From 2025, individuals doing business and selling online need to pay special attention to the new tax regulations recently passed by the National Assembly, to ensure compliance with the law and optimize business operations.
E-commerce platforms pay taxes on behalf of online sellers:
According to the Law amending a number of articles of the Law on Tax Administration, from January 1, 2025, e-commerce platforms and digital platforms will be responsible for deducting, declaring and paying taxes on behalf of sellers operating on their platforms. This means that platforms such as Shopee, Lazada, and Tiki will fulfill tax obligations on behalf of sellers, helping to simplify the tax payment process for individual businesses.
Value Added Tax (VAT) turnover threshold raised:
From July 1, 2025, according to the Law on Value Added Tax (amended), business households and individuals with annual revenue of VND 200 million or less will not be subject to VAT. This threshold is raised from VND 100 million to VND 200 million, helping to reduce the tax burden for small business individuals.
Regulations on promotions and livestream sales:
From December 1, 2024, the maximum discount in promotional programs will be adjusted more flexibly, with some cases allowing discounts of up to 100%. In addition, from December 25, 2024, social media users must authenticate their personal identification number when livestreaming to sell products or share information online, in order to better manage online transactions and limit fraud.
Continue to reduce VAT by 2% until the end of June 2025:
The National Assembly has agreed to continue reducing VAT by 2% in the first half of 2025, to support businesses and people in the context of many economic challenges.
These changes directly affect online business operations. Therefore, online sellers need to update information and comply with new regulations to ensure business operations run smoothly and legally.
