- New rules in Vietnam effective from 1 July 2025 require digital and e-commerce platform operators to declare and withhold VAT and personal income tax for households and individuals conducting business on the platform.
- Decree No. 117/2025/ND-CP introduces specific compliance obligations for both domestic and foreign e-commerce and digital platform operators.
- The decree applies to domestic and foreign e-commerce platform operators, digital platform operators with payment functions, and other organizations conducting digital business activities.
- VAT and personal income tax must be withheld and paid on behalf of households and individuals engaged in business activities on the platform.
- VAT and personal income tax obligations apply to transactions involving consumers in Vietnam and generating revenue in Vietnam.
- E-commerce platform operators must withhold tax by deducting a percentage from the revenue of each transaction.
- Applicable tax rates vary based on the type of transaction and residency status.
- Domestic e-commerce platform operators are assigned a unique tax identification number for tax declaration and payment.
- Foreign e-commerce platform operators must register and are also assigned a tax identification number to fulfill tax obligations in Vietnam.
Source: bdo.global
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.
