Online Sales: Annual Revenue Threshold for Taxation
Article 1 of Circular 92/2015/TT-BTC stipulates:
Taxpayers as guided in Chapter I of this Circular are resident individuals, including individuals, groups of individuals, and households engaged in the production or business of goods and services in all sectors and trades as stipulated by law (hereinafter referred to as business individuals). The sectors and trades include the following cases:
a) Practicing independently in sectors and trades licensed or certified according to the provisions of the law.
b) Acting as an agent selling at the fixed price for lottery agents, insurance agents, and individuals engaged in multi-level sales who directly sign contracts with lottery companies, insurers, and multi-level sales enterprises.
c) Cooperating in business with organizations.
d) Producing and doing business in agriculture, forestry, salt production, aquaculture, and fishing that do not meet the tax exemption conditions as guided in point e, clause 1, Article 3 of Circular No. 111/2013/TT-BTC dated August 15, 2013, of the Ministry of Finance.
Taxpayers mentioned in clause 1 of this Article do not include business individuals with an annual revenue of 100 million VND or less.
Article 2 of Circular 302/2016/TT-BTC stipulates:
Taxpayers of the Business License Tax are organizations and individuals engaged in the production, business of goods, and services as stipulated in Article 2 of Decree No. 139/2016/ND-CP dated October 4, 2016, of the Government of Vietnam regulating the Business License Tax, except for the cases stipulated in Article 3 of Decree No. 139/2016/ND-CP dated October 4, 2016, of the Government of Vietnam regulating the Business License Tax and guided in Article 3 of this Circular.
Thus, online business operators are also subject to Personal Income Tax (PIT), Value Added Tax (VAT), and Business License Tax, but must have an annual sales revenue of 100 million VND or more.
Therefore, if you are engaged in online business but have an annual revenue of 70 to 75 million VND (less than 100 million VND), you are not subject to tax.
Respectfully!
