Do I have to pay tax when selling online?
According to Clause 1, Article 2 of Circular 40/2021/TT-BTC, individuals doing business through e-commerce platforms must pay taxes if their annual revenue exceeds 100 million VND. Tax obligations include:
Value Added Tax (VAT).
Personal income tax (PIT).
Note: If your revenue is less than 100 million VND/year, you do not have to pay tax but still need to declare fully.
How to determine tax payable
Tax calculation formula
Tax payable is calculated based on revenue and tax rate:
VAT = Revenue x 1%.
Personal income tax = Revenue x 0.5%.
For example:
Ms. Mai sells cosmetics on e-commerce platforms, with January revenue of 60 million VND.
VAT: 60 million x 1% = 600,000 VND.
Personal income tax: 60 million x 0.5% = 300,000 VND.
Total tax Ms. Mai has to pay: 900,000 VND.
Multi-industry business
If you do business in many fields, each industry applies a different tax rate.
For example:
Mr. Phong sells clothes (VAT 1%, PIT 0.5%) and provides delivery services (VAT 5%, PIT 2%). In January:
Clothing sales revenue: 100 million VND.
Delivery service revenue: 50 million VND.
Tax payable:
VAT: (100 million x 1%) + (50 million x 5%) = 3 million VND.
Personal income tax: (100 million x 0.5%) + (50 million x 2%) = 2 million VND.
Total tax: 5 million VND.
Notes when calculating taxes
Register for a tax code: This is a mandatory condition for valid tax filing.
Time to declare and pay taxes: Do it fully and on time to avoid penalties.
Support from e-commerce platforms: Some platforms support tax collection, helping to reduce procedures for sellers.
Knowing how to calculate your taxes correctly not only helps you comply with the law but also avoids unnecessary trouble. Calculate now to ensure you always pay correctly and fully.
