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Decree No. 117/2025/ND-CP requires domestic and foreign e-commerce platforms with direct payment functions to withhold VAT on transactions by individuals selling goods and services in Vietnam.
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VAT withholding rates are set at 1% for goods, 5% for services, and 3% for transport and services related to goods, based on the turnover of each transaction.
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VAT must be deducted once the transaction is confirmed and payment accepted, declared monthly, with adjustments allowed for canceled or returned transactions against future tax liabilities.
Source: Orbitax
