Sales on Facebook do not require registration, but must pay taxes

The Department of E-Commerce and Information Technology (Ministry of Industry and Trade) has just officially voiced public opinion after the Ministry of Industry and Trade issued Circular No. 47/2014 on managing e-commerce website, in there is business management through social networks.

Sales through social networks must also comply with the law on payment, advertising, promotion, protection of intellectual property rights and consumer rights protection.

According to the explanation of this agency, currently, the trend of e-commerce business on social networks is flourishing with a growing market size. Vietnam e-commerce report in 2013, shows that about 73% of internet users in Vietnam have access to forums, social networks. Survey results also show that 45% of internet users participate in shopping through social networks.

Grasping the above trend, more and more businesses choose to sell through social networks in order to reduce costs and improve the efficiency of reaching target customers.

In light of this fact, the Ministry of Industry and Trade issued Circular 47/2014, effective from January 20, 2015, guiding regulations on managing e-commerce websites, social networks with one of the pictures. mode of operation in the form of an e-commerce trading floor such as a website that allows participants to open stores on it to display and introduce goods or services; are allowed to set up a branch website to display and introduce goods or services; The website has a buying and selling section, which allows participants to post information on buying and selling goods and services, and must register with the Ministry of Industry and Trade.

Subjects of application of Decree 52/2013 of the Government and Circular 47 of the Ministry are all traders, organizations and individuals participating in e-commerce activities in the territory of Vietnam, including individual countries. in addition to residing in Vietnam and foreign organizations with a presence in Vietnam through investment activities, establishing branches, representative offices or setting up websites under Vietnamese domain names.

E-Commerce Department explains, in terms of nature and method of organization, business activities on social networks are similar to business activities on e-commerce trading floor.

Therefore, Circular No. 47 clarifies the provisions of Decree No. 52/2013 on e-commerce, requiring social networks operating in the form of e-commerce trading floor to register with Ministry of Industry and Trade and comply with regulations relating to e-commerce trading floor.

This regulation aims to establish a healthy competitive environment for e-commerce development, while improving the efficiency of state management in this area.

In the face of controversial information about people selling on social networks like Facebook . whether to register with the authorities, E-Commerce Department affirmed: " According to Circular 47, sellers on social networks not registered with the Ministry of Industry and Trade ".

However, salespeople on social networks must be responsible for the seller on the e-commerce trading floor such as: providing complete and accurate information such as the seller's name, address, phone number, code personal tax amounts . for e-commerce transaction floor owners when registering services; provide full information about goods and services as prescribed when selling goods .

In addition, it must comply with the law on payment, advertising, promotion, protection of intellectual property rights, consumer protection and other relevant laws when selling goods or providing services on the trading floor.

In particular, although Circular No. 47 does not provide for the tax payment of sellers on social networks, on the principle of the Tax Administration Law, individuals and organizations conducting business activities in any form must do so. present tax obligations to the state.

Moreover, according to Decree 52/2013, " sellers on e-commerce trading floors must fulfill tax obligations in accordance with the law ".

According to the E-Commerce and Information Technology Department, that means that, if the social network operates in the form of an e-commerce trading floor, the seller on it must also comply with the tax obligation. law. Tax declaration, tax collection methods, tax rates, taxes, etc. are applied according to the current tax laws and tax administration.

According to the agency, Circular 47 takes effect from January 20, 2015.