Frequently Asked Questions About Tax Obligations on Shopee - Part 2

5 July, 2024 by
Frequently Asked Questions About Tax Obligations on Shopee - Part 2
Lameco JSC

Continuing from the commonly asked questions about tax obligations on Shopee in part 01. Today, we will proceed with Part 02, addressing common queries related to tax matters when doing business on Shopee.

Let's now explore what Part 02 of the Frequently Asked Questions About Tax Obligations on Shopee has to offer!

Why Doesn't Shopee Guide Sellers on Documents and Procedures for Tax Collection?

Many sellers on Shopee wonder why Shopee does not directly provide guidance on procedures, documents related to tax collection. In reality, Shopee is an e-commerce platform, not a tax authority. Tax collection falls under the jurisdiction of the authorized state tax agencies, based on the current tax laws.

Shopee is responsible for assisting sellers by providing information, cooperating with tax authorities when required. However, Shopee cannot act on behalf of sellers to carry out tax procedures or provide specific legal guidance.

For detailed guidance on procedures, tax documents, sellers should directly contact the local tax authorities or refer to information on the official website of the General Department of Taxation.

Do Sellers with Multiple Storefront Accounts on E-commerce Platforms Need to Declare Tax on the Revenue from All Accounts?

The answer is YES. According to tax regulations, sellers on e-commerce platforms with income from business activities must fulfill tax obligations on the entire revenue, regardless of the revenue generated from any storefront account.

Using multiple storefront accounts does not alter the tax obligations of the seller. Tax authorities may request Shopee to provide information on all seller storefront accounts to accurately determine tax obligations.

Can Sellers Use Family Members' Tax Information to Declare Taxes?

Using someone else's tax information to declare taxes is a legal violation and may lead to criminal prosecution.

Every individual, business entity must independently register, declare, and pay taxes according to regulations. Using someone else's information, even if they are family members, poses significant legal risks and affects business credibility.

Can Sellers Use Someone Else's Bank Account for Transactions?

Similarly to tax information, using someone else's bank account for business transactions on Shopee is a legal violation.

Tax authorities may request Shopee to provide information on the bank account linked to the storefront to track cash flow, determine tax obligations.

Using someone else's bank account complicates financial management, income source verification, potentially leading to legal disputes.

What Should Sellers Do When Buying Back a Storefront Account from a Previous Seller?

When buying back a storefront account from another person, consider the following:

  • Verify storefront information: Ensure that details regarding the owner, business industry on the storefront are accurately updated.
  • Review operational history: Thoroughly check order history, customer reviews, notifications from Shopee to understand the previous operational status of the storefront.
  • Update contact information: Immediately update contact information including phone number, email of the new owner for Shopee to contact when necessary.
  • Complete ownership transfer procedures: Contact Shopee for guidance on completing the storefront ownership transfer procedures according to regulations.
  • Transparent discussions on financial obligations: Ensure that all fees, financial obligations related to the storefront have been fully paid by the previous owner.

How Does Shopee Safeguard Sellers' Personal Information?

According to Shopee's privacy policy, they commit to safeguarding sellers' personal information according to legal regulations. Shopee employs technical measures and management to protect user information from unauthorized access, usage, or disclosure.

However, sellers also need to secure their personal information, refrain from sharing login information, passwords with anyone.

Facing Challenges in Fulfilling Tax Obligations When Selling on Shopee?

Contact Lameco now for free consultation!

Lameco provides professional tax consulting services, supporting sellers on Shopee in fulfilling tax obligations fully and legally. Lameco's experienced team will address all queries, assist you in completing tax documentation quickly and efficiently.

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