I. Legal basis

• The Law on Tax Administration 2019
• The Law on Tax Administration 2025
• Decree No. 117/2025/ND-CP

II. Applicable subjects

Decree No. 117/2025/ND-CP provides that the applicable entities include:

• Organizations acting as operators of e-commerce trading platforms; organizations acting as operators of digital platforms with payment functions; and other organizations engaged in digital economic activities that are subject to withholding and remittance of tax on behalf of others;
• Resident households, resident individuals, and non-resident individuals conducting business activities on e-commerce platforms and digital platforms;
• Tax administration authorities and other relevant organizations and individuals.

III. Supplementation of regulations on tax declaration for e-commerce business activities of business households and individual businesspersons

Compared with the Law on Tax Administration 2019, Article 13 of the Law on Tax Administration 2025 introduces supplementary provisions on tax declaration for e-commerce business activities of business households and individual businesspersons, as follows:

For business households and individual businesspersons conducting business activities on e-commerce platforms and other digital platforms:

• In cases where business activities are conducted on e-commerce platforms or other digital platforms that provide online ordering and payment functions, the operators of such e-commerce platforms or other digital platforms (whether domestic or foreign) shall be responsible for withholding, declaring on behalf of, and remitting on behalf of the withheld tax amounts of business households and individual businesspersons.
• In cases where business activities are conducted on e-commerce platforms or other digital platforms that do not provide online ordering and payment functions, business households and individual businesspersons shall directly declare, assess, and pay taxes in accordance with the applicable regulations.

IV. Timing for withholding and determination of the amount of tax to be withheld

With respect to the timing of withholding, the Decree provides as follows: Organizations managing e-commerce platforms shall withhold the value-added tax and personal income tax payable for each transaction involving the supply of goods or services that generates revenue on e-commerce platforms under their management, immediately upon confirmation of the successful transaction and acceptance of payment for the sale of goods or services on such platforms to business households and individuals.

The amount of value-added tax and personal income tax to be withheld shall be determined as a percentage (%) of the revenue from each transaction involving the sale of goods or the provision of services.

The percentage (%) rates for value-added tax calculation shall be applied in accordance with the Law on Value-Added Tax as follows: Goods: 1%; services: 5%; transportation and services associated with goods: 3%.

The percentage (%) rates for personal income tax calculation shall be applied in accordance with the Law on Personal Income Tax as follows:

• For resident individuals: Goods: 0.5%; services: 2%; transportation and services associated with goods: 1.5%.
• For non-resident individuals: Goods: 1%; services: 5%; transportation and services associated with goods: 2%.

Where organizations managing e-commerce platforms that are subject to withholding and remittance on behalf of taxpayers are unable to determine whether a revenue-generating transaction conducted on an e-commerce platform relates to goods, services, or the type of service provided, the amount of tax to be withheld shall be determined at the highest applicable percentage rate.

The revenue from each transaction involving the sale of goods or the provision of services shall be the amount of consideration for goods or services received by the business household or individual, which is collected on their behalf by the e-commerce platform operator.

V. Procedures for declaration and remittance of withheld tax amounts

E-commerce platform operators shall declare the amount of tax withheld on a monthly basis.

In respect of cancelled transactions or returned goods, e-commerce platform operators shall offset the amount of tax already withheld and remitted on behalf of taxpayers for such cancelled transactions or returned goods against the tax amount required to be withheld and remitted on behalf of taxpayers for transactions involving the sale of goods and the provision of services.

The amount of tax remitted on behalf of taxpayers by e-commerce platform operators shall be determined as the total tax amount arising from transactions involving the sale of goods and the provision of services, after offsetting against the total tax amount of cancelled or returned transactions of business households and individuals (if any).

VI. Responsibilities of business households and individuals conducting business activities on e-commerce platforms

The Decree provides that resident business households and individuals conducting business activities on e-commerce platforms shall be responsible for declaring and paying special consumption tax, environmental protection tax, natural resource tax, and other amounts payable to the state budget that are collected by tax authorities in accordance with the tax laws, the law on tax administration, and other relevant legislation.

Business households and individuals conducting business activities on e-commerce platforms shall be responsible for providing complete and accurate tax identification numbers or personal identification numbers (for Vietnamese citizens); passport numbers or identification information issued by competent foreign authorities (for foreign nationals); and other mandatory seller information in accordance with the law on e-commerce to the e-commerce platform operators.

To provide complete, accurate, and timely information and documents relevant to the determination of tax liabilities payable to e-commerce platform operators that are subject to withholding and remittance on behalf of taxpayers, and to assume responsibility for fulfilling tax obligations in accordance with applicable regulations.

Business households and individuals whose value-added tax and personal income tax have been withheld, declared, and remitted on their behalf by e-commerce platform operators in accordance with this Decree shall not be required to declare or pay value-added tax or personal income tax in respect of business activities conducted on e-commerce platforms for which tax has already been withheld and remitted on their behalf.

VII. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

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■ Contact Hankuk Law Firm:

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