Will selling online without business registration be punished?

Selling online without business registration is popular today. Many individuals and organizations doing business without properly implementing the legal regulations on business registration can not only lead to serious risks such as fines but also directly affect reputation and rights. The article below will specifically analyze the legal regulations and instructions for registering legal online sales.

Do online sales require business registration?

Selling online without business registration may be subject to penalties if registration is required. According to Clause 1, Article 55 of Decree 52/2013/ND-CP, organizations and individuals setting up e-commerce websites must register with the Ministry of Industry and Trade. However, according to Clause 1, Article 3 of Decree 39/2007/ND-CP, individuals conducting commercial activities such as petty trading, without a fixed location, do not have to register their business. Therefore, individuals selling on social networks such as Facebook and TikTok may not need to register their business, but still need to comply with regulations on invoices, taxes and origin of goods.

Conditions for online sales

Online sales must meet the following conditions to avoid penalties:

• For e-commerce websites: Must be registered with the Ministry of Industry and Trade according to Clause 2, Article 55 of Decree 52/2013/ND-CP (amended and supplemented by Decree 85/2021/ND-CP).
• For individuals selling on social networks: Tax declaration is required if revenue exceeds the taxable threshold as prescribed.
• Goods must have a clear origin: According to Clause 1, Article 37 of the Law on Consumer Protection 2023, organizations and individuals selling goods must provide information about origin, origin, uses, prices and transaction conditions.

Thus, depending on each specific case, you must ensure the above conditions when wanting to sell online to avoid being fined.

What are the penalties for selling online without business registration?

Individuals and organizations without business registration may be fined from 10,000,000 – 30,000,000 VND according to Clause 3 and 4, Article 62 of Decree 98/2020/ND-CP (amended and supplemented by Decree 17/2022/ND-CP). Specifically:

• Fine of 10 – 20 million VND if not notified or providing false information about e-commerce websites.
• Fine of 20 – 30 million VND if you do not register a website providing e-commerce services or continue to operate after being deregistered. In addition, authorities can collect taxes, impose additional penalties or force business cessation for violations.

Thus, selling online without business registration can be fined up to 30,000,000 VND. In addition, individuals and organizations without business registration may also be subject to additional sanctions or stop doing business depending on the severity of the violation.

How to register for online sales correctly

To avoid penalties, organizations and individuals need to register in accordance with regulations, specifically as follows:

• Registering individual business households: According to Clause 1, Article 87 of Decree No. 01/2021/ND-CP on business registration, individuals can register business households at the Economic Department – District People’s Committee.
• Business registration: If the scale is large, you can establish a company and register industry code 4791 (Retail by order via post or internet) or 4799 (Other retail not classified elsewhere).
• Registering an e-commerce website: Documents include the registration application (Form E-commerce-1 issued with Circular No. 01/2022/TT-BCT), business registration certificate, website operation regulations, service contract form,…

It can be seen that in order to be able to do online sales and avoid penalties, individuals and sales organizations must register according to the law. Long Phan Consulting Company is ready to assist you in carrying out this registration procedure, we guarantee to perform the service quickly and accurately.

Full package online business sales registration service at Long Phan Consulting Company

Long Phan Consulting Company provides professional online sales registration services, ensuring compliance with legal regulations. We support you with the following services:

• Support individuals registering to sell online on e-commerce platforms.
• Register business households and enterprises.
• Register for an e-commerce website
• Consulting on tax declaration and invoice issuance to avoid tax arrears.

Frequently asked questions about selling online without business registration being punished

Are all online sellers in Vietnam required to register their business?

Not all online sellers are required to register. Individuals who sell regularly on social networks without a fixed location may not need to register, but those who operate e-commerce websites must register with the Ministry of Industry and Trade.

What is “regular sales” online in Vietnam?

Casual selling” generally refers to individuals who make occasional sales on social media platforms without a fixed place of business.

What are the specific regulations for setting up an e-commerce website in Vietnam?

Organizations and individuals setting up e-commerce websites must register with the Ministry of Industry and Trade according to Decree 52/2013/ND-CP and its amended and supplemented documents.

Will individuals who only sell on social media platforms such as Facebook and TikTok be fined for not registering their business?

Individuals who primarily sell on social networks may not need to register their business, but they still must comply with regulations on invoices, taxes and origin of goods.

What are the potential penalties for not registering an e-commerce website with the Ministry of Industry and Trade?

Failure to register an e-commerce website can result in a fine of between 20 and 30 million VND, along with the possibility of being forced to stop operating.

What is the penalty for not providing accurate information about an e-commerce website?

Providing inaccurate information about an e-commerce website can result in a fine of between 10 and 20 million VND.

Besides fines, what other consequences can online sellers face if they do not comply with registration requirements?

In addition to fines, online sellers who fail to comply may face back taxes, additional penalties, and possibly being forced out of business.

What are the main conditions that online sellers must meet to avoid penalties?

Online sellers must register their e-commerce website with the Ministry of Industry and Trade (if any), declare taxes if revenue exceeds the legal threshold, and ensure the goods have a clear origin.

What information about goods must online sellers provide to consumers?

Online sellers are obliged to provide information about the origin, uses, prices and transaction conditions of the goods they sell.

How can an individual register a small online business in the form of an individual business household in Vietnam?

Individuals can register as individual business households at the Economic Department – District People’s Committee.

What are the options for registering a larger scale online business in Vietnam?

For larger-scale online businesses, individuals can establish a company and register industry code 4791 (Retail by mail order or internet) or 4799 (Other retail not elsewhere classified).

Conclude

Thus, individuals and organizations selling online without business registration may result in fines and tax arrears. If you have any questions related to online sales, please contact Long Phan Consulting Company immediately via the hotline 0906735386 for detailed advice from our team of experts and quick registration.