Vietnam Proposes New E-commerce Tax Deductions for Digital Sellers
Vietnam is currently consulting on new e-commerce tax rules that could significantly impact both resident and nonresident sellers on digital platforms. The proposed regulations aim to introduce Value Added Tax (VAT) and income tax deductions, potentially changing the taxation landscape for online businesses operating in the country.
As e-commerce continues to grow rapidly in Vietnam, the government is looking to modernise its tax system to better capture revenue from digital transactions. These proposed changes are part of an effort to ensure fair taxation between traditional and online businesses, while also aligning with global tax practices.
If implemented, the new rules would require digital platforms to facilitate VAT and income tax deductions at the point of transaction. This means that online sellers, whether based in Vietnam or abroad, could see taxes automatically withheld by the platforms they use. This approach aims to simplify tax compliance and reduce the administrative burden on individual sellers.
The consultation is still ongoing, and businesses involved in Vietnam’s e-commerce sector are encouraged to stay informed about these developments. Adapting to these potential changes will be crucial for sellers to remain compliant and competitive in the evolving digital marketplace.
Source: Vietnam e-commerce tax rules under consultation for new changes
Author: Victoria Semenchenko
