E-commerce Platforms with Payment Function and Tax Responsibilities

I. General Introduction

Decree No. 117/2025/ND-CP of the Government officially comes into effect from July 1, 2025. One of the important contents mentioned is the regulation on the responsibility of deduction and tax payment on behalf of organizations managing e-commerce platforms (e-commerce), especially platforms with payment functions.

II. Concept: What is an E-commerce Platform with Payment Function?

According to Clause 1, Article 3 of Decree 117/2025/ND-CP:

An “e-commerce platform with payment function” is a platform established to allow buyers to make direct payments through methods such as:

• E-wallets (MoMo, ShopeePay, etc.),

• Bank cards,

• Transfers via integrated systems,

• Cash on Delivery (COD),

• Other legal payment methods.

Unlike platforms that only post information/brokerage, platforms with payment functions directly handle the flow of money and act as an intermediary for collection and payment between buyers and sellers.

III. Illustrative Examples: Which Platforms Have Payment Functions?

Some typical e-commerce platforms with payment functions include:

• Shopee: Buyers pay via ShopeePay or bank transfer. Shopee holds the money and only transfers it to the seller after confirming successful delivery.

• Lazada: Has a payment processing system via cards, e-wallets, and COD. Lazada collects and pays on behalf of sellers and performs periodic revenue reconciliation.

• Tiki: Allows direct payment on the platform and manages the flow of money from buyers to sellers.

• TikTok Shop: Buyers pay via e-wallets or linked bank accounts. After the order is completed, TikTok Shop returns the money to the seller.

Meanwhile:

• Facebook, Instagram, Zalo: Do not have a collection and payment system. Transactions and payments take place outside the platform. Buyers and sellers contact and pay each other directly.

Therefore, platforms such as Shopee, Lazada, Tiki, and TikTok Shop belong to the group of platforms with payment functions. Facebook, Zalo, etc., do not.

IV. Tax Responsibilities of Platforms with Payment Functions

Based on Articles 4, 5, and 6 of the Decree:

• Deduct VAT and personal income tax (PIT) of households and individuals generating revenue on the platform.

• Time of deduction: immediately after the transaction is successfully confirmed and payment is completed.

• Tax deduction rates:

  Transaction Type	VAT	PIT (Resident)	PIT (Non-Resident)
  Sale of Goods	1%	0.5%	1%
  Provision of Services	5%	2%	5%
  Services Attached to Goods	3%	1.5%	2%

  If the type cannot be determined, the highest corresponding tax rate will be applied.

• Declare and pay taxes monthly via electronic methods.

• Tax refunds: Platforms are responsible for refunding or offsetting taxes for canceled or returned transactions.

• Issue tax deduction certificates according to the prescribed form to households and individuals (electronically).

• Not required to re-provide personal information if tax has been correctly deducted, declared, and paid.

V. Other Important Notes

Foreign organizations providing e-commerce platforms with payment functions to users in Vietnam are also subject to deduction and tax payment on behalf of sellers, as stipulated in Clause 2, Article 3 and Clause 2, Article 4 of Decree 117/2025/ND-CP.

• Example: A foreign platform earning income from sellers in Vietnam (such as Amazon, Etsy…) will have to register for a tax identification number and fulfill tax obligations similar to domestic platforms.

Organizations in Vietnam representing foreign platforms (i.e., intermediary organizations collecting and paying on behalf of or paying income instead) must fulfill the responsibility of deducting and paying taxes on behalf of business households and individuals in Vietnam – as stipulated in Clause 2, Article 3 of Decree 117/2025/ND-CP.

Foreign organizations are granted a 10-digit tax identification number to fulfill the obligation of declaring and paying taxes on behalf of sellers in Vietnam, in accordance with current regulations in Circular 80/2021/TT-BTC and guidance in Article 6 of Decree 117/2025/ND-CP.

VI. Conclusion

Decree 117/2025/ND-CP is an important step forward in the tax management of e-commerce activities. Requiring platforms with payment functions to deduct and pay taxes on behalf of sellers not only ensures that tax obligations are fully met but also creates transparency and fairness in digital business operations.