A new Decree covering taxes for online retailers has been issued, introducing stricter tax compliance obligations for e-commerce platforms, including requiring platforms to collect tax on behalf of their Vietnamese sellers.
The decree, effective 1 July 2025, enhances data sharing and enforcement capabilities of tax authorities.
Key details:
- Platform data sharing: E-commerce platforms must submit seller data, including transaction value and tax IDs, via an electronic portal (Article 5).
- Foreign supplier duties: Overseas platforms earning income from Vietnam must register, declare, and pay taxes in Vietnam or via a representative (Article 9).
- Tax rates: Taxes collected are based on existing legislation (Article 5):
- VAT: 1 percent or 5 percent depending on the business sector.
- PIT: 0.5 percent to 5 percent depending on revenue type.
- Payment intermediary rules: Banks and e-wallets must report relevant transaction data for e-commerce monitoring (Article 6).
- Household & individual sellers: Online sellers must declare tax using simplified procedures, covering VAT and PIT (Articles 11–12).
Tax enforcement: Tax authorities may coordinate with other agencies and use restrictions or public naming to enforce compliance (Articles 13 & 15).
Decree 117/2025 represents a significant step in Vietnam’s effort to regulate and tax digital commerce more effectively.
See also: Vietnam Online Shopping 2025: Key Players & Growth Projections