Against the backdrop of the rapid rise of e-commerce and livestreaming sales, the General Department of Taxation of Vietnam has asked local tax authorities to conduct strict scrutiny of retailers that conduct livestreaming sales through platforms such as YouTube, Facebook and TikTok, and to establish a risk list for targeted inspections. This action is not only aimed at regulating market order, but also provides clear guidance for enterprises to operate in compliance with regulations in the context of globalization.
The State Administration of Taxation stressed the need to strengthen tax management of individuals and organizations with high income from livestreaming sales, and to conduct closer monitoring of e-commerce platforms to effectively prevent tax leakage. Data from market research firm NielsenIQ shows that 95% of online shoppers make purchases through livestreaming platforms, a trend that shows the huge influence of livestreaming sales on consumer behavior.
According to statistics from the Vietnam E-Commerce Association, there are approximately 2.5 million live broadcast events per month and more than 50,000 sellers active on these platforms. The huge market size has brought huge business opportunities, but it has also attracted great attention from tax authorities and increased supervision.
Expert interpretation: Tax compliance challenges of live e-commerce and corporate response strategies in the context of globalization
1. The rapid development of live e-commerce and the necessity of tax supervision
With the advancement of technology and changes in consumer behavior, live e-commerce has become an important part of the global retail industry. This emerging sales model has not only changed the traditional way of shopping, but also raised challenges in tax supervision. The immediacy and wide user coverage of live sales enable companies to quickly attract a large number of consumers, but at the same time, it also brings new complexities to tax supervision.
The traditional tax supervision model mainly targets the transactions of goods and services in the real economy, while the digital characteristics of live e-commerce make transactions more decentralized and hidden, which brings difficulties to the supervision of tax authorities. The State Administration of Taxation’s request to strengthen the review of live e-commerce is precisely to deal with the problem of tax loss under this new situation. Through data docking and risk analysis with live broadcast platforms, tax authorities can more effectively locate potential tax violations, thereby ensuring the fairness of taxation and the healthy development of the market.
2. The strategic significance of tax compliance to enterprises in the context of globalization
In the context of globalization, companies not only need to pay attention to domestic tax laws and regulations, but also have to deal with tax compliance challenges in cross-border operations. Tax policies vary greatly between countries and regions, especially in the digital economy. Many countries are strengthening tax supervision on cross-border e-commerce and live streaming sales. For companies that want to expand into the international market through live streaming e-commerce, it is crucial to understand and comply with these tax laws and regulations.
Tax compliance directly affects the legitimacy and competitiveness of enterprises in the international market. Enterprises that fail to comply with tax laws and regulations not only face the risk of fines and legal proceedings, but may also lose market access, seriously affecting their reputation and development prospects in the international market. Especially in an industry such as live e-commerce that relies heavily on consumer trust, tax violations may cause the credibility of enterprises to be damaged, thereby affecting their market share and brand image.
3. Corporate response strategies: forward-looking tax planning and multi-market compliance management
In order to gain a foothold in the global market and achieve long-term development, enterprises need to adopt forward-looking tax planning and compliance management strategies. First, before entering a new market, enterprises should conduct a comprehensive assessment of the tax environment of the target market and clarify the local tax laws and compliance requirements. After understanding this information, enterprises can formulate corresponding tax strategies to ensure their legal operations in the new market.
Secondly, enterprises should establish a complete tax compliance management system, covering all aspects from sales records to tax declarations. Especially in a business model such as live e-commerce, where transactions are frequent and the amount is huge, accurate financial records and timely tax declarations are the basis for corporate compliance operations. Enterprises can ensure the effectiveness of their tax compliance management through internal audits and third-party consulting services.
In addition, as countries’ tax supervision on cross-border e-commerce becomes increasingly strict, companies also need to pay close attention to changes in international tax policies. As a professional global service organization, Wanqibang can provide companies with the latest tax policy interpretations and compliance advice to help them navigate the complex international market.
4. Tax environment and business development opportunities in Vietnam
As a fast-growing market in Southeast Asia, Vietnam has attracted a lot of attention from international companies. However, Vietnam’s tax compliance requirements for live e-commerce are becoming increasingly stringent. According to current Vietnamese regulations, online sellers with annual revenues of 100 million Vietnamese dong or more must pay value-added tax (VAT) and personal income tax. This regulation puts forward clear tax requirements for companies entering the Vietnamese market.
The rapid development of the Vietnamese market has brought huge opportunities to enterprises, but it also means higher compliance requirements. When entering the Vietnamese market, enterprises must ensure that their tax strategies are consistent with local regulations to avoid potential legal risks. By cooperating with Vanzbon, enterprises can obtain compliance support in the Vietnamese market, ensuring that they will not be hindered by tax issues while rapidly expanding their business.
Summary: The synergy between tax compliance and corporate globalization
In the process of globalization, tax compliance is not only a prerequisite for companies to enter new markets, but also the cornerstone of their long-term development. As countries increase their supervision of the digital economy and cross-border e-commerce, companies must establish a sound tax compliance system globally to cope with legal challenges in different markets.
Vanzbon’s perspective: Helping companies comply with regulations and develop in the global market
As a full-service provider of globalization services for enterprises, Vanzbon is well aware of the importance of tax compliance in the international market. Whether in Vietnam or other countries, we are committed to providing enterprises with services including tax planning, compliance consulting, market research, etc., to help enterprises operate legally and compliantly around the world, and ensure that they can effectively avoid legal and tax risks while expanding their business.
For companies that intend to enter the international market through e-commerce and live streaming platforms, tax compliance is a link that cannot be ignored. According to current Vietnamese regulations, online sellers with annual revenues of 100 million VND or more must pay value-added tax (VAT) and personal income tax. This regulation sets clear tax requirements for companies involved in cross-border e-commerce and live streaming sales. Vanzbon recommends that companies should do a good job of tax planning and compliance management in advance when entering the international market to avoid potential legal risks due to unfamiliarity with local regulations.
Vanzbon helps companies develop in compliance with regulations in the global market by providing professional global corporate registration, tax compliance, cross-border independent website building and other services. Especially in the field of e-commerce and live streaming sales, we can provide companies with all-round support from platform selection, tax planning to compliance management, helping companies to smoothly achieve internationalization.
Summary of views: The synergy between tax compliance and corporate globalization
Tax compliance plays an increasingly important role in the process of globalization, especially in the context of the rapid development of e-commerce and live-streaming sales. International companies must not only have keen market insight, but also strict compliance management capabilities to cope with legal and tax challenges in different markets. The Vietnam General Department of Taxation’s strengthening of its review of live-streaming sales is a reflection of this trend.
For small and medium-sized enterprises, while seizing the opportunities of globalization, they also need to ensure that every step is carried out in compliance with regulations. Vanzbon is committed to providing enterprises with the most professional globalization services, helping them to expand their business legally and compliantly in the international market, reduce operating risks, and achieve steady development.
Business has no borders, and we help companies all over the world. In the wave of globalization, we will continue to help companies operate in compliance and provide all-round support for their success in the international market.
