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Passengers pick up the GrabCar at Tan Son Nhat airport in the afternoon from 7 to 12 – Photo: QUANG DINH
In a statement released on the afternoon of December 9, the General Directorate of Taxation said that it had just ended the meeting with Grab a few minutes ago to ask this company for explanations when it said that Decree 126 caused rates and discounts to be raised.
At the meeting, as reported by the General Directorate of Taxation, Grab could not prove that the reason for the increase in rates and discounts was due to Decree 126, which businesses reported in some newspapers in recent days.
About this, talk to Online youthMs. Ta Thi Phuong Lan, Deputy Director of the Department of Tax Administration of Small, Medium and Business Households, Individuals of the General Department of Taxation, said that Decree 126 guides some articles of the Tax Administration Law regarding the declaration tax, not tax rate adjustments and tax policy regulations. So the fact that Grab raised rates and discounts as of December 5 was not due to Decree 126.
“Grab has the right to increase rates and discounts, but cannot blame politics,” Lan stressed.
According to Ms. Lan, since there was no specific guidance on tax policies for individual business cooperation models, the implementation of the tax return for the Grab model was inconsistent and not in accordance with regulations.
Therefore, Decree 126 contains detailed instructions on tax return for business cooperation models with natural persons. The tax policy for the transportation business has not changed, it has been prescribed in advance and a 10% value added tax rate has been applied uniformly.
Thus, Ms. Lan emphasized that Decree 126 does not increase freight rates because the value added tax rate is still applied at 10% as always. As for drivers, drivers only have to pay the personal income tax of 1.5% if the collection exceeds 100 million VND / year, VAT is not required to pay 3% as before.
Ms. Lan also said that this shows that Decree 126 does not increase freight rates or tax rates for drivers. Therefore, Grab is responsible for adjusting the taxable price structure to ensure that it does not affect the interests of consumers or the income of the driver.
In addition to the above information, according to the General Directorate of Taxation, in the meeting with Grab, the agency also clearly explained that Decree 126 establishes the obligation to declare the value added tax on business cooperation activities that are implemented by the companies. . Companies must declare value added tax on all turnover from this cooperative activity.
Grab is a transport company, so companies must declare value added tax at a rate of 10% and deduction of input tax according to regulations.
What did Grab say after the meeting with the General Tax Department this afternoon?
Late on the same day (December 9), Grab Vietnam issued a statement after the meeting with the General Tax Department, saying “disappointed with the results of the work,” but stated that it was still strictly complying with Decree 126., and at the same time request adhesion to the competent authority.
Specifically, the representative of Grab Vietnam said “extremely disappointed that the results did not achieve any positive results” because the General Tax Department was not consistent in determining the subject of the value tax. increase (VAT).
“We are very frustrated by the request of the General Department of Taxation to increase the tax revenue on the income of the driving partner from 3% to 10%, although we know that these driving partners are not able to deduct VAT. However, the General Department Tax Department did not have a clear explanation, but was based on very inconsistent points, ”said Grab Vietnam.
Specifically, Grab Vietnam said that the General Tax Department claimed that the motorcycle taxi driver is an employee of Grab and is not subject to VAT on his income.
However, in the past, according to official letter 384, also issued by the General Department of Taxation in 2017, the income from business cooperation activities must be allocated to two entities, of which Grab participates in the income. VAT is subject to 10%, while a partner’s motorcycle driver’s share of sales is subject to a 3% tax rate according to the direct tax calculation method applicable to entrepreneurs.
Grab argued that this document from the General Directorate of Taxation classifies two-wheelers as natural persons and as taxpayers under article 4 of the VAT Law.
“We also understand that the General Tax Department now wants to ensure income for the budget of entrepreneurs who do business with the organization. But we understand that the previous Decree 126 only regulates the procedures and method of filing and paying taxes, and the determination who should pay the tax and who pays the tax, are subject to VAT, should be based on the VAT Law.
Therefore, we are very concerned that the interpretation of the General Department of Taxation that the Grab Company is fully obliged to pay tax as a taxpayer for all sales, including the portion of Driver’s income, is not in line with the VAT Law ” said Grab VN. Guidance documents from the tax authorities. But we hope that the Ministry of Finance, the General Tax Department and other authorities will come in and reconsider to ensure the interests of our consumers and driving partners, “suggested Grab Vietnam.
