E-commerce business management: Difficult problem still has a solution

In recent years, e-commerce business activities have grown and gradually had advantages, bringing significant profits to many businesses, especially since the COVID-19 epidemic appeared. However, the authorities' management of this type of business has many things that could be improved, including tax management.

From June to early September 2023, Thai Nguyen City Tax Department reviewed and counted 6,546 stores on Shopee with addresses in the province

This type of business brings benefits, but the management of the e-commerce business of tax agencies is facing many difficulties. The reason is that most organizations and individuals try to avoid fulfilling their obligations to the State budget. Therefore, the number of households and individuals operating e-commerce businesses and providing e-commerce services that are put under management is very small.

Faced with this reality, for the management of business households and individuals to be in order, contributing to increasing revenue for the state budget while creating equality in production and business of organizations and individuals. The Director of the Provincial Tax Department assigned the unit's Youth Union to research and propose solutions to put tax management for e-commerce business activities in order.

From June to early September 2023, Thai Nguyen City Tax Department reviewed and counted 6,546 stores on Shopee with addresses in the province. In which, more than 900 booths with addresses in Thai Nguyen city (863 booths with specific addresses; 190 booths with revenue of over 100 million VND/year, which are subjects must pay tax).

These booths are all managed by Thai Nguyen City Tax Department. For booths subject to tax payment, the tax agency has determined that the total declared revenue is 421 billion VND, and the amount of tax generated through declaration is 7.8 billion VND.

E-commerce business development generates thousands of jobs.

Mr. Pham Phan Quyen, group 1, Tuc Duyen ward (Thai Nguyen city), specializing in selling aromatic essential oils and scented candles, shared: "I started doing business on Shopee in 2021. Because I haven't yet grasped tax policies, the e-commerce platform would cut 15% of total revenue, including annual fees, floor fees, shipping fees... and tax payments. Currently, when Thai Nguyen City Tax Department officials explained, I have complied with tax payment and from now on, I will fully comply with the regulations with the State budget".

The Tax agency also coordinates with commercial banks and shipping units to determine the revenue and business addresses of organizations and individuals doing e-commerce business. In cases of non-cooperation, the tax agency will coordinate with the city's Steering Committee 389 and the police forces, market management, the people's committees of communes and wards... to inspect and supervise.

It will improve discipline in fulfilling tax obligations to the State, creating a fair, competitive environment for business organizations and individuals. It is also the basis for Thai Nguyen City Tax Department has long-term management measures for households and is valuable experience for tax departments in the area to learn and apply.