Applicable objects
The Decree stipulates the subjects of application including:
1- Organizations that are managers of e-commerce trading floors, organizations that are managers of digital platforms with payment functions, and organizations with other digital economic activities are subject to withholding and paying taxes on behalf of others.
2- Households, resident individuals and non-resident individuals with business activities on e-commerce platforms and digital platforms.
3- Tax authorities and related organizations and individuals.
Deduction, tax payment on behalf
According to the Decree, organizations managing domestic and foreign e-commerce platforms that are subject to deduction and payment of tax on behalf of others (including owners directly managing e-commerce platforms or persons authorized to manage e-commerce platforms) shall deduct and pay tax on behalf of others the value added tax payable in accordance with the provisions of the law on value added tax for each transaction of providing goods and services generating revenue domestically by households and individuals doing business on e-commerce platforms.
Organizations managing domestic and foreign e-commerce platforms that are subject to withholding and paying taxes on behalf of (including owners directly managing e-commerce platforms or persons authorized to manage e-commerce platforms) shall withhold and pay taxes on behalf of resident individuals the personal income tax payable in accordance with the provisions of the law on personal income tax for each transaction of providing goods and services generating domestic and foreign revenue of resident individuals conducting business on e-commerce platforms; shall withhold and pay taxes on behalf of non-resident individuals the personal income tax payable in accordance with the provisions of the law on personal income tax for each transaction of providing goods and services generating domestic revenue of non-resident individuals conducting business on e-commerce platforms.
Time of deduction, determination of tax amount to be deducted
Regarding the time of deduction, the Decree stipulates: The organization managing the e-commerce platform shall deduct the value added tax and personal income tax payable for each transaction of providing goods and services generating revenue on the e-commerce platform under its management as soon as the transaction is confirmed to be successful and payment is accepted for the transaction of selling goods and services on the e-commerce platform to households and individuals.
The amount of value added tax and personal income tax to be deducted is determined as a percentage (%) of the revenue of each transaction of selling goods and providing services.
The percentage of value added tax is implemented according to the provisions of the Law on Value Added Tax as follows: Goods: 1%; services: 5%; transportation and services associated with goods: 3%.
The percentage of personal income tax is implemented according to the provisions of the Law on Personal Income Tax as follows:
- For resident individuals: Goods: 0.5%; services: 2%; transportation, services associated with goods: 1.5%.
- For non-resident individuals: Goods: 1%; services: 5%; transportation, services associated with goods: 2%.
In case the organizations managing the e-commerce platform subject to deduction and payment cannot determine whether the transaction generating revenue from the e-commerce platform is goods or services or type of service, the determination of the amount of tax to be deducted shall be carried out according to the highest percentage rate.
Revenue from each transaction of selling goods and providing services is the amount of money from selling goods and services that households and individuals receive and that the organization managing the e-commerce platform collects on their behalf.
How to declare and pay deducted tax
Organizations managing e-commerce platforms declare the amount of tax deducted monthly.
For canceled or returned transactions, the organization managing the e-commerce platform shall offset the deducted or paid tax of the canceled or returned transaction with the deducted or paid tax of the transactions selling goods and providing services.
The amount of tax paid on behalf of the organization managing the e-commerce platform is determined by the total tax of the transactions selling goods and providing services after offsetting with the total tax of the transactions canceled or returned by households and individuals (if any).
Responsibilities of households and individuals doing business on e-commerce platforms
The Decree stipulates that households and individuals residing and doing business on e-commerce platforms are responsible for declaring and paying special consumption tax, environmental protection tax, resource tax and other amounts payable to the state budget collected by tax authorities in accordance with the provisions of the law on tax, the law on tax management and other relevant laws.
Households and individuals conducting business activities on e-commerce platforms are responsible for providing complete and accurate information on tax codes or personal identification numbers (for Vietnamese citizens); passport numbers or identification information issued by competent foreign authorities (for foreign citizens) and mandatory information for sellers as prescribed by the law on e-commerce to the organization managing the e-commerce platform.
Provide accurate, complete and timely information and documents related to determining tax obligations to organizations managing e-commerce platforms that are subject to tax deduction and payment and are responsible for fulfilling tax obligations as prescribed.
Households and individuals whose value-added tax and personal income tax have been deducted, declared and paid on their behalf by the organization managing the e-commerce platform as prescribed in this Decree shall not have to declare and pay value-added tax and personal income tax for business activities on the e-commerce platform for which tax has been deducted and paid on their behalf.
This Decree comes into force from July 1, 2025.
Source: https://phunuvietnam.vn/quy-dinh-quan-ly-thue-doi-voi-hoat-dong-kinh-doanh-tren-nen-tang-thuong-mai-dien-tu-nen-tang-so-cua-ho-ca-nhan-20250611212712205.htm
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