Tax Declaration Decisions On Social Networks Of Online Retailers: A Case Study In Vietnam

Abstract

In recent years, e-commerce and online retail in Vietnam have experienced significant development. This reality has presented significant challenges for the government's tax management authorities in preventing tax evasion. Inspecting unreported or underreported revenue in online transactions on servers or the internet can be particularly challenging, especially for retail and service operations of online retailers on social networks. In Vietnam, the Tax Management Law of 2019 specifies the tax obligations for online retailers. However, tax collection for retailers on social networks still depends on tax authorities encouraging them to voluntarily declare revenue. Current research and practice indicate that very few social media retailers participate in voluntary revenue declaration for tax purposes. Furthermore, few studies focus on the factors influencing the participation of online retailers in Vietnam in revenue declaration and tax payment, especially for businesses selling on social media, lacking a solid theoretical foundation. This study identified factors influencing the tax declaration decisions of social media retailers in Vietnam. With 563 survey samples of social media retailers in Vietnam, Smart PLS analysis results revealed two variables directly impacting tax declaration decisions including: tax declaration intention and the attitude of social media retailers. Additionally, the study results showed indirect relationships of multiple variables in the model through tax declaration intention on tax declaration decisions. The study also provides recommendations to promote and enhance voluntary revenue declaration and tax payment decisions of social media retailers in Vietnam.