From tomorrow (July 1), e-commerce platforms will pay taxes on behalf of online sellers.

According to Decree No. 117/2025/ND-CP of the Government regulating tax management for business activities on e-commerce platforms, digital platforms of households, individuals, and organizations managing e-commerce platforms will deduct and pay tax on behalf of value added tax and personal income tax for sellers (households and individuals doing business on e-commerce platforms). Sellers include individuals residing domestically and abroad.

The deduction of the above taxes is made immediately after the order is confirmed as a successful transaction and the buyer accepts payment. The amount of value added tax and personal income tax is determined as a percentage of the revenue of each transaction.

Specifically, the value added tax rate for goods is 1%; for services is 5%; for transportation and services associated with goods is 3%.

Regarding personal income tax for resident individuals, the tax rate for goods is 0.5%; services 2%; transportation and services associated with goods 1.5%. Non-resident individuals (living abroad) are subject to personal income tax of 1% for the group of goods, 5% for the group of services and 2% for the group of transportation and services associated with goods.

In case it is not possible to determine whether the transaction generating revenue from the e-commerce platform is goods or services or type of service, the amount of tax to be deducted is determined at the highest percentage rate.

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.

Decree No. 117/2025/ND-CP also 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; 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 to the organization managing the e-commerce platform.

At the same time, 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.

The issuance of the decree is expected to improve the efficiency of tax management in the rapidly growing e-commerce sector, create a fair business environment between online sellers and traditional stores that must fully fulfill tax obligations, and ensure state budget revenue.

Source: https://hanoimoi.vn/tu-ngay-mai-1-7-san-thuong-mai-dien-tu-nop-thue-thay-nguoi-ban-hang-online-707398.html