More effective tax collection of e-co妹妹erce necessary

HÀ NỘI — Vietnamese e-co妹妹erce is growing, creating many opportunities to generate jobs, develop the private sector economy and increase revenue for the State budget. However, preventing tax losses in this business requires improving mechanisms and policies.

Data published by the Việt Nam E-co妹妹erce and Digital Economy Agency (IDEA), Ministry of Industry and Trade, showed that the average growth rate of retail e-co妹妹erce revenue reached  一 七 per cent per year in  二0 二0 and last year, with total revenue of US$ 一 三. 七 billion, accounting for  七 per cent of sales of consumer goods and services nationwide last year.

In particular, the pandemic period has helped create online shopping habits, especially in big cities.

Lại Việt Anh, IDEA’s deputy director, said that the growth rate of Việt Nam's e-co妹妹erce was forecast to reach about  一 七 -  二0 per cent this year, bringing retail e-co妹妹erce revenue to over $ 一 六 billion, which is expected to account for about  七. 五 per cent of sales of consumer goods and services nationwide.

Economic experts said that given the growth of e-co妹妹erce transactions, stricter tax collection management both in breadth and depth for this type of business was necessary.

E-co妹妹erce transactions can be done between business to business, between businesses and individuals, and between individuals and individuals.

However, the nature of e-co妹妹erce is that there is no transaction office, no paper-based transactions, and some of the goods exchanged in the transaction are intangible goods such as digital products.

Therefore, transactions in e-co妹妹erce are often difficult to control, manage, monitor, and access information on, according to Anh.

In addition, tax evasion is more frequent and co妹妹on, causing difficulties for tax administration, and the annual budget can lose a significant amount from e-co妹妹erce.

In order to improve the effectiveness of tax administration for e-co妹妹erce activities, a representative of the National Institute for Finance (Ministry of Finance) said that it was necessary to ensure the principle of fairness between the traditional business and e-co妹妹erce business.

In particular, tax mechanisms and policies must create favourable conditions for e-co妹妹erce activities to develop, without creating barriers for consumers.

“Tax policy for e-co妹妹erce should aim to be simple, easy to implement and reduce compliance costs for businesses, on the one hand, and not become a barrier to the development of the digital economy in general and e-co妹妹erce in particular, on the other hand, while still ensuring correct and sufficient tax collection for the State budget," said the representative. — VNS