Regarding the identification of digital platforms responsible for value-added tax (VAT) collection, along with the roles of sellers and buyers, this article discusses the guidance of the Organization for Economic Cooperation and Development (OECD) on determining the taxing point and proposes tax solutions for low-value imports while providing observations to improve Vietnam’s tax policy. The taxing point In its report on the role of technical platforms in collecting consumption tax (value-added tax or goods and services tax) from online transactions, the OECD emphasized the importance of defining the taxing point. This definition is crucial for creating an effective and practical VAT collection mechanism through digital platforms while minimizing administrative costs and compliance burdens. The taxing point determines the reporting period for tax declarations and the applicable tax rate, including scenarios involving temporary tax reductions or exemptions. However, differences in how the taxing point is determined can make compliance tough for digital platforms. As intermediaries, platforms often lack sufficient information—such as the time of delivery or payment—to identify the taxing point accurately. To address this, the OECD suggests defining the taxing point as the moment the seller or their representative receives confirmation of payment authorization. This confirmation occurs before the actual […]
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