Decree No. 117/2025/ND-CP on tax administration for e-commerce and digital platform-based business activities of household businesses and individual businesses

DECREE

ON TAX ADMINISTRATION FOR E-COMMERCE AND DIGITAL PLATFORM-BASED BUSINESS ACTIVITIES OF HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESSES

Pursuant to the Law on Government Organization dated February 18, 2025;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law amending some articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, the Law on Penalties for Administrative Violations dated November 29, 2024;

Pursuant to the Law on Value-added tax dated June 3, 2008 and the Laws amending the Law on Value-added tax dated June 3, 2008; Law on Value-added tax dated November 29, 2024;

Pursuant to the Law on Personal income tax dated November 21, 2007; Law amending the Law on Personal income tax dated November 22, 2012;

At the request of  the Minister of Finance;

The Government issues a Decree on tax administration for e-commerce and digital platform-based business activities of household businesses and individual businesses

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree provides for:

1. Responsibility for deduction and payment of value-added tax (VAT) and personal income tax (PIT) on behalf of household businesses and individual businesses (hereinafter referred to as “sellers”) by domestic and foreign organizations operating e-commerce exchanges (hereinafter referred to as “e-commerce  platform operators”), organizations operating digital platforms with payment features (hereinafter referred to as “payment-enabled digital platform operators”) and other organizations performing digital business activities.

2. Methods for e-commerce  platform operators, payment-enabled digital platform operators, other organizations performing digital business activities to deduct, pay, and declare the deducted tax on transactions conducted on such e-commerce platforms or digital platforms on behalf of sellers.

3. Documentation and procedures for tax declaration, payment and refund for sellers on e-commerce or digital platforms.

Article 2. Regulated entities

1. E-commerce  platform operators, payment-enabled digital platform operators and other organizations performing digital business activities that have the responsibilities to deduct and pay tax on behalf of sellers.

2. Resident sellers and non-resident individuals that do business on e-commerce or digital platforms.

3. Tax authorities and relevant organizations and individuals.

Article 3. Term interpretation

For the purpose of Decree, the following terms shall be construed as follows:

1. An e-commerce  platform operator or payment-enabled digital platform operator is the operator of a platform established for buyers to pay directly through payment methods such as e-wallets, bank cards or payments, transfers via checking accounts, integrated transfer systems, cash on delivery (COD), and other payment methods as prescribed by law.

2. Other organizations performing digital business activities are organizations in Vietnam that, on behalf of an e-commerce or digital platform provider abroad, makes income payments to sellers from digital information content products and services in accordance with the law on information technology.

E-commerce  platform operators, payment-enabled digital platform operators and other organizations performing digital business activities specified in clause 1 and clause 2 of this Article shall hereinafter be referred to as e-commerce platform operators.

3. E-commerce platforms referred in this Decree include e-commerce platforms and digital platforms.

4. Individuals that are residents and non-residents shall comply with laws on personal income tax.

Chapter II

RESPONSIBILITY AND METHODS FOR E-COMMERCE PLATFORM OPERATORS TO DEDUCT, PAY AND DECLARE DEDUCTED TAX ON BEHALF OF SELLERS

Article 4. Deduction and payment of tax on behalf of sellers

1. Domestic and foreign e-commerce platform operators that are obliged to deduct and pay taxes on behalf of sellers (including owners who directly operate e-commerce platforms or persons authorized to operate e-commerce platforms) shall carry out such deduction and payment in accordance with the law on VAT for each domestic transaction generating revenue by sellers on e-commerce platforms.

2. Domestic and foreign e-commerce platform operators that are obliged to deduct and pay taxes on behalf of sellers (including owners who directly operate e-commerce platforms or persons authorized to operate e-commerce platforms) shall (i) deduct and pay tax on behalf of household/individual businesses that are residents in accordance with law on PIT for each domestic and foreign transaction generating revenue by individuals that are residents doing business on e-commerce platforms; (ii) deduct and pay tax on behalf of household/individual businesses that are non-residents in accordance with law on PIT for each domestic transaction generating revenue by individuals that are residents doing business on e-commerce platforms;

Article 5. Time of tax deduction and determination of tax amount to be deducted

1. Time of tax deduction: e-commerce platform operators specified in Article 4 hereof shall deduct and pay VAT and PIT for each sale of goods/services generating revenue on the e-commerce platform under their management immediately upon confirming successful transactions and accepting payment for sales of goods and/or services on their e-commerce platform on behalf of the sellers.

2. The amount of VAT and PIT to be deducted is determined by a percentage (%) of the revenue from each sale of goods/services.

a) The percentage (%) for calculating VAT is determined in accordance with the VAT Law. To be specific:

a.1) Goods: 1%

a.2) Services: 5%

a.3) Transport, services associated with goods: 3%

b) The percentage (%) for calculating PIT is determined in accordance with the PIT Law. To be specific:

b.1) For individuals who are residents

b.1.1) Goods: 0,5%

b.1.2) Services: 2%

b.1.3) Transport, services associated with goods: 1,5%

b.2) For individuals who are non-residents

b.2.1) Goods: 1%

b.2.2) Services: 5 %

b.2.3) Transport, services associated with goods: 2%

c) If e-commerce platform operators that are obliged to deduct and pay tax on behalf of sellers cannot determine which type of service generate a specific revenue, tax shall be deducted at the highest percentage (%) specified in point a of this clause and the highest percentage (%) for services specified for residents or non-residents specified in point b of this clause.

d) The revenue from each sale of goods/services is the amount received by seller for the sale of goods or services that the e-commerce platform operator collects on the seller’s behalf.

Article 6. Method for declaring and paying deducted tax

1. E-commerce platform operators shall declare the deducted tax on a monthly basis.

For transactions that are canceled or involve returned goods, the organization shall offset the tax amounts that are deducted and paid on the canceled or returned orders against the deducted tax on sales of goods and/or services paid on behalf of the same sellers.

The tax paid by e-commerce platform operators on behalf of sellers shall be determined by the total tax amounts on sales of goods and/or services by such sellers after offsetting the total tax amount on canceled or returned orders.

Each domestic e-commerce platform operators is assigned a unique tax identification number (10-digit TIN) by the tax authority to declare and pay the deducted tax, without having to carry out taxpayer registration.

Each foreign e-commerce platform operators is also assigned a 10-digit TIN to fulfill tax obligations in Vietnam, as prescribed for foreign suppliers in Circular No. 80/2021/TT-BTC dated September 29, 2021, by the Minister of Finance and mat use this number to declare and pay the deducted tax on behalf of sellers who are residents doing business on e-commerce platforms abroad.

2. A dossier on deducted tax declaration include:

a) Tax deduction declaration for sellers on e-commerce platforms using Form No. 01/CNKD-TMDT attached hereto;

b) Detailed list of deducted tax amounts of sellers on e-commerce platforms using Form No. 01-1/BK-CNKD-TMDT attached hereto.

3. Locations and deadlines for submission of tax declaration and payment of the deducted tax:

a) E-commerce platform operators shall submit tax declaration electronically. The receiving agency is the tax authority managing the e-commerce platform operator.

b) The organizations specified in Article 4 hereof shall prepare a detailed list of tax amounts paid using Form No. 01/BKNT-TMDT attached hereto and send it to the tax authority after completing such payment to the state budget. The deadline for preparation and submission such list and tax payment shall comply with law on tax administration.

c) The location and deadline for submitting tax declarations and the location, form and deadline for tax payment shall comply with law on tax administration.

Article 7. Responsibilities of e-commerce platform operators that are obliged to deduct and pay tax on behalf of household businesses and individual businesses

1. Apply for use, handling of tax deduction proofs for business activities on e-commerce platforms in accordance with the law on invoices and records.

2. Issue tax deduction proofs for business activities on e-commerce platforms using Form No. 01/CTKT-TMDT attached hereto annually to sellers in electronic form.

3. Manage the usernames and passwords of the accounts provided by tax authorities; store transaction data, information, and documents related to the determination of the tax payable and the deducted tax of sellers in accordance with the law on tax administration.

4. Carry out tax deductions, accurately and fully declare and pay the deducted tax based on the information provided by sellers and in accordance herewith; be accountable to the law for the accuracy, honesty, and completeness of tax dossiers.

If e-commerce platform operators that are obliged to deduct and pay tax on behalf of sellers already deducted and paid tax for such sellers to tax authorities in accordance herewith, they do not have to provide information of such sellers as prescribed in Decree No. 91/2022/ND-CP dated October 30, 2022, by the Government, amending Decree No. 126/2020/ND-CP dated October 19, 2020, by the Government elaborating the Law on Tax administration.

5. Provide other information regarding business activities on e-commerce platforms as requested by the tax authorities in accordance with law on tax administration.

6. Promptly and fully refund the deducted tax amounts that have been paid on behalf of sellers for canceled or returned orders.

Chapter III

DOCUMENTATION AND PROCEDURES FOR TAX DECLARATION, PAYMENT AND REFUND FOR SELLERS ON E-COMMERCE PLATFORMS

Article 8. Documentation and procedures for tax declaration and payment for sellers who are residents doing business on e-commerce platforms without payment features

1. Sellers who are residents doing business on e-commerce platforms without payment features shall directly pay VAT, PIT, excise tax, environmental protection tax, natural resource tax, and other payable amounts to the state budget collected by tax authorities in accordance with tax laws and relevant laws, declare and pay taxes electronically.

2. Tax declaration

a) Sellers on e-commerce platforms shall declare tax monthly.

b) Sellers that do not do business regularly on e-commerce platforms shall declare tax by each occurrence.

3. Procedures for taxpayer registration, tax declaration, tax payment

a) Tax declaration dossier

Tax declaration for sellers on e-commerce platforms using Form No. 02/CNKD-TMDT attached hereto..

b) Taxpayer registration procedures, tax declaration dossier submission deadlines, and tax payment procedures are carried out in accordance with law on tax administration.

c) The receiving authority is the tax authority managing the area where the seller resides (current residence/temporary residence/permanent residence).

Article 9. Documentation and procedures for tax declaration and payment for individuals who are non-residents doing business on e-commerce platforms without payment features

1. Individuals who are non-residents doing business on e-commerce platforms without payment features shall directly pay VAT, PIT on goods and/or services sold and provided on e-commerce platforms by the percentage (%) of the revenue in accordance with the VAT Law and the PIT Law.

2. The percentage (%) for calculating VAT and  PIT is determined in accordance with the VAT Law and PIT Law. To be specific:

a) The percentage (%) for calculating VAT

a.1) Goods: 1%

a.2) Services: 5%

a.3) Transport, services associated with goods: 3%

b) The percentage (%) for calculating PIT

b.1) Goods: 1%

b.2) Services: 5%

b.3) Transport, services associated with goods: 2%

3. Tax declaration

a) Non-resident individuals falling under clause 1 of this Article must declare VAT for domestic sales of good, service provision on e-commerce platforms, PIT, and pay taxes to the E-commerce Tax Sub-Department for each occurrence through electronic means.

b) Non-resident individuals doing business on e-commerce platforms without payment capabilities must carry out electronic tax transaction registration, first-time taxpayer registration using tax declaration dossiers.

4. Procedures for tax declaration and payment

a) Tax declaration dossier: Tax declaration for sellers who are non-residents on e-commerce platforms using Form No. 03/CNKD-TMDT attached hereto.

b) The deadline for submitting tax declaration dossier and tax payment shall comply with the law on tax administration.

Article 10. Documentation and procedures for tax refund

1. For households/individuals whose VAT and PIT have been deducted and paid on their behalf by the organization specified in Article 4 hereof for transactions arising in the year but whose annual revenue from all business activities is not subject to VAT and PIT, the tax refund procedure shall be carried out in accordance with the law on tax administration after the e-commerce platform operator has completed the obligation to declare and pay deducted tax on behalf of the sellers on its e-commerce platforms in the tax year.

2. In cases where sellers have paid VAT and PIT for transactions occurring within the year in accordance with Article 8 and Article 9 hereof but their annual revenue is not subject to VAT and PIT, they shall carry out the tax refund procedures in accordance with the law on tax administration.

3. Application for tax refund: Application form for tax refund for sellers on e-commerce platforms using Form No. 03/CNKD-TMDT attached hereto.

4. The receiving authority is the tax authority managing the area where the seller resides (current residence/temporary residence/permanent residence).

Chapter IV

IMPLEMENTATION AND IMPLEMENTATION CLAUSES

Article 11. Responsibilities of sellers on e-commerce platforms .

1. Resident Sellers on e-commerce platforms shall declare and pay excise tax, environmental protection tax, natural resource tax, and other payable amounts to the state budget in accordance with tax laws, law on tax administration, and other relevant laws.

2. Sellers on e-commerce platforms are obligated to provide accurate and complete information about their TIN or ID number (for Vietnamese citizens); passport numbers or identification information issued by foreign competent authorities (for foreign citizens); and other information that must be provided by sellers as prescribed by e-commerce laws to the e-commerce platform operators.

3. They must promptly provide accurate and complete information and documents related to the determination of tax obligations to the e-commerce platform operators that obliged to deduct and pay tax on their behalf, and fulfill tax obligations as specified herein.

4. Sellers whose VAT and PIT have been deducted, declared and paid on their behalf by the e-commerce platform operators do not have to declare and pay such tax.

Article 12. Responsibility for implementation

1. Ministers and heads of ministerial agencies, within their jurisdiction, are responsible for implementing this Decree.

2. The Ministry of Finance shall provide guidance and organize the implementation of solutions to support e-commerce platform operators that are obliged to deduct and pay tax on behalf of sellers in accordance with this Decree.

3. The Ministry of Industry and Trade shall implement solutions to manage all e-commerce business activities and cooperate with the Ministry of Finance in implementing solutions to support e-commerce platform operators that are obliged to deduct and pay tax on behalf of sellers in accordance with this Decree.

4. The Director of the Department of Taxation shall provide guidance on the reception, inspection, and comparison of data to automatically settle tax refunds on the information technology system of tax sector for tax refund dossiers of sellers on e-commerce platforms in accordance with the law on tax administration; provide information on deducted tax paid by the e-commerce platform operators on behalf of sellers through the taxpayer’s electronic tax account; supports sellers in using ID numbers instead of TINs when TINs have been integrated into ID numbers.

5. Presidents of the People’s Committees of provinces and centrally affiliated cities shall direct the local agencies and units to cooperate in implementing this Decree.

Article 13. Effect

This Decree comes into force from June 01, 2025.

If the legislative documents cited in this Circular are amended or replaced, the newer documents shall apply./.