Vietnam's tax authorities will give five more months for e-commerce platforms to set up data connectivity and begin sharing online sellers' information from January 2022.
|Tax authorities gave another five months for e-commerce platforms to prepare for sharing information of their vendors |
In the dispatch to collect feedback on the enforcement roadmap, the General Department of Taxation (GDT) has adjusted the schedule to being e-commerce taxation from August 1, 2021 to January 1, 2022 to give e-commerce platforms more time to prepare.
According to Circular No.40/2021/TT-BTC guiding value-added tax (VAT), personal income tax (PIT), and tax management for business households and individuals, e-commerce operators will have to deduct tax payable before transferring revenue to households and individuals selling on their e-commerce platforms. Circular 40 was scheduled to come into force on August 1.
The delay will facilitate e-commerce platforms and taxpayers to comply with regulations. The GDT said that from January 1, 2022, e-commerce platforms must provide sellers' information to tax authorities by electronic means.
It is expected that the data will be transferred monthly with a summary table of each seller's operations on the platforms, covering basic information such as the online store and seller's name, tax code, identity card number, address, email, phone number, as well as revenue for the month. These data are already available at the e-commerce platforms, according to e-commerce management regulations.
From August this year to the end of 2021, the GDT will cooperate with the Ministry of Industry and Trade to conduct a survey with a number of e-commerce platforms to develop data standards. At the same time, the GDT will consult e-commerce operators to draft data standards and a roadmap for connecting the databases of tax authorities and e-commerce platforms.