Do I have to pay tax when selling online?

HOANG ANH(Hai Duong City)

Reply:

Article 1: Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance guides the implementation of VAT and personal income tax for resident individuals with business activities as follows:

“Article 1. Taxpayers

1. Taxpayers according to the guidance in Chapter I of this Circular are resident individuals including individuals, groups of individuals and households engaged in production and business of goods and services in all fields and industries of production and business as prescribed by law (hereinafter referred to as business individuals).

…. 2. Taxpayers mentioned in Clause 1 of this Article do not include business individuals with revenue of VND 100 million/year or less.”

Article 2 of Circular 302/2016/TT-BTC dated November 15, 2016 of the Ministry of Finance provides guidance on business license fees as follows:

“Article 2. Persons paying business license fees

The payers of business license fees are organizations and individuals engaged in production and business of goods and services as prescribed in Article 2 of Decree No. 139/2016/ND-CP dated October 4, 2016 of the Government regulating business license fees, except for the cases prescribed in Article 3 of Decree No. 139/2016/ND-CP dated October 4, 2016 of the Government regulating business license fees and instructions in Article 3 of this Circular".

Based on the above regulations and Mr. Hoang Anh's question, online sales, pharmaceutical trading and health and happiness businesses are obliged to pay VAT, personal income tax and business license fees if their online sales revenue is over 100 million VND/year.