On 30 / 06 / 2017, Ho Chi Minh City Tax Department issued a notice about the fulfillment of the obligation to declare and pay taxes on business activities in the form of e-commerce, the notice has the following contents:
NOTIFICATION
OBLIGATIONS FOR REGISTRATION, DECLARATION AND PAYMENT OF TAXES FOR BUSINESS ACTIVITIES UNDER THE FORM OF E-COMMERCE
Pursuant to tax laws, fees and charges law;
Pursuant to the Law on Tax Administration;
The Tax Department of Ho Chi Minh City announces the duty of tax registration and tax declaration in business activities in the form of e-commerce as follows:
I. For individuals trading goods and services in the form of e-commerce (selling goods and services via internet, social networks, and other forms of e-commerce)
a- Subjects of tax registration, declaration and payment: The business person whose revenue from selling goods and services from all forms of business (including online business) is over VND 100 million / year. obligations to register, declare and pay taxes.
b- Taxes and fees payable include: license fees, value added tax, personal income tax (and special consumption tax, environmental protection tax, ... (if any)
License fee level:
+ Turnover of over VND 200 million / year: VND 200 / year;
+ Turnover of over VND 800,000 to VND 200 million / year: VND 200 x VND / year;
+ Turnover of over VND 800,000 to VND 200 million / year: VND 200 x VND / year.
Individuals who are newly established or business, are granted tax registration and tax codes for the period of 6 in the first month of the year shall pay the license fee for the whole year; If established, granted tax registration and tax code, business code within the period of the end of the year, the enterprise shall pay 6% of the license fee for the whole year.
Value-added tax and personal income tax
* The payable VAT amount is equal to (=) The selling price of goods and services multiplied (X) the percentage of VAT;
* PIT payable by (=) Selling price of goods and services multiplied (X)% of personal income tax;
The percentage of VAT and PIT calculated on turnover shall be determined according to the provisions of Appendix 01 issued together with the Circular No. XNXX / 92 / TT-BTC, specifically some types of goods and services:
+ Distribution and supply of goods: VAT rate is 1%; PIT rate is 0,5%.
+ Services: VAT rate is 5%; PIT rate is 2%.
+ Transportation and services associated with goods: VAT rate is 3%; PIT rate is 1,5%.
+ Other business activities: VAT rate is 2%; PIT rate is 1%.
c- Procedures for registration and declaration of tax payment:
- Place of registration, tax declaration and payment: at the Tax Department where the individual resides or temporarily resides
- Tax registration dossiers are made under the guidance in Clause 7, Article 7 of Circular 95/2016 / TT-BTC dated June 28, 6 of the Ministry of Finance, specifically:
+ Tax registration declaration form No. 03-DK-TCT and lists (if any);
+ Copy does not require authentication of Business Registration Certificate;
+ A copy does not require the validity of a valid citizen ID card or valid ID card (for individuals with Vietnamese nationality); A copy does not require a valid passport (for individuals with foreign nationality and Vietnamese living abroad).
- Tax declaration documents:
+ License fee declaration
+ Tax return form 01 / CNKD (form issued together with Circular 92 / 2015 / TTBTC dated 15 / 6 / 2015 of the Ministry of Finance)
Tax registration dossiers and tax declaration dossiers shall be submitted directly at the Tax Office or by post.
II- For foreign organizations and individuals (hereinafter referred to as foreign contractors - foreign contractors) doing e-commerce business in Vietnam or earning income in Vietnam from e-commerce business:
1 / Obligation to deduct and declare tax:
Organizations established and operating under the laws of Vietnam, organizations operating under the laws of Vietnam, other organizations and individuals producing and trading in Vietnam when purchasing goods and services, have obligations withholding tax when making payments to foreign contractors and declaring and paying taxes into the state budget according to regulations.
For other cases, foreign contractors are responsible for declaring and paying taxes; Foreign contractors can through their authorized representatives in Vietnam or through tax agents to register for tax declaration and payment according to regulations.
2 / Determine the payable tax amount:
The payable tax amount is determined in accordance with the Circular No. XNXX / 103 / TT-BTC dated 2014 / 06 / 8 (applicable to organizations) and Circular No. XNXX / 2014 / TT-BTC dated 111 / 2013 / 15 (applicable to individuals), specifically:
* The payable VAT amount is equal to (=) The revenue from the provision of personal services (X) the percentage of VAT (5%)
* The payable CIT amount (for foreign organizations) is equal to (=) [Selling prices of goods and services minus (-) payable VAT] multiplied by (X) the percentage of corporate income tax;
The table of percentage of CIT calculated on taxable turnover is determined according to the provisions of Item 2 article 13 Circular No. 103 / 2014 / TT-BTC, specifically:
+ Goods supply activities: 1%;
+ Service provision activities: 5%
* The payable PIT amount is equal to (=) Turnover of goods or service provision multiplied (X)% of PIT
The percentage of personal income tax calculated on taxable turnover is determined according to the provisions of Clause 2 17 Circular No. 111 / 2013 / TT-BTC dated 15 / 08 / 2013 of the Ministry of Finance guiding the personal income tax, can:
+ Goods supply activities: 1%;
+ Service provision activities: 5%;
+ Production, construction, transport and other business activities: 2%.
III- Obligations of business establishments to stay in the tax declaration and payment on behalf of foreign-based companies (foreign contractors - foreign contractors) operating in the field of booking in Vietnam in the form of online
Pursuant to the Circular 103 / 2014 / TT-BTC dated 06 / 8 / 2014 of the Ministry of Finance;
Foreign contractors operating in the field of booking in Vietnam by online form are obliged to pay taxes in Vietnam; resident business establishments shall declare and pay taxes on behalf of foreign contractors according to regulations, specifically as follows:
- In case a customer rents a room to pay directly to an accommodation establishment in Vietnam and then pays a booking brokerage commission to a foreign contractor, the accommodation establishment shall declare and pay tax instead. NTNN.
- In case a customer who rents a room pays directly to the foreign contractor, then the foreign contractor transfers the room fee to the accommodation establishment and retains the commissions earned:
+ In case the accommodation establishment and foreign contractor has signed a contract, the hosting establishment shall notify the foreign contractor of the tax obligations and declare and pay taxes on behalf of the foreign contractor.
+ If the accommodation and foreign contractor has not signed the contract, the accommodation establishment must determine the tax liability of the foreign contractor when signing the contract and the accommodation establishment is responsible for declaring and paying the contractor tax instead of foreign contractors. .
