E-commerce platforms required to pay tax on behelf of sellers

Both domestic and foreign e-commerce platforms will be responsible for handling tax obligations for individuals and businesses that sell goods and services through these platforms from April 1, 2025, according to the revised Tax Management Law which has been adopted recently the National Assembly.

The policy aims to ensure tax fairness, prevent tax evasion, simplify tax collection procedures and protect consumer rights in Vietnam.

Under the revised law, both domestic and foreign e-commerce platforms and digital service providers must deduct and pay taxes on behalf of their sellers and declare the deducted tax amounts.

If a seller is not eligible for tax deduction and payment by the platform, the seller must directly register, declare, and pay taxes.

Vietnam is home to around 412 e-commerce platforms in which 191,000 organizations and individuals are doing business.

Around 102 foreign service providers, such as Meta (Facebook), Google, TikTok, and Netflix, have registered and paid taxes through the electronic portal of the tax authorities in Vietnam.