8 https://www.mondaq.com/tax-authorities/1286244/tax-obligations-of-sellers-on-
vietnamese-e-commerce-platforms
9 https://www.marketwatch.com/press-release/global-gig-economy-market-
highlights-2023-2030-best-growth-survey-2023-04-27
10https://www.ctvnews.ca/business/almost-half-of-canadian-gig-workers-not-willing-
to-declare-all-income-at-tax-time-survey-finds-1.6299550
11 https://www.taxpolicycenter.org/taxvox/lower-1099-k-threshold-would-put-gig-
workers-more-equal-footing
Online sellers sometimes attempt to avoid paying taxes by under reporting
income to exploit tax exemption limits, especially when selling on multiple
platforms. Beyond under reporting, there is a challenge for governments to
track taxable activities under their jurisdiction, especially when relating to
businesses with a presence abroad. The Vietnamese General Department
of Taxation recently obtained information on over 53,000 individuals
and 14,800 organizations selling on Shopee, Lazada, Sendo, and other
platforms. The authority plans to analyze the data in order to investigate
and uncover tax evasion and non-compliance
8
.
Online sellers
With platforms like Uber, Fiverr, and Airtasker, the global gig economy
market size reached nearly $414 million in 2022 and is expected to expand
to roughly $919 million by 2030
9
.
Because many players in the gig economy are supplementing their main
income sources with additional income streams which are relatively
small, non-compliance in this segment is rampant. An estimated 50%
of Canadians participating in the gig economy are not reporting, and 1 in
5 don’t understand that they need to
10
. In the US, an estimated 16% of
the population earned money on an online gig platform, and the IRS is
finding it difficult to determine the correct amounts of taxes owed and
collected
11
.
Gig economy
+ Sellers avoid taxes or falsely claim exemptions,
especially when using multiple platforms
+ Vietnam has obtained data from various
platforms to charge tax dodgers
+ $414M global market size
+ Many supplement their primary income
with gigs and don’t report it
3
Combatting
Tax Evasion
in the Digital
Marketplace
2
Challenges
for Tax
Authorities
4
About
NEXYTE
5
1
Tax Evasion
in the Digital
Economy