Platforms to help online sellers pay taxes from July 1

Platforms to help online sellers pay taxes from July 1

Economic experts described this as a major shift in tax administration aimed at enhancing the efficiency of tax collection from the fast-growing online business sector, which still faces gaps in data transparency and tax declaration compliance.

Starting July 1, e-market places will officially begin withholding and paying value-added tax (VAT) and personal income tax (PIT) on behalf of individual sellers using their platforms. — VNA/VNS Photo

Starting July 1, e-market places such as Shopee, Lazada, Tiki, and TikTok Shop will officially begin withholding and paying value-added tax (VAT) and personal income tax (PIT) on behalf of individual sellers using their platforms, as in accordance with the Government's Decree No. 117/2025/ND-CP.

Economic experts described this as a major shift in tax administration aimed at enhancing the efficiency of tax collection from the fast-growing online business sector, which still faces gaps in data transparency and tax declaration compliance.

Mai Sơn, deputy director of the Department of Taxation under the Ministry of Finance (MoF), said under Decree 117, e-commerce platforms with payment functions are required to withhold, declare, and pay taxes on behalf of business individuals and households. While sellers must still issue invoices to customers, they will no longer need to declare or pay taxes on the revenue already withheld and paid for by the platform.

If a seller authorises the platform to issue invoices, the e-commerce platform will be responsible for doing so in accordance with the regulations.

The amount of VAT and PIT to be withheld will be calculated as a percentage of the revenue from each sale of goods or services.

Experts believe that assigning e-marketplaces to handle tax withholding and payment simplifies tax obligations for sellers and improves tax management in the digital economy. It also helps level the playing field for traditional businesses, which were already required to fully declare and pay taxes.

MoF data shows that in the first five months of this year, tax revenue from organisations and individuals engaging in e-commerce and other digital business activities reached VNĐ74.4 trillion (US$2.85 billion), a 55 per cent surge compared to the same period in 2024.

Among these, 158 foreign providers registered, declared, and paid taxes through the electronic tax portal, contributing VNĐ5.7 trillion in the first five months, up 41 per cent year-on-year. 

During the period, 100,000 business households and individuals registered, declared, and paid nearly VNĐ1.1 trillion in taxes via the portal for household and individual taxpayers. Meanwhile, nearly 93,000 organisations and individuals involved in e-commerce contributed VNĐ67.6 trillion in tax revenue. 

Bizhub