According to the agency, HCMC now has 8,000 e-commerce websites. Of these, 4,000 have operated stably with the noticeable activity being online sale of goods on Facebook. However authorized agencies have yet to closely work together in tax management and collection causing huge tax loss in this field.
Last year, the retail sale activity on the internet between businesses and individual customers was estimated to reach US$5 billion accounting for 3 percent of the country’s total retail sales and consumer service turnover.
According to the Tax Management Law, subjects doing business in Vietnam must do tax declarations before carrying out trading activities. Domestic trading organizations and individuals must do tax declaration by each contract and pay tax for foreign firms who sell goods to them or provide them services but have no permanent establishments in the country.
However, Vietnam has still seen tax loss in e-commerce. For the last many years, big brand names in the world such as Facebook, Instagram, Youtube, Google, Ebay and Alibaba and many domestic e-commerce websites such as VCCorp, Vatgia, Rongbay, Enbac, Muare, Muachung, 5giay and Zalo have freely traded in many fields but not ensured their tax obligations.