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As of the end of December 9, Grab and the General Tax Department have yet to find a common voice on collecting VAT with the shared ride service.
On the afternoon of December 9, representatives of Grab worked with the General Directorate of Taxation to share the problems in implementing Decree 126 – changing the way of declaring value added tax (VAT) with the technology car service of 5/12.
However, at the end of the meeting, Grab issued a statement in which he said that “extremely disappointed because the results of the work have not achieved any positive results” because the General Tax Office has not been consistent in identifying the issue. are subject to VAT.
For its part, the General Tax Directorate said that – it has clearly explained to Grab that Decree 126 does not have any change in the policy of value added tax.
“Companies must declare VAT on all turnover from business cooperation activities. For Grab is a transport company, the company declares VAT according to the deduction method, the tax rate is 10% and the company Input VAT can be deducted according to regulations ”, indicated the General Directorate of Taxation.
After Grab raised fares and adjusted discounts, Grabike drivers shut down the app and went on strike on the afternoon of February 7 in Hanoi. Image: Anh You.
After Decree 126 enters into force, to guarantee the driver’s income when VAT, Grab increases 5-6% of the price of taxi services, mototaxi services nationwide.
Exchange with VnExpress after meeting with Grab, The representative of the tax agency confirmed The fact that Grab increases discounts and freight rates is not due to Decree 126, but to certain factors that modify corporate policies.
Ms Ta Thi Phuong Lan, Deputy Director of the Department of Tax Administration of Small and Medium Enterprises, Business Households and Individuals (General Tax Department) explained that Grab said that the rate increase was due to taxes, so it was necessary to have an afternoon meeting. /twelfth. But taxes cannot intervene when Grab raises the discount rate and raises rates because it is a business right. According to her, Grab also did not provide enough information that this increase was due to taxes.
Ms. Lan analyzed, the user VAT and price increase only when one of two factors is the tax rate or the tax base (the price of construction without VAT) increases. If the tax rate increases, the responsibility is due to the tax authorities, while the tax base increases the business, he said. In this case, the tax authority stated that the VAT rate of 10% applied to the type of operation is the same as that of the transport company.
Previously, due to the lack of legal brokers and instructions from the tax authorities, Grab declared the VAT incorrectly and not enough, so when recalculating the tax under Decree 126, Grab takes care of rebuilding the price. VAT included so that the price does not rise.
“If Grab still wants to keep his income, of course the price will increase, but not because the tax authorities increase the tax rate,” Lan said. The tax authority suggested that Grab coordinate with the tax authorities to communicate the true nature of the problem.
For my part, at launch, Grab shared “very frustrated” about the request of the General Department of Taxation: he wants to increase the tax revenue with the income of the driver’s partner from 3% to 10%, even though they know that these drivers are not able to deduct VAT. entry.
According to this company, the General Directorate of Taxation does not have a clear explanation but it is based on very inconsistent arguments. “The General Tax Department has confirmed that the motorcycle taxi driver is an employee of Grab and does not have to pay VAT on his income,” Grab said.
Grab cited an official letter dated February 8, 2017 from the General Directorate of Taxation showing that the authorities classified two-wheelers as business persons and taxpayers under Article 4 of the Value Added Tax Law. The above dispatch instructs companies that business cooperation income should be allocated to two entities, including income from Grab (subject to a 10% tax) and those of the driver’s partner (subject to a 3% tax rate) according to the method of calculating the direct tax applicable to natural persons.
Grab said the General Tax Department wants to ensure budget revenue for entrepreneurs who do business with the organization. According to point c, clause 5, article 7 of Decree 126, the company is responsible for declaring and paying VAT on all income from business cooperation activities at the general rate of the organization of 10%.
Grab’s argument is that Decree 126 only regulates the procedures and methods of filing and paying taxes; And the determination of who should pay the tax, the taxpayer – is subject to VAT, must be based on the Law of Value Added Tax. This company believes that it is incompatible with the Law of Value Added Tax as a taxpayer of all sales, including the participation of the driving partner. .
Anh Tu – Quynh Trang
