New rules in Vietnam that apply to digital and ecommerce platform operators as from 1 July 2025 require such operators to declare and withhold VAT and personal income tax on behalf of households and individuals conducting digital business activities on the platform. A decree issued on 9 June 2025 (Decree No. 117/2025/ND-CP) introduces specific VAT and personal income tax compliance obligations on both domestic and foreign e-commerce platform operators, digital platform operators with payment functions and other organisations conducting digital business activities in Vietnam.
This alert looks at the main features of the new rules.
The decree applies to the following persons:
A domestic e-commerce platform operator is assigned a unique tax identification number (10-digit TIN) that is used to declare and pay the tax. Tax registration is not required. A foreign e-commerce platform operator—which must register—is also assigned a 10-digit TIN to fulfill tax obligations in Vietnam as prescribed for foreign suppliers and may use the TIN to declare and pay tax on behalf of resident sellers doing business on foreign platforms.
E-commerce platform operators must declare and remit taxes withheld on a monthly basis. The withheld taxes of cancelled transactions or returned goods may be offset against withholding tax of other transactions.
Household/individual sellers must provide accurate information to e-commerce platform operators for related tax filings and are responsible for other applicable taxes, such as special consumption and environmental taxes.
Sellers whose taxes are withheld and paid by platforms are exempt from declaring and paying VAT and personal income tax for those platform transactions.
The following compliance obligations apply where a platform does not have payment functions:
Households/individuals may request a refund of VAT and personal income tax withheld and paid on their behalf by e-commerce platform operators for transactions arising during the year where the total annual business revenue is not subject to VAT and/or personal income tax, e.g., does not exceed the prescribed revenue threshold.
The decree marks an important step forward in strengthening Vietnam’s taxation framework and managing the digital economy by streamlining tax collection at the platform level while enhancing transparency, compliance and fairness among e-commerce participants. To navigate this new regulatory landscape, businesses—both platforms and sellers—should assess their digital sales channels and exposure to Vietnamese tax obligations now to ensure readiness and compliance.
Hillary Vu
Hien Truong
BDO in Vietnam
This alert looks at the main features of the new rules.
Covered Parties
The decree applies to the following persons:
- Domestic and foreign e-commerce platform operators;
- Domestic and foreign digital platform operators with payment functions;
- Other organisations performing digital business activities, both domestic and foreign (hereinafter referred to as “e-commerce platform operators” (including owners or authorised persons));
- Resident and nonresident households/individuals engaged in business through e-commerce and digital platforms; and
- Other relevant organisations and individuals.
Applicable Taxes and Withholding Obligations
Decree 117 imposes obligations with respect to the withholding and payment of VAT and personal income tax on behalf of households/individuals engaged in business activities on the platform:- VAT: Covered domestic and foreign e-commerce platform operators must withhold and pay VAT on behalf of households/individuals engaged in business activities on the platform (where the transactions involve consumers in Vietnam and generate revenue in Vietnam) for each domestic transaction generating revenue by the seller.
- Personal income tax: E-commerce platform operators must withhold and pay personal income tax on behalf of resident and nonresident household/individual businesses for every transaction that generates revenue through their platforms. In the case of resident individuals, the platform operator must fulfil these obligations regardless of whether the individual’s transactions are within or outside Vietnam, but for nonresidents, the withholding/payment obligations apply only to transactions that generate revenue in Vietnam. Residency status is determined in accordance with the personal income tax law and regulations.
| Transactions | VAT rate | PIT rate | |
| Resident | Nonresident | ||
| Supply of goods | 1% | 0.5% | 1% |
| Provision of services | 5% | 2% | 5% |
| Transportation and services associated with goods | 3% | 1.5% | 2% |
| Unspecified transactions | 5% | 2% | 5% |
Platform Tax Registration and Filing Obligations
A domestic e-commerce platform operator is assigned a unique tax identification number (10-digit TIN) that is used to declare and pay the tax. Tax registration is not required. A foreign e-commerce platform operator—which must register—is also assigned a 10-digit TIN to fulfill tax obligations in Vietnam as prescribed for foreign suppliers and may use the TIN to declare and pay tax on behalf of resident sellers doing business on foreign platforms.E-commerce platform operators must declare and remit taxes withheld on a monthly basis. The withheld taxes of cancelled transactions or returned goods may be offset against withholding tax of other transactions.
Household/individual sellers must provide accurate information to e-commerce platform operators for related tax filings and are responsible for other applicable taxes, such as special consumption and environmental taxes.
Sellers whose taxes are withheld and paid by platforms are exempt from declaring and paying VAT and personal income tax for those platform transactions.
Household/Individual Compliance Obligations for Sales Via E-Commerce Platforms Without Payment Functions
The following compliance obligations apply where a platform does not have payment functions:
- Vietnam residents:
- Residents are responsible for filing a tax return with Vietnam’s tax authorities with respect to VAT, personal income tax, Special consumption tax, environmental protection tax, resource tax and other amounts due to the state budget.
- Taxes must be declared monthly or at the time of each transaction if the business activities are irregular.
- Nonresidents:
- Nonresidents must file a tax return and pay VAT and personal income tax on goods and services traded on e-commerce platforms, calculated as a percentage of their revenue.
- Tax declaration and payment must be made for each transaction upon incurrence.
- The withholding rates are:
| Transactions | VAT rate | PIT rate |
| Supply of goods | 1% | 1% |
| Provision of services | 5% | 5% |
| Transportation and services associated with goods | 3% | 2% |
Tax Refund
Households/individuals may request a refund of VAT and personal income tax withheld and paid on their behalf by e-commerce platform operators for transactions arising during the year where the total annual business revenue is not subject to VAT and/or personal income tax, e.g., does not exceed the prescribed revenue threshold.
BDO Insight
The decree marks an important step forward in strengthening Vietnam’s taxation framework and managing the digital economy by streamlining tax collection at the platform level while enhancing transparency, compliance and fairness among e-commerce participants. To navigate this new regulatory landscape, businesses—both platforms and sellers—should assess their digital sales channels and exposure to Vietnamese tax obligations now to ensure readiness and compliance.Hillary Vu
Hien Truong
BDO in Vietnam