Frequently Asked Questions About Tax Obligations on Shopee - Part 1

3 July, 2024 by
Frequently Asked Questions About Tax Obligations on Shopee - Part 1
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Shopee is a rapidly growing e-commerce platform, attracting a large number of sellers to join. Along with that, tax obligations on Shopee are also a topic of interest for many. This article will answer common questions to help you understand tax obligations when selling on Shopee.

1. Does Shopee collect taxes from sellers?

Shopee is not a tax authority and does not directly collect taxes from sellers. The tax obligations of sellers are determined based on the prevailing tax laws.

2. Do sellers on Shopee need to pay taxes?

According to the law, individuals, businesses selling goods, services must fulfill tax obligations to the State. Therefore, sellers on Shopee, regardless of the scale, have the obligation to declare and pay taxes as required.

3. Does Shopee provide invoices to sellers?

Shopee provides electronic invoices to sellers who require them. Sellers can register to use Shopee's electronic invoice service or choose another suitable electronic invoice provider.

4. Does Shopee support sellers in tax declaration and payment?

Shopee does not provide guidance on tax procedures to sellers. However, Shopee commits to support and coordinate with sellers and tax authorities upon request.

5. Does deleting a shop account help avoid tax obligations?

Deleting a shop account does not mean avoiding tax obligations. Tax authorities may recover taxes if sellers are found to engage in fraudulent activities or tax evasion.

6. What should sellers do to ensure compliance with tax obligations?

To ensure compliance with tax obligations, sellers need to:

  • Thoroughly understand the legal regulations regarding taxes related to their business activities.
  • Maintain complete, accurate, and honest accounting records.
  • Declare taxes fully and on time.
  • Pay taxes in full and on time.

Are you facing difficulties in fulfilling tax obligations when selling on Shopee? Contact Lameco today for free consultation!

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