ecommerce

Infographic - foreign e-commerce platform and the new draft Decree on tax in VN

VN Taxes

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Infographic - foreign e-commerce platform and the new draft Decree on tax in VN
Photo by Karsten Winegeart / Unsplash
VIETNAM E-COMMERCE TAX REGULATIONS Implications for Foreign Platforms with Payment Function KEY REGULATORY FRAMEWORK Law 56/2024/QH15 • Expanded digital tax scope • MANDATORY tax registration • No longer optional • Enhanced enforcement Circular 80/2021/TT-BTC • Registration portal • Direct VAT declaration • Quarterly tax filings • Payment mechanisms New Draft Decree • Effective April 1, 2025 • Mandatory withholding for all individual sellers (VN & foreign) • Electronic certificates DIRECT OBLIGATIONS Tax Registration • Obtain 10-digit Vietnamese tax code • Direct tax declaration on platform income Withholding Requirements • VAT: 1-5% depending on transaction type • PIT: 0.5-5% based on residency status Monthly Reporting • Detailed transaction records • Standardized forms (01/CNKD-TMĐT) IMPLEMENTATION CHALLENGES Seller Identification • Verify residence status of sellers Transaction Classification • Goods vs. services vs. transportation • Default to highest rate when unclear System Integration • Tax calculation modules • Electronic withholding certificates TAX RATES TABLE FOR INDIVIDUAL SELLERS (To be withheld by platform) Transaction Type VAT Rate PIT (Resident) PIT (Non-Resident) Goods 1% 0.5% 1% Services 5% 2% 5% Transport/Mixed 3% 1.5% 2% STRATEGIC CONSIDERATIONS Full Compliance Business Model Restructuring Market Exit Evaluation Effective Date: April 1, 2025 | Prepared for Foreign E-commerce Platform Operators with Payment Function

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