E-Commerce Platforms Required to Pay Taxes on Behalf of Sellers Starting 2025

From January 1, 2025, under the revised Tax Management Law, e-commerce platforms and digital platforms will be required to declare, deduct, and pay taxes on behalf of sellers using their platforms. This regulation applies to both domestic and international platforms, aiming to ensure fairness and prevent tax evasion in the digital economy.

Accordingly, e-commerce platforms like Shopee, Lazada, TikTok Shop, and digital platforms such as Facebook, Google, TikTok, and Netflix will have to declare and pay taxes on behalf of sellers. For sellers not eligible for tax deduction, they will need to register, declare, and pay taxes themselves. Detailed regulations on procedures, responsibilities, and documentation will be issued by the government.

This new requirement replaces the current system, where sellers on e-commerce platforms are responsible for self-declaration and payment of taxes, while platforms only provide information to tax authorities. The Ministry of Finance affirms that this aligns with international trends and enhances tax management effectiveness.

To date, approximately 102 foreign providers, including Meta (Facebook), Google, TikTok, and Netflix, have registered and paid taxes through the electronic tax portal since March 2022. The total accumulated tax paid has exceeded VND 18.6 trillion, along with VND 4.05 trillion in tax deductions paid on behalf of these providers. For domestic e-commerce platforms, tax collection began in early 2023, with Hanoi alone collecting VND 35 trillion as of early November.

Additionally, the revised law introduces administrative penalties for independent audit violations. Organizations may face fines of up to VND 2 billion, while individuals may be fined up to VND 1 billion, with a statute of limitations of five years. These penalties target serious violations of auditing standards that do not warrant criminal charges.

During discussions, some suggested reducing the statute of limitations to two years due to a shortage of auditing personnel. However, the National Assembly Standing Committee emphasized that the maximum fines would only apply to severe violations and urged the government to develop detailed guidelines to ensure transparency and enforceability.

These changes mark a significant step in tax management and oversight of digital economic activities, paving the way for a fair and transparent business environment.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.