Current E-Commerce Tax Rates in Vietnam and New Policies in 2025

With the booming online business landscape, understanding the Vietnam e-commerce tax rate is crucial for household businesses and individuals to remain compliant. Below is a detailed summary based on Circular 40/2021/TT-BTC and key changes effective from 2025.

1. E-Commerce Tax Rates Under Circular 40/2021/TT-BTC

Taxable Revenue

Taxable revenue includes all income household businesses and individuals receive from selling goods or providing services, such as:

• Sales revenue, processing fees, commissions, service fees.
• Bonuses, discounts, subsidies, surcharges, or compensation for contract breaches.

Note: Taxable revenue is counted regardless of whether payment has been received or not.

Applicable Tax Rates

According to Appendix I of Circular 40/2021/TT-BTC, the rates for household businesses selling via e-commerce platforms are:

• VAT: 1% of revenue.
• PIT: 0.5% of revenue.
  ➡️ Total tax payable: 1.5% of revenue.

Tax Calculation Formula

• VAT payable = Taxable revenue × 1%.
• PIT payable = Taxable revenue × 0.5%.

2. New E-Commerce Tax Policies from 2025

The amended Law on Tax Administration, effective April 1, 2025, introduces significant changes.

2.1. E-Commerce Platforms to Withhold and Pay Taxes from July 1, 2025

Under Decree 117/2025/ND-CP, platforms such as Shopee, Lazada, TikTok Shop, Tiki must withhold and remit taxes on behalf of online sellers:

• Goods: VAT 1%, PIT 0.5%.
• Services: VAT 5%, PIT 2%.
• Transportation: VAT 3%, PIT 1.5%.
• If the nature of the transaction cannot be determined, the highest tax rate applies.
• For non-resident individuals, PIT rates are 1%, 5%, and 2% respectively.

Taxes will be withheld once the transaction is completed and the buyer makes payment. Platforms must declare and remit taxes monthly. Refunds or returns can be offset in the next tax period.

Sellers do not need to declare VAT and PIT if the platform has already paid on their behalf. However, they must still provide identification (ID/Passport/Tax ID). Sellers remain liable for other taxes, such as excise tax or environmental tax, if applicable.

2.2. Foreign E-Commerce Platforms Must Register and Declare Taxes in Vietnam

Currently, under the 2019 Law on Tax Administration, only foreign e-commerce providers without a permanent establishment in Vietnam are required to register and declare taxes.

However, starting January 1, 2025, under Law No. 56/2024/QH15:

 All foreign e-commerce platforms must register, declare, and pay taxes in Vietnam, regardless of whether they have a permanent establishment.

3. Conclusion

From 2025, Vietnam’s e-commerce tax regime will undergo major changes: platforms like Shopee, Lazada, TikTok Shop, and Tiki will directly withhold and pay taxes on behalf of sellers. This policy strengthens tax management, reduces revenue loss, and ensures fairness between traditional and online businesses.