Livestream Sales: Important Tax Obligations to Note!

Issued Document: Urgent Dispatch No. 01/CD-TCT dated June 4, 2024, from the General Department of Taxation

Online business operators, especially those selling via livestream, must be aware of their tax declaration, payment obligations, and the use of electronic invoices (e-invoices).

Tax Compliance for Online Sales: The General Department of Taxation has instructed local tax departments and the Large Enterprise Tax Department to conduct thorough and comprehensive inspections and audits. These will focus on the tax declaration, payment, and use of e-invoices by businesses and individuals involved in e-commerce, online marketplaces, affiliate marketing, digital content, advertising revenue, software provision, and particularly those engaging in online sales and live streaming.

Mandatory Use of E-Invoices:

Starting from August 1, 2024, the following businesses must implement e-invoices generated from cash registers:

• Golf course ticket sales and related services.

• Sales of golf apparel, equipment, accessories, etc.
  

Tax departments are also required to review, catalog, and assess the tax management of businesses involved in ticket sales for tourist attractions, and entertainment activities, and report their findings to the General Department of Taxation by August 1, 2024.

Practical Implications:

• Enhanced Tax Scrutiny: Online sellers, including those using livestream platforms, should expect increased tax audits and inspections.

• Mandatory E-Invoices: Compliance with the new e-invoice requirements is crucial for specific industries starting in August 2024.

• Proactive Tax Management: Businesses should maintain accurate tax records and ensure timely tax declarations and payments.

Contact W&A for more details!