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E-commerce firms frown on Vietnam’s taxation plans

The Vietnam E-Commerce Association has disapproved of the suggestion of the government that e-commerce platforms pay tax on behalf of sellers. The association said three obstacles in the way of e-commerce platforms that make it impossible to pay tax in sellers’ stead. Among others, the association said e-commerce platforms have little knowledge of all the tax codes and tax rates applicable to sellers’ items. They also cited the absence of a digital system that enables e-commerce platforms to declare and pay tax on sellers’ behalf. The third obstacle centres on the payment method that is preferred by buyers in Vietnam - cash on delivery. Vietnam’s Ministry of Finance has called for e-commerce platforms to pay tax on behalf of sellers, but online traders insist the suggestion is impractical.


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