Traders Using Social Networks in Vietnam Expected to Pay Tax
Published By : 17 Dec 2014 | Published By : QYRESEARCH
Retailers dealing online in Vietnam are expected to pay sales tax from next year, Ho Chi Minh City.
Websites will be required to register with the government in order to sell goods and also pay tax on various goods they handle, announced The Ministry of Industry and Trade on Thursday.
These regulations aim to earn the same amount of revenue from the online sales as they do from stores. In a market used by 36 million consumers, one third of Vietnam’s online population could be discouraged due to this movement surging at a rapid growth.
The new regulation was laid down on Dec. 5 ‘Black Friday’ attracting more than 900 domestic online retailers. Traders utilizing online websites as a form of e-commerce must register and pay business taxes, said deputy head of the e-commerce department in a local newspaper. Social networking websites can open sub-websites or booths to display their post advertisements for their goods and services, she added.
Summoning of this regulation has been the aim of the government since trading via social networking websites began thriving into the global market. However, the problem with Vietnamese is they would not fill up their personal data while signing up for accounts.
In the coming year, the government aims to request the local partners and agents of social networking platforms such as Twitter, Facebook, Myspace, Google Plus, and LinkedIn to pay taxes.
Some of the popular items traded on Facebook are cosmetics, real estate, medicine, food, cars, shoes, and local specialties. According to Epinion Research around 25 million Facebook users’ inclusive students and housewives use Facebook accounts to sell items for extra money.
Google representatives for Vietnam refused to comment, while Facebook authorities could not be reached.
Most of the transactions in Vietnam are managed unofficially and using cash. The government is not clear whether they will be able to handle tax revenue and online retailers.