From April 1, 2025, are e-commerce platforms required to pay taxes on behalf of sellers in Vietnam?

From April 1, 2025, are e-commerce platforms required to pay taxes on behalf of sellers in Vietnam?

Based on Clause 5, Article 6 of the Law Amending and Supplementing the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Management and Use of Public Assets Law, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Law on Handling of Administrative Violations (referred to as the Law amending 9 Laws No. 56/2024/QH15) as follows:

5. Amend and supplement several articles of the Tax Administration Law

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4. Amend and supplement Clause 2, Article 17 as follows:

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b) Add Clause 4a after Clause 4 as follows:

"4a. For households and individuals engaging in business activities on e-commerce platforms and digital platforms, organizations managing e-commerce trading floors and digital platforms with a payment function (including both domestic and foreign organizations) and other organizations engaging in digital economic activities as stipulated by the Government of Vietnam are required to withhold, pay taxes on behalf of, and declare taxes deducted for business households and individuals. In the case where households and individuals engaging in business activities on e-commerce platforms and digital platforms are not subject to tax withholding and payment on their behalf, they are obligated to directly perform taxpayer registration, tax declaration, and tax payment.

The Government of Vietnam provides detailed regulations on the scope of responsibility and methods for organizations managing e-commerce trading floors, managing digital platforms, and other organizations engaging in digital economic activities to perform tax withholding, tax payment on behalf, and declaration of taxes deducted for business transactions on e-commerce platforms and digital platforms of households and individuals; on documents, procedures for tax declaration, payment, and refund for households and individuals engaging in business activities on e-commerce platforms and digital platforms."

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According to the above regulations, organizations managing e-commerce trading floors are required to withhold, pay taxes on behalf of, and declare taxes deducted for business households and individuals engaging in business activities on e-commerce platforms.

Additionally, Clause 5, Article 10 of the Law amending 9 Laws No. 56/2024/QH15 provides for the effective date as follows:

Effective Date

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4. The provisions of Article 4 of this Law shall be effective from the fiscal year 2025.

5. The provisions at Point b, Clause 5, Article 6 of this Law shall be effective from April 1, 2025.

Thus, from April 1, 2025, organizations managing e-commerce trading floors are responsible for withholding and paying taxes on behalf of business households and individuals who are sellers on e-commerce platforms.

Furthermore, in cases where business households and individuals engaging in business activities on e-commerce platforms and digital platforms are not subject to tax withholding and payment on their behalf, they are obligated to directly perform taxpayer registration, tax declaration, and tax payment.

From April 1, 2025, are e-commerce platforms required to pay taxes on behalf of sellers in Vietnam? (Image from the Internet)

What are the regulations on the location and method of tax payment in Vietnam?

According to Article 56 of the Tax Administration Law 2019, the regulations on the location and method of tax payment are as follows:

- Taxpayers shall pay taxes into the state budget according to the following regulations:

+ At the State Treasury;

+ At the tax administration agency where the tax declaration dossier is received;

+ Through organizations authorized by the tax administration agency to collect taxes;

+ Through commercial banks, other credit institutions, and service organizations in accordance with the law.

- The State Treasury, commercial banks, other credit institutions, and service organizations in accordance with the law are responsible for arranging locations, facilities, officials, and staff to collect taxes, ensuring convenience for taxpayers to promptly pay taxes into the state budget.

- Agencies and organizations receiving tax payments or withholding taxes must issue tax payment receipts to taxpayers.

- Within 08 working hours from the time of collecting tax from the taxpayer, the agency or organization receiving tax payments must transfer the money into the state budget. In cases of tax collection in cash in remote areas, islands, or areas with difficult access, the time limit for transferring tax money into the state budget shall be in accordance with regulations by the Minister of Finance.

What is the currency used for tax declaration and payment in Vietnam?

According to Clause 1, Article 7 of the Tax Administration Law 2019, regulations on the currency for tax declaration and payment are as follows:

Currency for Tax Declaration and Payment

1. The currency for tax declaration and payment is the Vietnamese Dong, except for cases where tax declaration and payment are permitted in freely convertible foreign currencies.

2. Taxpayers who account using foreign currency as per the Accounting Law must convert it to Vietnamese Dong at the actual exchange rate at the time the transaction arises.

3. For import and export goods, the currency for tax payment is the Vietnamese Dong, except for cases where tax declaration and payment are permitted in freely convertible foreign currencies. The tax calculation exchange rate is implemented according to the provisions of the customs law.

4. The Minister of Finance provides regulations on the currency for tax declaration, payment in freely convertible foreign currencies stipulated in Clause 1, Clause 3, and the actual exchange rate stipulated in Clause 2 of this Article.

Thus, the currency for tax declaration and payment is the Vietnamese Dong, except in cases where tax declaration and payment are permitted in freely convertible foreign currencies.