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Vietnam defers e-commerce tax by five months

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Vietnam is ready to delay a web-based tax on e-commerce distributors by 5 months to assist financial restoration amid extreme Covid-19 impacts.

The Ministry of Finance has proposed to the federal government that the implementation of Round 40 be postponed till January 1, 2022, Minister Ho Duc Phoc mentioned Sunday. The round was to take impact on August 1.

The delay has been proposed as a part of several options to assist the restoration of companies because the fourth Covid-19 wave spreads in Vietnam, infecting over 105,000 folks, most of them in HCMC sometimes called the nation’s locomotive.

The round imposes a 1.5 percent tax on e-commerce vendors with annual revenues of VND100 million ($4,354) or larger.

E-commerce platforms are liable for accumulating this tax from distributors and paying it to the finance ministry.

A median of three.5 million transactions are made on e-commerce platforms every day in Vietnam, and the transaction worth has been growing steadily, in keeping with official information.

Nevertheless, e-commerce platforms have proposed that they aren’t made liable for paying tax on vendors’ behalf as it is going to create extreme prices and personnel burdens.

Vietnam’s e-commerce market expanded by 18 percent final yr to $11.8 billion, the one one in Southeast Asia to report double-digit development amid the pandemic, in keeping with the Vietnam e-Commerce and Digital Financial system Company.

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Rachel Ha
Industrial and agricultural product enthusiast. Expert on Vietnam economy. Focus on FTA agreements between Vietnam and other countries.
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