Why did hundreds of Grabike drivers shut down the app, crowded



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Caption
At around 1:00 p.m. on December 7, hundreds of Grabike motorcycles in Grab T-shirts held a parade around Sword Lake, Hoan Kiem district, Hanoi, in response to the increase in discount rates. Screenshot.

Regarding the above case, on December 8, lawyer Dang Van Cuong – Chinh Phap Law Office (Hanoi Bar Association) said: In the type of transport, technology “embrace” the vehicle, The technology taxi is a new type that the legal system gradually completes step by step, so that disputes and lawsuits between related parties may arise.

Recently, the legal documents related to the tax management and collection of this technological vehicle have changed significantly. Specifically, according to Decree 126/2020 / ND-CP governing the Tax Administration Law, as of December 5, the value added tax (VAT) rate for technological vehicles will be 10% of the collection.

According to this regulation, if the VAT on technological vehicles increases from 3% to 10% on sales and the freight remains the same, the driver’s income will decrease by 8%. For example, a trip costs 100,000 VND, the driver receives 76,400 VND in revenue (after deducting taxes and connecting service fees). Under Decree 126, drivers will only receive 70,800 VND. The nature of VAT is that the income of consumers and transportation companies is increased by the freight rates that consumers pay to the state, not by the tax that companies must pay.

“With technology taxis, drivers have to pay personal income tax and companies have to pay corporate income tax. If VAT is included in the price, the customer must pay it. However, the determination of VAT will increase freight charges. According to some drivers, they have to pay the company up to 20%, even up to 30% VAT, not the prescribed 10%. Therefore, some drivers have opposed the policy of this technology car company, ”said attorney Dang Van Cuong.

According to lawyer Dang Van Cuong, if technology drivers disagree with new business policies, they have the right to express their attitudes and opinions to companies. However, the protest or gathering of people must not cause insecurity or public disorder. In case aggressive drivers gather a lot of people yelling, damaging, affecting safety and social security, making the business unable to operate or causing traffic jams, Representative of the Lawyers Office Mr. Chinh said: You will be treated by acts that disturb public order. In the case of drivers who object in an “orderly” manner and have a discipline that does not affect social security or order, this issue is allowed by law.

Explaining the continued increase in the discount to 30%, the driver reacted fiercely, the Grab representative said: Since early December 2020, Grab Vietnam adjusted the base rate for some Grab services across the country. . “This adjustment is to reinvest in new initiatives, to help research bring new benefits to future customers and to secure revenue opportunities for driving partners against market prices.” a lot of changes in recent years, while keeping Grab’s services competitive, “said a Grab representative.

Currently, the company applies a deductible rate calculated on the income of the vehicle that includes the commissions paid to the company, 10% VAT and 1.5% tax on the personal income of the driver. This rate will increase from 20-25% to 27,273 – 32,841% (depending on the cooperation contract of both parties). However, Grab said that, maintaining the level of commissions, the increase in the deduction is in the increase in VAT under Decree 126, effective as of December 5.

Accordingly, the way of calculating VAT on technology transport services such as: Grab, Go-Jek … also known as personal business cooperation unit, will change. Instead of separating the driver to pay 3% VAT on actual income and the company pays 10% VAT on the discount as before, the company will be responsible for declaring and paying 10% VAT on total income . paying customers. This is the tax that the user must pay and the business is only the payer.

Ms Ta Thi Phuong Lan, Deputy Director of the Department of Tax Administration of Small and Medium Enterprises, Business Households, Individuals (General Tax Department) stated: The calculation of VAT of 10% on total income applies to both types. Call technology vehicles, including taxis and motorcycles. With food delivery and delivery services, the tax authority will consider a different tax calculation, depending on the case and the specific cash flow because the cooperation also involves a third party. Explaining the new tax calculation method, Ms Ta Thi Phuong Lan stated: The tax agency does not aim to increase driver taxes, but to collect VAT according to the nature of business activities.

Explaining this issue, Mr. Dang Ngoc Minh, Deputy Director of the General Tax Department, said: The new tax regulations will apply uniformly to all types of transportation services. “The responsibility of the declaration is of the company. According to the regulations, the declaration rate is 10% and the tax paid to the company will be deducted. With this regulation, the driver is only responsible for declaring and paying the personal income tax of 1.5%, if the income exceeds 100 million VND / year. Those below this rate will receive a tax refund. Therefore, it is not only about the interests of the customers, but also about the benefits of the drivers. The driver must also understand his rights and obligations, ”said Dang Ngoc Minh.

Get high freight rates to offset the VAT rate

To guarantee the income of the driver when the VAT increases according to Decree 126, Grab has just increased the price of 5 – 6% of taxi services, technology “taxi” nationwide.

Consequently, the first 2km fare for 4-seat GrabCar service in Hanoi, Bac Ninh, Ho Chi Minh City, Binh Duong, Dong Nai, Can Tho increased to 27,000 VND, 2,000 more than before / 5 /. twelfth. This rate in other cities like Hai Phong, Quang Ninh, Da Nang … increased 3,000 VND to 25,000 VND. Grab also increased the rate per km (after the first 2 km) for the 4-seater GrabCar service from VND 500 to 1,000, depending on the city. In which, 1,000 VND is the largest increase applied to customers in Hanoi and Bac Ninh. Currently, the price per km of GrabCar 4 seats in these two cities is 9,500 VND, equivalent to Ho Chi Minh City, Binh Duong and Dong Nai.

The company also adjusted the rate for the 7-seat GrabCar service with the increase rate equivalent to 4 seats. With the motorcycle taxi service with GrabBike technology, the rate per km (after the first 2 km) increases from 3,400 VND to 4,000 VND. And the rate calculated according to travel time (after the first 2 km) increased from 300 to 350 VND per minute.



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