[Draft] Decree on Tax Filing and Payment on Behalf of E-commerce Individual Businesses

GOVERNMENT -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No:           /2025/NĐ-CP	Hanoi, date        month         year 2025
DRAFT

 

DECREE
On Tax Management for Business Activities on E-commerce Platforms and Digital Platforms Conducted by Household Businesses and Individual Business Entities

Pursuant to the Law on Government Organization dated June 19, 2015; the Law amending and supplementing certain provisions of the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law amending and supplementing certain provisions of the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Assets, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, and the Law on Handling Administrative Violations dated November 29, 2024;

Pursuant to the Law on Value-Added Tax dated June 3, 2008, and its amending laws, as well as the Law on Value-Added Tax dated November 29, 2024;

Pursuant to the Law on Personal Income Tax dated November 21, 2007, and its amendments dated November 22, 2022;

Upon the proposal of the Minister of Finance,

The Government hereby issues this Decree on tax management for business activities on e-commerce platforms and digital platforms conducted by household businesses and individual business entities.

CHAPTER I

GENERAL PROVISIONS

Article 1. Scope of Regulation
This Decree regulates:

1. The tax withholding and remittance obligations of organizations managing e-commerce platforms, digital platforms with payment functions (both domestic and foreign), and other digital economy activities;
2. The procedures for tax withholding, tax remittance, and tax declaration on behalf of household businesses and individuals conducting business through e-commerce platforms that are subject to tax withholding and remittance;
3. The tax declaration, tax payment, and tax refund procedures for household businesses and individuals conducting business on e-commerce platforms and digital platforms that are not subject to tax withholding and remittance.

Article 2. Subjects of Application

1. Resident and non-resident individuals conducting business on e-commerce platforms, digital platforms, or other digital economy activities (hereinafter referred to as "e-commerce platforms").
2. Organizations managing e-commerce platforms or digital platforms with payment functions, as well as other organizations engaged in digital economy activities (hereinafter referred to as "e-commerce platform management organizations subject to tax withholding and remittance").
   • E-commerce platforms and digital platforms with payment functions as specified in this Clause include platforms enabling buyers to make direct payments via e-wallets, bank cards, integrated transfer systems, or cash on delivery (COD).
   • Other digital economy organizations as specified in Clauses 1 and 2 of this Article include organizations that collaborate in the sale of goods or provision of services with household businesses and individual business entities, or support them in conducting transactions through digital platforms. These include intermediary service platforms, digital content providers, online advertising agencies, cloud storage providers, social networks engaged in business activities, online education service providers, online gaming and entertainment service providers, and Vietnamese entities acting as intermediaries for foreign digital platform providers to make payments to individuals.
3. E-commerce platforms and digital platforms without payment functions (hereinafter referred to as "e-commerce platforms not subject to tax withholding and remittance").
4. Tax authorities and other related organizations and individuals.

CHAPTER II

TAX WITHHOLDING, TAX REMITTANCE, AND TAX DECLARATION BY E-COMMERCE PLATFORM MANAGEMENT ORGANIZATIONS SUBJECT TO TAX WITHHOLDING AND REMITTANCE

Article 3. Tax Withholding and Remittance

1. E-commerce platform management organizations, whether domestic or foreign, subject to tax withholding and remittance (including direct owners or authorized managers of e-commerce platforms) must withhold and remit Value-Added Tax (VAT) and Personal Income Tax (PIT) before paying household businesses or individual business entities for transactions conducted through their platforms.
   • VAT must be withheld and remitted for transactions generating domestic revenue for resident individuals.
   • PIT must be withheld and remitted for transactions generating both domestic and international revenue for resident individuals.
2. For non-resident individuals conducting business on e-commerce platforms:
3. VAT must be withheld and remitted for transactions generating domestic revenue.
4. PIT must be withheld and remitted for transactions generating domestic revenue.

Article 4. Timing of Tax Withholding and Determination of Taxable Amounts

1. Timing of Tax Withholding: Before transferring payments from buyers to household businesses or individual business entities, e-commerce platform management organizations must withhold and remit VAT and PIT for each completed transaction.
2. Taxable Amounts:
   • VAT rates:
     1. Goods: 1%
     2. Services: 5%
     3. Transportation and service-related goods: 3%
   • PIT rates for resident individuals:
   • Goods: 0.5%
   • Services: 2%
   • Transportation and service-related goods: 1.5%
   • Goods: 1%
   • Services: 5%
   • Transportation and service-related goods: 2%
   • PIT rates for non-resident individuals:
   • If an e-commerce platform management organization cannot determine whether a transaction involves goods or services, the highest applicable tax rate shall be used.
   • The taxable revenue per transaction is the total amount collected from buyers by the e-commerce platform management organization on behalf of the seller.

Article 5. Tax Declaration and Remittance Procedures

1. E-commerce platform management organizations must declare and remit withheld taxes on a monthly basis.
   • Domestic e-commerce platform management organizations will be assigned a 10-digit tax code for tax declaration and remittance.
   • Foreign e-commerce platform management organizations must register for a 10-digit tax code and follow the tax compliance framework for foreign suppliers as per Circular No. 80/2021/TT-BTC.
2. Required tax declaration documents:
3. Tax withholding declaration form (Form No. 01/CNKD-TMĐT).
4. Detailed tax withholding report (Form No. 01-1/BK-CNKD-TMĐT).
5. The tax declaration must be submitted electronically to the tax authority managing e-commerce taxation.
6. Deadlines for tax remittance and declaration submission shall follow Articles 44 and 55 of the Tax Administration Law No. 38/2019/QH14.

Article 6. Responsibilities of E-commerce Platform Management Organizations Subject to Tax Withholding and Remittance

1. If an organization provides business information of household businesses and individuals in accordance with this Decree, it is exempt from further information reporting requirements under Decree No. 91/2022/NĐ-CP.
2. Register and use electronic tax withholding certificates, maintain tax records, and issue electronic tax withholding certificates to household businesses and individuals on an annual basis.
3. Securely manage tax accounts and submit transaction data to tax authorities as required.
4. Comply with tax obligations as per the Law on Tax Administration.

CHAPTER III

TAX DECLARATION, PAYMENT, AND REFUND PROCEDURES FOR HOUSEHOLD BUSINESSES AND INDIVIDUALS NOT SUBJECT TO TAX WITHHOLDING AND REMITTANCE

Article 7. Tax Declaration and Payment Procedures for Resident Households and Individuals Conducting Business on E-commerce Platforms Without Tax Deduction or Substitute Tax Payment

1. Resident households and individuals conducting business on e-commerce platforms, who are not subject to tax deduction or substitute tax payment, must directly fulfill their tax obligations for value-added tax (VAT), personal income tax (PIT), special consumption tax, environmental protection tax, natural resource tax, and other payments required by law. Tax declaration and payment must be conducted through the General Department of Taxation’s electronic portal (the e-tax portal for households and individuals engaged in e-commerce and digital platform businesses).
2. Tax Declaration
   a) Monthly Tax Declaration, as per the Law on Tax Administration, applies to:
   • (a.1) Business households and individuals registered to pay tax using the declaration method and engaging in e-commerce activities.
   • (a.2) Business households and individuals not registered for the declaration method but conducting regular business activities on e-commerce platforms or digital platforms.

b) Tax Declaration Per Occurrence, as per the Law on Tax Administration, applies to business households and individuals not registered for the declaration method but conducting occasional business on e-commerce platforms.

3. Registration, Declaration, and Tax Payment Procedures
   a) Tax Declaration Documents
   • (a.1) Tax declaration form for business households and individuals (Form 02/CNKD-TĐMT attached to this Decree).
   • (a.2) Business activity statement (Form 02-1/BK-CNKD-TĐMT attached to this Decree) (applicable to business households and individuals under Clause 2(a) of this Article).

b) Tax Registration, Filing Deadlines, and Payment Procedures

• Follow the regulations under the Law on Tax Administration and the State Budget Law.

c) Receiving and Processing Tax Declarations

• The tax office responsible is determined by the place of residence (current residence, temporary residence, or permanent residence) of the business household or individual.

Article 8. Tax Declaration and Payment Procedures for Non-Resident Individuals Engaged in E-commerce Who Are Not Subject to Tax Deduction or Substitute Tax Payment

1. Non-resident individuals conducting business on e-commerce platforms who are not subject to tax deduction or substitute tax payment must pay VAT on services provided via e-commerce and PIT on goods and services sold via e-commerce. Taxes are calculated based on a percentage of revenue per occurrence, following the VAT and PIT laws.
2. Tax Rate Percentages

a) VAT Rates

• Services: 5%
• Transportation and service-related goods: 3%

b) PIT Rates

• Goods: 1%
• Services: 5%
• Transportation: 2%

1. Tax Declaration
   a) Non-resident individuals must declare and pay VAT and PIT per occurrence to the e-commerce tax authority via the General Department of Taxation’s e-tax portal.
   b) Electronic tax registration must be done along with the first tax registration using Form 04/CNKD-TMĐT via the e-tax portal.
2. Tax Declaration and Payment Procedures
   a) Tax Declaration Documents
3. Tax declaration form for non-resident individuals (Form 03/CNNN-TMĐT attached to this Decree).
   b) Filing and Payment Deadlines
4. Follow the provisions of the Tax Administration Law and the State Budget Law.

Article 9. Tax Refund Procedures

1. If business households and individuals have had VAT and PIT withheld and paid by platform operators (as per Article 3 of this Decree), but their annual revenue qualifies for tax exemption or non-taxable status, they may apply for a tax refund after the platform operator has completed tax filing and substitute tax payment for that tax year.
2. Similarly, if business households and individuals have self-paid VAT and PIT (as per Articles 7 and 8 of this Decree) but later qualify for tax exemption or non-taxable status based on annual revenue, they may apply for a tax refund for overpaid taxes.
3. Tax Refund Application Documents
   • Tax refund request form (Form 03/CNKD-TMĐT attached to this Decree).
   • Tax withholding certificate (Form 01/CTKT-TMĐT attached to this Decree).
4. Receiving and Processing Tax Refund Applications
5. The responsible authority is the Tax Department of the applicant’s residence (current, temporary, or permanent) at the time of filing the refund request.

Article 10. Responsibilities of Households and Individuals Engaged in E-commerce and Digital Platform Business

1. Households and individuals conducting business on e-commerce platforms and subject to tax withholding and substitute payment must still declare and pay special consumption tax, environmental protection tax, natural resource tax, and other statutory contributions.
2. Households and individuals operating on e-commerce platforms, digital platforms, or in other digital economic activities must provide accurate and complete identification information (Vietnamese citizens: personal identification number; foreign nationals: passport number) to e-commerce platform operators and digital service providers.

Chapter IV 

Implementation Provisions

Article 11. Effectiveness and Implementation

1. This Decree takes effect from April 1, 2025. If any referenced legal documents are amended, supplemented, or replaced, they shall be applied accordingly.
2. Ministers, heads of ministerial-level agencies, government agencies, businesses, organizations, business households, and individuals must comply with this Decree.
3. Provincial and municipal Chairpersons must ensure coordination among local agencies for proper implementation.

Recipients: Central Party Secretariat Prime Minister and Deputy Prime Ministers Ministries, Government agencies People’s Councils and Committees of provinces and cities Office of the Central Committee and Party Committees Office of the President National Assembly Committees Supreme People's Court Supreme People's Procuracy State Audit Office Vietnam Fatherland Front Central agencies of mass organizations Government Office: Chief of Office, Deputy Chiefs, PM Assistants, National Web Portal, Departments, Units, Official Gazette Archives: VT, KTTH (2 copies)

On behalf of the Government Prime Minister Pham Minh Chinh

 

Attached file included with this document