Understanding Vietnam’s Tax Withholding Framework for Foreign E-Commerce Platforms

Vietnam has introduced new tax administration requirements for foreign e-commerce and digital platforms, mandating tax withholding, declaration, and payment obligations on behalf of individual sellers operating in the country.

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As Vietnam’s digital economy continues to expand, tax authorities are strengthening oversight of income generated through cross-border platforms. On June 9, 2025, the government issued Decree 117/2025/ND-CP, establishing a framework for tax management of individuals conducting business on e-commerce and digital platforms.

To facilitate implementation, the General Department of Taxation (GDT) has released a guidance handbook for foreign platform operators with payment functions, outlining procedures for withholding, declaring, and remitting taxes on behalf of individual sellers.

See also: Vietnam E-Commerce in 2025: E-Business Index Highlights

Scope of tax withholding obligations

Foreign e-commerce platforms and digital service providers with integrated payment functions are required to withhold, declare, and pay taxes on behalf of individual sellers.

These platforms are defined as systems that allow buyers to complete transactions directly through integrated payment methods, including:

• E-wallets
• Bank cards
• Bank transfers
• Integrated payment systems
• Cash-on-delivery (COD) arrangements

Taxable individuals

The withholding obligation applies to:

• Vietnamese tax residents earning income from business activities on foreign e-commerce or digital platforms
• Non-resident individuals engaging in the sale of goods or services to consumers in Vietnam via such platforms

Individuals are responsible for providing accurate and timely information, including tax identification numbers, transaction details, and residency status. Platform operators rely on this information to determine withholding obligations and bear no responsibility for inaccuracies provided by sellers.

See also: Vietnam’s E-Commerce Law 2025: Key Provisions and Implications

Applicable taxes and withholding rates

Platform operators are required to withhold:

• Value-added tax (VAT)
• Personal income tax (PIT)

These taxes are calculated as a percentage of revenue per completed transaction.

(*) This does not apply to imported goods for which import VAT has already been paid during the customs declaration process.  

Timing of tax withholding

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Tax must be withheld at the point the transaction is successfully completed, specifically when:

• The order is confirmed; and
• The buyer completes payment

This ensures tax collection aligns with actual cash flow received by the platform.

Determining taxable revenue

Taxable revenue is defined as the amount earned by the seller that is collected by the platform on their behalf. Importantly, this differs from both:

• The total amount paid by the buyer; and
• The net amount received by the seller after platform fees

Example: Revenue calculation

A transaction on a foreign e-commerce platform includes:

• Listed price: US$1,000
• Platform discount: US$40
• Seller discount: US$20
• Shipping discount (platform): US$10
• Shipping fee paid by buyer: US$30
• Platform fee charged to seller: US$50

Accordingly:

• Buyer payment: 1,000 + 30 – 40 – 20 – 10 = US$960
• Seller receipt: 1,000 – 20 – 50 = US$930
• Taxable revenue: 1,000 – 20 = US$980

This example highlights that taxable revenue excludes platform discounts but includes seller-applied discounts.

Tax registration and compliance requirements

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Enhancing internal audit and risk management

To fulfill tax obligations in Vietnam, foreign platform operators must obtain a tax identification number (TIN) through the General Department of Taxation’s e-portal.

Key requirements include:

• Access to the internet
• A registered official email address for communication with tax authorities

Once registered, the tax authority will issue a 10-digit TIN and electronic account credentials via email.

This TIN is used to:

• Declare and pay taxes on behalf of individual sellers
• Report withheld tax amounts

Platforms that have already been assigned a TIN may continue using the same number for withholding-related obligations.

Delegation and operational considerations

Foreign platform operators may authorize a local representative in Vietnam to:

• Register for tax
• File tax declarations
• Make tax payments

This provides flexibility for compliance while ensuring alignment with Vietnam’s tax administration requirements.

Guide to tax declaration for withheld taxes on foreign e-commerce platforms

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Foreign e-commerce platforms and digital service providers with tax withholding obligations in Vietnam are required to submit monthly tax declaration dossiers no later than the 20th of the following month, covering taxes withheld from individual sellers in the preceding period.

The declaration must follow the following step-by-step process:

Step 1: Prepare declaration data

Taxpayers must compile the following information for each individual seller, categorized by business line:

• Total revenue generated during the tax period
• VAT withheld
• PIT withheld from each seller across all business lines

In cases where goods or services are canceled or returned, taxpayers must:

• Record the corresponding adjustments to revenue, VAT, and PIT
• Classify these adjustments by business line and individual seller

Net taxable amounts are determined by offsetting total figures against canceled or returned transactions:

Net amounts = Total revenue and taxes – Adjustments for cancellations/returns

Based on these calculations, taxpayers determine the final tax payable for each seller and category.

Taxpayers must then complete Form No. 01-1/BK-CNKD-TMDT, detailing the withheld taxes for individuals conducting business on e-commerce platforms.

Step 2: Submit the tax declaration

Taxpayers must log in to the foreign supplier portal on the Vietnamese tax authority’s e-portal (https://etaxvn.gdt.gov.vn/) and select the relevant declaration parameters:

• Tax period
• Declaration currency
• Payment currency

The system currently supports declarations and payments in up to 14 freely convertible currencies.

Taxpayers are required to complete Form No. 01/CNKD-TMDT, using data from the detailed schedule (Form No. 01-1/BK-CNKD-TMDT). Prior to submission, all information must be reviewed for accuracy. The declaration is finalized by entering the verification code sent via email.

Step 3: Submit amended declarations (if required)

Where errors or omissions are identified after submission, taxpayers must file an amended declaration by:

• Revising incorrect information in Form No. 01-1/BK-CNKD-TMDT
• Logging into the portal and selecting the “Tax Declaration” function
• Updating Form No. 01/CNKD-TMDT based on revised data
• Re-submitting the declaration with updated attachments
• Entering the verification code to complete the process

Step 4: Pay the tax

Following submission, taxpayers will receive a confirmation email from the Vietnamese tax authority containing:

• Payment reference ID
• Total payable amount
• Payment currency
• Bank account details
• SWIFT code of the State Treasury (maintained at Vietcombank)
• Payment instructions

Taxpayers must transfer funds strictly in accordance with the provided instructions to the designated State Treasury account. Taxpayers are required to complete and submit Form No. 01/BKNT-TMDT to the tax authority.

Notes:

1. Each payment transaction must be accompanied by a corresponding detailed schedule
2. The total declared amount must match the actual amount remitted

After completing the payment, taxpayers may retrieve the payment reference ID using the lookup function on the eTax portal.

Manage tax withholding certificates

Foreign e-commerce platforms with integrated payment functions must:

• Register for the use of electronic tax withholding certificates via the foreign supplier portal using Form No. 01/DKTD-CTDT (issued under Decree 70/2025/ND-CP)
• Issue annual electronic withholding certificates to individuals upon request

These certificates follow Form No. 01/CTKT-TMDT (issued under Decree 117/2025/ND-CP) and are not required to be submitted to the tax authority.

Managing tax in Vietnam is critical for FDI companies to stay compliant with local regulations, GST requirements, and global standards such as IFRS, navigate complex filings, and apply correct tax treatments. A well-structured tax process helps to avoid penalties and stay 100% compliant.

Luy Doan

Assistant Manager, Tax

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