Abstract: The new law was approved last year by the National Assembly winning the 91% approval. For digital commerce, other services provided by foreign operators without a stable organization in the country are subject to the obligation to deposit in Vietnam, directly or by proxy, the fiscal registration, the tax return and the payment. Analysis by D'Andrea & Partners
MILAN, Aug 12 (Class Editori) - For the first time in Vietnam, the tax law has introduced regulations for the tax administration of e-commerce activities. The reform, approved last June by the National Assembly with a majority of over 91%, states that “for e-commerce activities, digital-based activities and other services provided by foreign operators without a permanent establishment in Vietnam, there is the obligation to file in Vietnam, directly or by proxy, the fiscal registration, the tax return and the payment of the same, pursuant to the rules of the Minister of Finance.” However, as an analysis of the reform carried out by the D'Andrea & Partners studio underlines, at the moment these laws are used only as principles and serve as a guideline for the Ministries and the competent agencies in view of the forthcoming issuing of detailed guidelines on e-commerce related commercial activities.
On the basis of the reform, the tax payers have the right to request the tax authorities to set the deadline for the settlement of tax refunds, non-refundable tax amounts and to communicate the legal reasons justifying their non-refundability. Another innovation concerns the application of modern technologies for tax administration. Most of the activities and relations with the tax authorities will have to take place via the Authority's online portal. An electronic platform will be available, accessible by taxpayers, to view and print all electronic documents sent via the online portal.
The law, underlines again D'Andrea & Partner, “also perfects the duties of the ministries and central agencies regarding the tax administration, the decentralization and the extension of the competences for the decisions on the remission of the fiscal debt.”
Finally, the reform, which will come into force next July except for some regulations starting in 2022, explicitly details the regulations on conduct that are prohibited in tax management. This includes the collusion and the competition between taxpayers and tax administration officials for the purpose of committing tax fraud, intentionally causing difficulties for tax payers; use of tax money without authorization; the tax declaration intentionally omitted and impeding the exercise of the functions of tax officials; the use of the tax code of another person or allow others to use their tax code illegally; failure to issue invoices for the supply of goods and services or issue and use of illegal invoices.
(Source:Class Editori)
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