Starting 1 July 2025, Vietnam requires e-commerce platforms to withhold and pay taxes on behalf of sellers. 

The Vietnamese Government issued Decree No. 117/2025/ND-CP on 9 June 2025, introducing new regulations to manage tax obligations for households and individuals conducting business on e-commerce and digital platforms on 11 June 2025.

Key points of the decree include:

• Who is affected:
  • E-commerce platform managers and digital platform operators with payment functions (both domestic and foreign).
  • Resident and non-resident households and individuals selling goods or services on these platforms.
  • Tax authorities and related stakeholders.
• Tax withholding responsibilities:
  Platform operators must withhold and remit value-added tax (VAT) and personal income tax (PIT) on behalf of sellers for each transaction conducted via their platforms. This applies to both domestic and cross-border sales.
• Tax rates:
  • VAT:
    • Goods: 1%
    • Services: 5%
    • Transport and services related to goods: 3%
  • PIT for resident individuals:
    • Goods: 0.5%
    • Services: 2%
    • Transport and related services: 1.5%
  • PIT for non-resident individuals:
    • Goods: 1%
    • Services: 5%
    • Transport and related services: 2%
• Timing:
  Tax must be withheld immediately upon confirmation of successful transactions and payment acceptance.
• Reporting:
  Platform managers declare and remit withheld taxes monthly, adjusting for cancelled or returned transactions.
• Seller obligations:
  Sellers must provide accurate tax identification and personal data to platforms and are responsible for other applicable taxes such as special consumption and environmental taxes.
• Exemptions:
  Sellers whose taxes are withheld and paid by platforms are exempt from declaring and paying VAT and PIT for those platform transactions.

This decree takes effect from 1 July 2025.