In recent years, the reform of the tax system in our country has always been prioritized, ensuring uniformity and consistency in policy innovation and efficiency in tax management at all levels entrusted. With the digital era, buying and selling goods on e-commerce platforms has become very popular and particularly adaptable to young people and those who frequently shop. Therefore, the volume of goods traded on e-commerce platforms is very large.
1. Concept of Tax Management
According to Clause 1, Article 3 of the Tax Administration Law 2019, it stipulates that “Tax is a mandatory contribution to the state budget by organizations, households, business households, and individuals as prescribed by tax laws.” Management is a very important activity for an organization. In any organization, whether large or small, business, operating under any model, there must be management. Management aims to help activities occur with direction and purpose according to set requirements and achieve the final goal. Management activities include planning and strategy, mobilizing, using all the organization’s resources such as human resources, finance, technology… effectively. Accordingly, the concept of tax management is understood as follows: Tax management is the state management activity performed by the Tax Department in managing to ensure that activities occur according to the state’s direction in collecting taxes and mandatory contributions to the state budget by organizations, households, business households, and individuals. Tax management is a state activity, so the content is quite common and diverse, also depending much on different requirements of the state. Depending on different regulations around the world. In Vietnam, Article 4 of the Tax Administration Law 2019 stipulates specific important tax management content as follows:
- Tax registration, tax declaration, tax payment, tax determination.
- Tax refund, tax exemption, tax reduction, non-collection of tax.
- Handling of tax debts, tax exemption, late payment, late payment penalties.
- Management of taxpayer information.
- Management of invoices and documents.
- Tax inspection, tax audit, complaint resolution, denunciation resolution.
2. Concept of Tax Law Management for E-commerce Transactions
It is the management activity of the tax authority for organizations and individuals in buying, selling, trading, and exchanging goods on domestic and international e-commerce platforms. The implementation of tax policies must ensure the rights and obligations of taxpayers in e-commerce transactions. Tax management in a broad sense is understood as all state management activities directly related to taxes. It includes tax collection management, planning and developing the tax system, issuing tax laws as well as operational activities and inspections. Broadly speaking, tax management is a very large category and involves many state management agencies in performing the assigned tasks. In a narrow sense, it can be understood as administrative management in the tax field by the tax authority. In which the tax management agency includes activities such as managing, organizing, and operating the collection and payment of taxes to the state from individuals or organizations in society.
3. Characteristics of Tax Law Management for E-commerce Transactions
Tax management for e-commerce transactions is a primary content carried out by the state and has the following basic characteristics:
- Management according to legal regulations for e-commerce transactions: State management is associated with the legal norms stipulated in the current legal system. Therefore, its high legal nature creates a foundational condition in tax management. Management according to legal regulations ensures unity and high compliance among relevant entities.
- Tax collection management is implemented through administrative methods and the management impact of tax authorities. This method involves the establishment of relationships between tax authorities and individuals and organizations in society, and between various levels of management to ensure compliance with directives from higher levels down to lower levels. Taxpayers must comply with legal regulations on tax declaration and payment when transactions related to business activities arise, ensuring state budget revenues.
- Tax management in e-commerce transactions also has technical aspects and requires high expertise to determine the tax payable for each transaction. It involves collecting evidence related to transactions for accurate and efficient tax collection. In the current era of information technology, the management, especially of e-commerce transactions, requires updating and improving management practices to ensure uniformity from the top level to local levels.
4. Content of Tax Law Management for E-commerce Transactions
a. Regarding taxpayer information management According to Article 96 of the Tax Administration Law 2019, “Building, collecting, processing, and managing taxpayer information systems” as follows:
- Tax authorities are responsible for building and developing management based on the database of taxpayer information and the tax management system. They are responsible for collecting, summarizing, and analyzing tax system operations.
- Professional measures need to be implemented for effective management and applying international agreements to adjust foreign enterprises, aligning with international tax management practices.
- Tax authorities coordinate with individuals and organizations involved in managing information on the internet. The entities participating in e-commerce transactions are diverse, depending on the model and form of operation, and can be divided into main groups such as: goods and services buyers, sellers, and infrastructure and technical service providers for e-commerce.
b. Tax collection management when e-commerce transactions arise
Managing tax collection when transactions occur ensures that taxpayers fulfill their tax obligations and comply with the timeframes set by tax authorities. For tax calculation in case of transactions, it may be determined by tax authorities if taxpayers cannot correctly identify the tax amount payable or by taxpayers themselves based on the value arising from their business activities. Tax declaration and submission of related documents can be done directly at tax authorities or electronically. Cross-border transactions in the online environment lack customs control since sellers are overseas while buyers are domestic. If the law does not provide for tax withholding on service purchasers, it leads to significant tax revenue loss. Therefore, apart from applying practical regulations, it is necessary to improve regulations on business locations, especially for foreign businesses, to ensure clear tax collection for cross-border e-commerce transactions.
5. Current Legal Regulations on E-commerce Transactions
In recent times, regulations on e-commerce transactions have gradually become more comprehensive in applying to the legal framework, such as corporate income tax, value-added tax, and personal income tax.
However, in the current context, with the rapid development of technology and the orientation towards international integration, the regulations are somewhat lagging behind the continuous development and innovation. Therefore, circulars like No. 59/2015/TT-BCT from the Ministry of Industry and Trade, which regulates the management of e-commerce activities through applications on mobile devices, or Circular No. 47/2014/TT-BCT, which regulates the management of websites in e-commerce, and other decrees on handling violations during business transactions, should be supplemented with additional provisions to be applicable to the ever-changing commercial market.
Regarding management regulations, there has not been a clear distinction between social networks and e-commerce platforms. These two elements differ in terms of buying, selling, and transaction activities. The characteristics of these two commercial platforms are distinct and unique. E-commerce platforms have functions like ordering, electronic payment, providing various goods, and online ordering.
Meanwhile, social networks do not have all these functions. It can be seen that social networks act as intermediaries when customers request goods, and the order is only confirmed and processed when requested. In contrast, on e-commerce platforms, buyers only need to find the desired product, order it directly, and make the payment, with the e-commerce platform playing a crucial role in facilitating the transaction and providing the e-commerce service.
Therefore, the current regulations mainly apply to both types of businesses on e-commerce platforms under the same management. These two types of businesses are fundamentally different. For instance, Circular 47/2014/TT-BCT includes regulations on managing e-commerce websites. Article 6 specifically addresses criteria for functions on information technology platforms in e-commerce when determining operational factors for social networks to meet business requirements similar to an e-commerce platform.
When disputes arise related to e-commerce transactions, our country is in a period of strong development, particularly regarding the demand for fast, cashless payments. As a result, e-commerce transactions are increasing and developing rapidly in quantity. With the rising number of transactions daily, disputes related to online transactions are inevitable.
Currently, our legislative system does not have any legal documents applicable to resolving disputes in the online space, especially in the form of resolving disputes on e-commerce platforms. Meanwhile, the 2005 Electronic Transactions Law mentions online mediation and arbitration methods, but these methods in the law are general principles and are not practically applicable.
For electronic payment transactions without cash, Decree No. 101/2012/ND-CP has been applied widely, but many shortcomings are identified in protecting the rights of participants in commercial activities.
—————————-
📞 CONTACT LEGAL CONSULTANT:
TLA Law is a leading law firm with a team of highly experienced lawyers specializing in criminal, civil, corporate, marriage and family law, and more. We are committed to providing comprehensive legal support and answering all your legal questions. If you have any further questions, please do not hesitate to contact us.
1. Lawyer Vu Thi Phuong Thanh, Manager of TLA Law LLC, Ha Noi Bar Association
Email: vtpthanh@tlalaw.vn
2. Lawyer Tran My Le, Chairman of the Members’ Council, Ha Noi Bar Association
Email: tmle@tlalaw.vn.
_Nguyen Thu Phuong_