According to point d, clause 1, Article 2 of Circular 40/2021/TT-BTC regarding subjects subject to personal income tax (PIT): 

“1. Household businesses, individual businesses that are residents having activities manufacture, sale of goods and services (hereinafter referred to as “business operation”) in any of the business lines and sectors prescribed by law, including the following cases:

d) Agricultural production and business, forestry, salt production, aquaculture that are not eligible for tax exemption as prescribed by value-added tax (VAT) laws and personal income tax (PIT) laws;”

=> Thus, according to point d, clause 1, Article 2, Shopee sellers are required to register for tax, declare tax, and pay taxes according to regulations.

Subjects for tax registration, declaration, and payment: 

Selling on Shopee: Revenue from selling on Shopee and using Shopee’s warehouses (Shopee Express warehouse, FBN warehouse).

Detailed guidance

1. TAX REGISTRATION

Tax registration procedures:

Option 1: Direct tax registration
Submit tax registration documents to the competent local tax authority.
Tax registration documents include:

• Application for individual tax registration (Form 03-DK-TCT issued with Circular 105/2020/TT-BTC).
• Valid identity card or citizen ID card.
• Proof of residence or permanent address.
• Proof of business capital (if any).
• Contract with Shopee (if any) or general policy on Shopee.

Option 2: Online tax registration: 

Some local tax authorities allow online registration. However, you should contact the hotline first to confirm and receive instructions.

• Access the electronic tax portal: https://canhan.gdt.gov.vn/
• Log in using your personal income tax account.
• Select “Tax Registration”.
• Choose “Declare and submit tax registration documents” and select Form 03-DK-TCT issued with Circular 105/2020/TT-BTC.
• Accurately complete the information as guided.
• Submit the tax registration documents online.

Note: For new businesses, tax registration documents must be submitted no later than 10 days from the start of the business. (Clause 2, Article 44 of the 2019 Tax Management Law)

2. TAX DECLARATION

Tax period:
To determine the tax period, individual businesses need to work closely with the tax officer in charge. The tax period may be determined on a monthly or quarterly basis, depending on the scale and nature of the business.

Tax declaration form:

Online tax declaration:

• Access the electronic tax portal: https://canhan.gdt.gov.vn/
• Register for an electronic tax account using your business tax code.
• Select “Declare Tax”. Choose “IB Tax Declaration”.
• Select Form 01/IB: Tax declaration form for business households and individual businesses.
• Accurately complete the information as guided.
• Submit the tax declaration online.

Deadline for tax declaration submission:
The 20th day of the following month or the last day of the first month of the following quarter.

Tax calculation for business households and individual businesses:
The method for calculating VAT and PIT for business households and individual businesses is stipulated in Article 10 of Circular 40/2021/TT-BTC as follows:

VAT payable amount = Taxable turnover subject to VAT × VAT rate

PIT payable amount = Taxable turnover subject to PIT × PIT rate

3. PAYMENT OF TAX FOR INDIVIDUAL BUSINESSES
Methods for paying IB tax:

• Pay taxes at the bank as instructed by a bank officer.
• Pay taxes through the Etax mobile application.

4. NOTES:

Individuals selling on Shopee are responsible for:

• Accurately reporting their revenue, expenses, taxable income, and paying personal income tax in accordance with the law.
• Keeping records and documents related to their business activities.
• Shopee will periodically provide tax authorities with information on the seller’s revenue to assist with tax management (According to Decree 91/2022/ND-CP, e-commerce platforms are responsible for providing information about sellers to tax authorities to assist with tax collection and management).

If you have any further questions or inquiries, please contact TPM via the website: tpm.com.vn or hotline 028 3505 1800 for the quickest support.