The Tax Department clearly stipulates the deduction tax rate in the first handbook of organizing the management of e-commerce trading floors for business activities on e-commerce platforms to help households and individuals do business easily grasp and comply with regulations.
First, the rate of value-added tax (VAT) deduction is as follows:
- Goods: 1%
- Service: 5%
- Transportation and services associated with goods: 3%
In case the household or individual cannot determine whether the transaction generating revenue is goods or services or the type of service, the VAT deduction will be at the highest tax rate of 5%.
Second, the percentage of personal income tax (PIT) deducted for residential individuals:
- Goods: 0.5%
- Service: 2%
- Transportation and services associated with goods: 1.5%
In case the household or individual cannot determine whether the transaction generating revenue is goods or services or the type of service, the personal income tax deduction will be at the highest tax rate of 2%.
For non-resident individuals, the rate of personal income tax deduction is as follows:
- Goods: 1%
- Service: 5%
- Transportation and services associated with goods: 2%
In case the household or individual cannot determine whether the transaction generating revenue is goods or services or the type of service, the personal income tax deduction will be at the highest tax rate of 5%.
Regarding the time of tax deduction, the deduction organization will deduct taxes from households and individuals doing business immediately upon successful confirmation of the order and acceptance of payment for transactions of selling goods and services on e-commerce platforms.
The Tax Department also noted that the e-commerce platform with payment function is a platform established for sellers and buyers to make sales contracts, provide services and buyers to pay the seller directly on the platform through electronic wallet payment methods, bank cards or payment, transfer via payment account, integrated transfer system, cash payment upon receipt (Cach On Delivery delivery) and other means according to the provisions of law.
