Vietnam’s Online Sales Tax Faces Concerns Over Implementation

• Concerns have emerged over a draft decree on tax management for e-commerce and digital platforms.
• The regulation will take effect on April 1 and applies to individual sellers and household businesses.
• Businesses have raised concerns about the draft decree’s timeline, needing more time to develop IT systems, allocate human resources, and educate sellers on compliance requirements.
• VCCI proposed postponing the enforcement to July 1 to allow adequate preparation.
• VCCI emphasized the importance of a well-structured tax framework that minimizes administrative burdens and compliance costs.
• The chamber stressed the need for clear definitions of responsibilities among stakeholders to ensure a smooth and efficient implementation of the new tax system.
• Individuals conducting regular business on e-commerce and digital platforms will be required to declare taxes monthly, while household businesses must report their revenue, tax payable, and business expenses.
• VCCI proposed allowing lump-sum tax payments for individuals with a limited number of transactions.
• The draft decree mandates that online sellers declare business expenses, which VCCI deemed unnecessary.
• Dao Kim Loan, a distributor of Riman Incellderm pharmaceutical and cosmetic products, voiced concerns over the proposed tax decree’s differentiation between residents and non-residents in Vietnam for e-commerce taxation.
• Loan pointed out that accurately determining residency status in the digital environment poses significant challenges.

Source: en.vietnamplus.vn

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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