- Digital platforms in Vietnam must quickly adapt to new tax reporting obligations.
- New tax laws require platforms to withhold, declare, and remit VAT and personal income tax on sales by individuals.
- Decree 117, effective July 1, sets tax rates based on seller residency status.
- Platforms, both local and foreign, face increased compliance burdens and documentation requirements.
- Foreign platforms are struggling to comply due to lack of clear guidance and a tight timeline.
- Previous attempts to implement similar requirements faced pushback and were shelved.
- The new obligations are part of Vietnam’s tax reform strategy through 2030.
- Platforms are now responsible for tax declaration on behalf of individual sellers.
- The rollout of these obligations is causing strain on tax officials and the e-commerce ecosystem.
- Inconsistent effective dates across different tax laws add to the complexity.
Source: news.bloombergtax.com
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.
