Temu, Shein must complete business registration by month-end
Temu, Shein must complete business registration by month-end
The Ministry of Industry and Trade (MoIT) has engaged with representatives from cross-border e-commerce platforms Temu and Shein, mandating them to complete business registration procedures within this month.
At the Government’s press conference on November 9. — VNA/VNS Photo |
The information was disclosed by Deputy Minister of the Industry and Trade, Nguyễn Hoàng Long, during a Government’s press conference on November 9.
The ministry has directed Temu and Shein to formally notify Vietnamese consumers through their applications about their ongoing registration activities.
As part of the registration process for operating in Việt Nam, the platforms are required to halt advertising and marketing activities to safeguard consumer rights.
The MoIT has informed companies to comply with Vietnamese laws following a series of warnings. Non-compliance may lead to coordinated technical measures, such as app blocking and domain name restrictions, in collaboration with relevant authorities, Long said.
To reinforce regulatory efforts, the MoIT is working with the Ministry of Public Security to intensify inspections, communications and consumer guidance regarding the risks of transacting on unlicensed cross-border e-commerce platforms.
The ministry has reported to the Prime Minister Phạm Minh Chính to work alongside the Ministry of Justice in refining the legal framework for cross-border e-commerce activities.
At the press conference, Mai Sơn, Deputy Director General of the General Department of Taxation, highlighted the obligations of foreign suppliers in Việt Nam.
As of October 2024, 116 foreign suppliers have registered for tax declaration via the General Department of Taxation's electronic portal, amounting to over VNĐ20.17 trillion (US$798.2 million). Notably, tax revenues via the portal reached VNĐ8.6 trillion from the beginning of the year, up 25.7 per cent year-on-year.
On September 4, Temu's Việt Nam-based company successfully registered for taxes via the General Department of Taxation's electronic portal for foreign suppliers and obtained a tax code (MST) of 9000001289. The company has submitted its third quarter’s tax declaration, reporting zero revenue with accompanying explanations. Revenue generated in October will be declared in the fourth quarter’s tax statement.
The Ministry of Finance (MoF) has instructed the General Department of Taxation to expedite Temu's Q4/2024 revenue declaration and submission by January 30, 2025, in accordance with legal requirements.
Collaborative efforts between the General Department of Taxation and relevant authorities, such as the MoIT, are crucial in ensuring timely and comprehensive tax management in licencing operations for cross-border e-commerce platforms.
The MoF also proposed amending the Tax Management Law to include provisions holding e-commerce platforms responsible for tax deduction and payment on behalf of individual businesses on the platform.
Recently, cross-border e-commerce platforms like Temu, Shein and 1688 have conducted business operations in Việt Nam without registering with the MoIT.
