Hundreds of drivers stretching banners opposing Grab to increase the VAT rebate, what does Grab say?

On the morning of December 7, hundreds of GrabBike drivers turned off the application, at the same time focused on stretching banners to protest Grab’s increase in discounts.

Drivers said that the increase in discount from 20% to more than 27.2% is too high.

This discount rate increase is applied in parallel with the rate increase, after Grab is subject to 10% value added tax (VAT) under Decree 126/2020 / ND-CP detailing a number of articles of the Law. Tax administration, effective from December 5, 2020.

Responding to the driver’s focus on opposing the new discount policy, Grab said: Before and right after the issuance of Decree 126/2020 / ND-CP, the unit actively participated in giving comments. presented in detail the impact of the decree to the tax administration agency, at the same time repeatedly sent documents asking for guidance on the implementation of the decree. However, so far Grab has not received an official response from these agencies.

Grab said that it had carefully considered to propose a new appropriate fare, and at the same time deducted 10% VAT obligation from the fare that users currently pay.

“Using the application fee (discount) apply to partners drivers remain unchanged”, the Grab feedback.

Grab said that throughout the process of doing business in Vietnam, compliance with the law is always its top priority. And Grab is now strictly complying with the Law on Value Added Tax 2008, Law on Tax Administration 2019, guiding documents of the authorities, and especially Decree 126/2020 / ND-CP (ND). 126), effective December 5, 2020. In which, points a and c, clause 5, Article 7 of Decree 126 stipulate:

” Organizations and individuals making tax declaration on behalf of taxpayers and paying taxes on behalf of taxpayers must fully comply with the regulations on tax declaration and tax payment as prescribed for taxpayers in this Decree. including:

a) Organizations and individuals make tax declaration on behalf of taxpayers in accordance with the tax law. …

c) If the organization does business with individuals, the individual does not directly declare tax. Organizations shall declare value-added tax on all revenues of their business cooperation activities in accordance with the organization’s tax law and tax administration, irrespective of the form of distribution of combined results. business cooperation, and at the same time, declare and pay personal income tax on behalf of individuals for business cooperation. ”

According to the above provisions of Decree 126, 10% VAT (according to the tax law that Grab is implementing) is applied to all revenue from the transport business, including the transport revenue of partners. driver. Therefore, in order to comply with this regulation, Grab has carefully considered to propose a suitable new fare, and at the same time, deducted 10% VAT obligation from the current vehicle fare. pay. The application usage fee (discount) applied to the driver partner remains unchanged.

Also according to Decree 126, business cooperation individuals (in this case, the driver’s partner) are not directly required to declare tax and pay tax; The business is responsible for collecting and paying taxes for the driver’s partner. Therefore, Grab’s deduction of the tax payable, declaration, and payment for the driver partners is in compliance with Decree 126. All tax collection on behalf of Grab is paid to the State Treasury. and are certified by the tax authorities to fulfill their tax obligations.

” Grab always appreciates and listen to feedback from users and partners. We are actively working with authorities to balance rights and benefits for stakeholders ,” said Grab.

With Decree 126, beGroup said it will continue to wait for a specific guidance circular from the tax authority, to have an accurate basis for implementing tax obligations and supporting drivers to comply with the law.

In response to the press, the Gojek side also said that there would be an adjustment but is analyzing the situation. “We will notify our driver partners and customers after more detailed information. Gojek is committed to always complying with all legal regulations in any market where Gojek operates. “, the representative of Gojek responded on VnExpress.