Practical Accounting and Taxation Issues of Individual Taxpayers in Online Business

Abstract

This research aims to study (1) causes of the problems, (2) practical problems, and (3) recommendations for solving problems, with an emphasis on accounting and taxation. This research is a qualitative study, using in-depth interviews and focus group discussions of 30 individual online business operators. The study found that (1) the causes of the problems are due to the lack of knowledge and understanding of online business operations, investment planning, finance, marketing, freight management, accounting, taxation, and related laws, and the lack of ethics of some entrepreneurs, such as false advertising, the sale of low-quality products, and counterfeit products, which are illegal, (2) practical problems are mainly accounting problems, as there are no regulations requiring individuals to keep accounts like juristic people. As for legal
and taxation problems, there is a lack of clarity in the application of laws and penalties related to online business operations for all offenses. There are also problems of inequality and unfairness between online business operators who are in the taxation system and those who are not in the system and evade taxes. There are still challenges in law enforcement and tax collection from online businesses, and (3) recommendations for solving problems, entrepreneurs must have complete and systematic accounting and document collection. They should open a separate bank account for their business and follow up on news, regulations, and laws related to their products and intellectual property laws to ensure correct practices and keep up with continuous changes. They also must register for e-commerce to show their identity and build trust with
customers and comply with relevant tax laws, e-payment tax, personal income tax, and value-added tax. In addition, addressing inequality, good governance and supervision, and fairness in business practices should also be considered.