What is E-commerce Tax? Is it required to pay taxes when doing business on an e-commerce trading floor in Vietnam?

What is E-commerce Tax in Vietnam?

According to Clause 1, Article 3 of the Law on Tax Administration 2019, tax is defined as a compulsory amount payable to the state budget by organizations, households, household businesses, and individuals in accordance with tax laws.

E-commerce tax can be understood as a compulsory amount payable to the state budget for individuals and organizations conducting business activities on e-commerce trading floors.

What is E-commerce Tax? Is it required to pay taxes when doing business on an e-commerce trading floor in Vietnam? (Image from the Internet)

What is an e-commerce trading floor in Vietnam?

An e-commerce trading floor is defined in Clause 9, Article 3 of Decree 52/2013/ND-CP as an e-commerce website that allows merchants, organizations, and individuals who are not the website owners to carry out all or part of the process of buying and selling goods and services.

Note: E-commerce trading floors in Decree 52/2013/ND-CP do not include online stock trading websites.

Key points:

- E-commerce activities involve carrying out all or part of the commercial process using electronic means connected to the Internet, mobile telecommunications networks, or other open networks.

- An e-commerce website (hereinafter referred to as the website) is an electronic information page set up to serve all or part of the process of purchasing goods or providing services, from displaying goods and services, entering into contracts, providing services, making payments, and after-sales services.

Is it required to pay taxes when doing business on an e-commerce trading floor in Vietnam?

An e-commerce trading floor is an e-commerce website that allows merchants, organizations, and individuals who are not the website owners to carry out all or part of the process of buying and selling goods and services. (Clause 9, Article 3 of Decree 52/2013/ND-CP)

The responsibilities of sellers on e-commerce trading floors are stipulated in Article 37 of Decree 52/2013/ND-CP as follows:

Responsibilities of sellers on e-commerce trading floors

1. Provide accurate and complete information as required in Article 29 of this Decree to the merchant or organization providing the e-commerce trading floor service when registering to use the service.

2. Provide complete information about goods and services in accordance with Articles 30 to 34 of this Decree when selling goods or providing services on the e-commerce trading floor.

3. Ensure the accuracy and truthfulness of information about the goods and services provided on the e-commerce trading floor.

4. Comply with the provisions of Section 2, Chapter II of this Decree when utilizing the online ordering functions of the e-commerce trading floor.

5. Provide information about their business activities upon request by competent state agencies to support e-commerce statistics operations.

6. Comply with laws on payments, advertising, promotions, intellectual property rights protection, consumer rights protection, and other relevant legal regulations when selling goods or providing services on the e-commerce trading floor.

7. Fulfill all tax obligations as required by law.

Sellers on e-commerce trading floors must fulfill all tax obligations as required by law.

What responsibilities do businesses and individuals engaging in e-commerce have?

Pursuant to Article 17 of the Law on Tax Administration 2019 and guided by Official Dispatch 3723/CTCTH-TTHT in 2024, taxpayers, including businesses and individuals engaged in e-commerce, have the following responsibilities:

- Accurately, truthfully, and fully declare taxes, and submit tax returns on time; be accountable for the accuracy, truthfulness, and completeness of tax returns.

- Pay taxes, late payment interest, and fines fully, on time, and at the correct locations.

- Comply with accounting, statistical policies, and manage and use invoices and documents as prescribed by law.

- Record accurately, truthfully, and fully any activities that incur tax obligations, tax deductions, and transactions that must be reported for tax information.

- Prepare and provide invoices and documents to buyers according to the correct quantity, type, and actual payment value when selling goods or providing services as prescribed by law.

See details of Official Dispatch 3723/CTCTH-TTHT in 2024: Download