- Key Changes in E-Commerce Tax in 2025 That Affect Businesses
The most notable regulation comes from:
Decree No. 117/2025/NĐ-CP on tax administration for business activities on e-commerce and digital platforms (effective from July 1, 2025):
This Decree clearly states that e-commerce platforms with payment functionality are responsible for withholding, declaring, and paying taxes on behalf of sellers. However, this regulation mainly targets individuals and household businesses, who have previously been more difficult for tax authorities to monitor in terms of revenue and tax compliance.
- Are Businesses Selling on E-Commerce Platforms Subject to Tax Withholding by Platforms?
This is the most pressing question for businesses (established under the Law on Enterprises, with a business tax code and full accounting regime) when selling on e-commerce platforms.
Typically, businesses are NOT subject to tax withholding by e-commerce platforms.
Why?
- Different tax regimes: Businesses are already responsible for self-declaration and payment of taxes such as Corporate Income Tax (CIT), Value Added Tax (VAT), and Personal Income Tax (PIT) for employee wages according to their own accounting and tax methods.
Having the platform withhold taxes on behalf of businesses would cause inconsistency, as the tax calculation methods differ (e.g., VAT under the credit method, CIT with deductible expenses and loss carryforwards…). - Purpose of the new regulation: The primary goal of the new rules is to tighten tax control over individuals and household businesses operating on platforms—entities that tax authorities have previously found challenging to manage.
However, there’s a key risk:
If a business fails to provide accurate and complete legal information to the platform (e.g., using a personal ID instead of a business license and tax code), the platform may mistakenly treat it as an individual or household business and withhold taxes accordingly.
Consequences of Misclassification:
- Accounting and finalization complications: Businesses could face “double taxation” on the same revenue—once withheld by the platform, and once via their own tax filings. Rectifying this (through refund or offsetting) can be time-consuming and complex.
- Compliance risks: Paying tax under the wrong taxpayer classification can result in compliance issues during tax audits or inspections.
III. What Should Businesses Selling on E-Commerce Platforms Do to Stay Compliant?
To ensure proper compliance and avoid unnecessary risks, businesses should take the following steps:
3.1. Ensure Accurate and Complete Registration with Platforms:
- Use official documents: Always register seller accounts using the Enterprise Registration Certificate and business tax code.
- Provide full legal details (e.g., company name, legal representative, registered address) to confirm your business status.
- Update the platform immediately if there are any changes in business information and confirm the updates with the platform support team.
3.2. Revenue Management and Tax Responsibilities:
- Record all revenue: Even when selling via platforms, businesses must fully account for all revenue in their own bookkeeping.
- Self-declare and pay taxes: Continue to fulfill all tax obligations, including CIT, VAT, business license fees, etc., in accordance with regulations.
- Maintain documentation: Keep all related invoices, bank statements, and supporting documents for accurate accounting and possible tax audits.
3.3. Issue Electronic Invoices:
- Invoicing obligation: Businesses generating revenue from sales via e-commerce platforms must issue electronic invoices to buyers, as stipulated in Decree 123/2020/NĐ-CP and Circular 78/2021/TT-BTC.
- E-invoices from cash registers (HĐĐT MTT): These are applicable to direct-to-consumer sales with high transaction frequency, including on e-commerce platforms if technical conditions are met.
- If the business has the necessary infrastructure to connect with tax authorities, HĐĐT MTT can be used for platform sales.
3.4. Stay Updated and Communicate:
- Regularly follow announcements and guidance from the Ministry of Finance, the General Department of Taxation, and the platforms where you operate.
- If you have any questions, contact the platform support team or a tax advisory expert such as TPM Tax Agent for timely and accurate assistance.
Contact TPM Tax Agent:
📞 028 3505 1800 | ✉️ htdn@tpm.com.vn | 🌐 tpm.com.vn
