenticate the subject of e-commerce activities participating in the conclusion of contracts on the Vietnam Electronic Contract Development Axis; administration, operation, and stability assurance of Vietnam's e-contract development axis.

The deadline for completion is 2023 at the latest.

- There are solutions to encourage organizations and enterprises providing e-commerce services to apply electronic identification accounts, chip-based citizen identification cards, or residential data to authenticate the information of organizations and individuals doing business on e-commerce trading floors.

The deadline for completion is 2023 at the latest.

See more content at Directive 18/CT-TTg dated May 30, 2023.

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