HCMC – E-commerce and digital platforms will be required to withhold, declare and pay value-added tax (VAT), personal income tax, and other relevant taxes on behalf of individual and household sellers on their platforms, with effect from July 1.
The requirement is based on the amended Law on Tax Administration, approved by the National Assembly in November 2024, which mandates platforms to handle tax obligations for sellers, according to the Government news portal.
The Government recently issued Decree 117/2025/ND-CP on tax administration for household and individual businesses operating on e-commerce platforms and digital platforms.
The decree, which takes effect on July 1, later than the initially planned April 1, aims to clarify several provisions of the amended Law on Tax Administration passed in November 2024.
Specifically, e-commerce and digital platforms will be required to withhold and pay value-added tax (VAT) and personal income tax on behalf of individual and household sellers, including both domestic and foreign residents.
The taxes will be deducted once an order is confirmed and payment is completed. Tax rates are based on a percentage of revenue: 1% for goods, 5% for services, and 3% for transportation and bundled service-goods transactions.
Personal income tax for domestic residents is applied at a rate of 0.5% for goods, 2% for services, and 1.5% for transportation and bundled service-goods transactions. For non-resident individuals, the respective rates are 1%, 5%, and 2%.
If a transaction cannot be clearly identified as a sale of goods or services, platforms must apply the highest applicable tax rate and report the tax on a monthly basis. For canceled or refunded transactions, platforms are required to offset the previously paid tax on behalf of the seller.
According to the Tax Department, organizations and individuals doing business on e-commerce and digital platforms paid VND74.4 trillion in taxes in the first five months of the year, up 55% compared to the same period last year.
Tax authorities reviewed 164,661 taxpayers and collected an additional VND747 billion in back taxes, including over VND416 billion from businesses and more than VND331 billion from 25,201 household and individual sellers.
