Implementing Decree 117/2025/ND-CP on tax management in e-commerce business, in order to support taxpayers who are households, individuals and business organizations on e-commerce platforms to fully fulfill their tax obligations in accordance with regulations, the Tax Department has issued a handbook to guide e-commerce platform management organizations, domestic digital platform management organizations and organizations with other digital economic activities to deduct and pay on behalf.
Accordingly, the Tax Department clearly states that the subjects of deduction are households, individuals residing and individuals not residing with business activities on e-commerce platforms. In which, residential individuals and non-resident individuals are determined according to the provisions of the law on personal income tax. The criteria for determining the residential status of a business individual are as follows:
The individual residents are those who meet one of the following conditions:
- Be present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first date of presence in Vietnam;
- Have a permanent residence in Vietnam, including a permanent residence registration or a rental house to live in Vietnam under a term lease contract.
On the other hand, a non-resident individual is one who does not meet the above conditions.
The types of taxes deducted are also clearly stated in the handbook.
The first is value-added tax (VAT), for each transaction providing goods and services that generate domestic revenue on the e-commerce platform. The amount of value added tax that must be deducted is determined according to the percentage (%) on the revenue of each transaction of selling goods and providing services.
Second is personal income tax (PIT), for each transaction of providing goods and services generating domestic and foreign revenue on the e-commerce platform of a residential individual and for each transaction of providing goods and services generating domestic revenue on the e-commerce platform of a non-resident individual. The amount of personal income tax that must be deducted is determined according to the percentage (%) on the revenue of each transaction of selling goods and providing services.
In which, the revenue from the sale of goods and services is the amount of goods and services sold by households and individuals that the e-commerce platform management organization collects.
In order to specify the percentage of household and individual revenue that business individuals need to pay, the Tax Department gave an example:
The seller of goods sold on E-commerce platform X has the following information:
- Commodity price (listed on the platform): 1,000
- Depreciation floor for buyers (Degree reduction voucher of the floor): 40
- Selling person discounted for buyer (selling person discount voucher): 20
- Transportation fee reduction platform for buyers: 10
- Buyer's transportation fee: 30
- Selling fee: 50
Buyers must pay = Commodity price + Buyer's shipping fee - Deposit rate for buyers - Selling price for buyers - Transportation fee for buyers
From the above example, buyers must pay = 1,000 + 30 - 40 - 20 - 10 = 960.
Quotation for goods received by sellers = Commodity price - Selling price reduced for buyers - Selling fee is paid
From the above example, the seller receives = 1,000 - 20 - 50 = 930
Tax deductible revenue = Commodity price - Selling price reduced for buyers
Tax deductible revenue = 1,000 - 20 = 980
