Deputy Minister of Industry and Trade Nguyen Hoang Long made this statement during the regular Government press conference held in October yesterday.
He provided an update on the outcomes of the legal assessment concerning unlicensed cross-border e-commerce platforms operating in Vietnam, including Temu and Shein.
The Ministry of Industry and Trade has taken steps to ensure Temu's adherence to Vietnamese regulations. The Ministry has directed responsible agencies to reach out to Temu's legal representative and urge the platform to complete its registration process by November. Regarding Shein, the Ministry of Industry and Trade has requested compliance with legal regulations and requires them to complete registration by November.
If Temu and Shein fail to comply after warnings and reminders, the Ministry will collaborate with competent authorities to implement technical measures, including blocking application downloads, blocking domain names, or temporarily suspending customs clearance of goods.
The Ministry of Industry and Trade has reported to the Prime Minister, recommending measures to review relevant legal regulations and study ways to strengthen the legal framework in the coming time.
Deputy General Director Mai Son clarified that e-commerce platform activities in Vietnam constitute business activities that necessitate licensing and fall under the regulatory purview of the Ministry of Industry and Trade. Platforms like Temu, Shein, and Amazon are required to fulfill their tax obligations by registering, independently calculating their tax liabilities, filing tax returns, and remitting taxes directly through the General Department of Taxation's Electronic Information Portal.
As of now, a total of 116 foreign suppliers have registered to declare and remit taxes via the electronic information portal designated for foreign suppliers. These suppliers have collectively generated a revenue of VND20,174 billion, with VND8,600 billion of that amount accrued in 2024 alone, reflecting a 25.7 percent increase compared to the average revenue over the first ten months of 2023.
In relation to Temu, on September 4, 2024, Elementary Innovation Company, the proprietor of the Temu e-commerce platform in Vietnam, completed the registration process for tax obligations through the Electronic Information Portal for Foreign Suppliers managed by the General Department of Taxation and was subsequently issued a tax code.
On October 30, 2024, Elementary Innovation Company submitted its third-quarter tax return, declaring nil revenue. The company provided an explanation that the revenue generated during the month of October will be fully accounted for in the upcoming fourth-quarter tax return.
The Ministry of Finance has authorized the General Department of Taxation to closely monitor Temu's revenue declaration in the fourth quarter. The Ministry also set for the deadline for submission pursuant to tax management law by January 30, 2025, to ensure state budget collection and complete collection as required by law.
The General Department of Taxation was tasked to establish strong coordination with the Ministry of Industry and Trade and other state agencies involved in the regulation of cross-border e-commerce platforms. This collaborative effort is intended to ensure the prompt and thorough implementation of tax management strategies for these platforms.
To enhance the regulatory framework for sellers, business households, and individuals engaged in e-commerce, the Ministry of Finance has proposed to the Government the need to amend and supplement the Law on Tax Management for consideration by the National Assembly.
This proposal specifically includes provisions that assign responsibilities to organizations managing e-commerce platforms, both domestic and international, that offer payment functionalities. These organizations will be required to withhold and remit taxes on behalf of business households and individuals operating on their platforms, as well as to declare tax obligations on their behalf.
Once this law is enacted, the Ministry of Finance will then advise the Government to issue a decree specifying detailed regulations.
Furthermore, the Ministry will facilitate collaboration and support between the tax authority and the organizations overseeing e-commerce and digital platforms, ensuring a cohesive approach that maximizes convenience for both e-commerce platforms and the individuals and business households utilizing them.
