- E-commerce and digital platforms in Vietnam must comply with new tax withholding requirements under Decree 117.
- Decree 117 takes effect on July 1, 2025, with varying tax rates based on transaction type and seller’s residence.
- Platforms must withhold, declare, and remit VAT and personal income tax for individual sellers.
- First filing and payment are due by August 20, 2025.
- Challenges include inconsistent effective dates, lack of guidance, and tight implementation timelines.
- Platforms must collect and process seller data, possibly revising data policies and conducting impact assessments.
- Uncertainty exists about the need for foreign platforms to appoint a certified Vietnamese provider for tax certificates.
- Digital platforms need nine to 12 months to adjust systems after guidelines are published.
- It is unclear if the Vietnamese government will offer a grace period for compliance.
Source: vatabout.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.
