Factors influencing e-commerce tax administration: A governance and regulation perspective

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Abstract

This study examines the main factors affecting tax management in e-commerce activities in Vietnam. Our research team employed a combination of quantitative and qualitative analyses using structural equation modeling (SEM) and various analytical tools available through Stata software. A survey sample of 342 participants, including individuals, business households, enterprises engaged in e-commerce activities, and tax officials, revealed that factors related to the specific collection characteristics of e-commerce taxation negatively impact tax management effectiveness. In contrast, other factors such as legal regulations and policies of tax, taxpayer awareness, quality of human resources, tax socialization activities, and application & development of technology contribute positively to tax administration efficiency. Among these, the quality of human resources is found to have the most significant influence on management effectiveness. Based on these insights, we discuss potential solutions to enhance the quality and effectiveness of tax administration in Vietnam, such as improving the regulatory framework to address loopholes in e-commerce taxation, leveraging advanced technologies, and strengthening the capacity of tax officials through specialized training programs. Additionally, promoting taxpayer awareness and fostering collaboration between regulatory agencies and digital platforms can further enhance governance in tax administration, ensuring a more transparent and efficient system (Giang, 2023; Adelakun et al., 2024; Qinyuan et al., 2024).

Keywords: E-Commerce, Tax Administration, Taxation of E-Commerce

Authors’ individual contribution: Conceptualization — T.N.D., T.M.T.T.; Methodology — T.N.D., T.M.N., T.M.T.T., and T.H.N.; Software — T.H.N. and G.L.V.; Validation — T.N.D. and T.M.T.T.; Formal Analysis — T.N.D. and G.L.V.; Investigation — T.H.N., G.L.V., T.T.T.K., and T.P.N.; Resources — T.P.N., T.M.T.T., and T.M.N.; Data Curation — T.N.D. and T.T.T.K.; Writing — Original Draft —T.M.T.T., T.H.N., G.L.V., T.T.T.K., and T.P.N.; Writing — Review & Editing — T.N.D. and T.M.N.; Visualization — T.H.N. and T.M.N.; Project Administration — T.M.N. and T.M.T.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H83, H26, L81, O33

Received: 12.11.2024
Revised: 14.02.2025; 24.06.2025
Accepted: 21.07.2025
Published online: 23.07.2025

How to cite this paper: Doan, T. N., Nguyen, T. M., Tran, T. M. T., Nguyen, T. H., Vu, G. L., Kim, T. T. T., & Nguyen, T. P. (2025). Factors influencing e-commerce tax administration: A governance and regulation perspective. Journal of Governance & Regulation, 14(3), 62–73. https://doi.org/10.22495/jgrv14i3art6