**Vietnam E-commerce Tax Rules Under Consultation for New Changes**
Vietnam is currently reviewing its e-commerce tax regulations, proposing significant changes that could impact both resident and non-resident sellers on digital platforms. The government aims to introduce Value Added Tax (VAT) and income tax deductions at the source, streamlining tax compliance in the burgeoning e-commerce sector.
As one of Southeast Asia’s fastest-growing digital markets, Vietnam has seen a substantial rise in online commerce. This growth has prompted authorities to modernise tax policies to ensure a fair and efficient system that keeps pace with technological advancements. The proposed regulations would require digital platforms to withhold VAT and income taxes before disbursing revenues to sellers.
For resident sellers, this means a simplified tax process, as taxes would be automatically deducted, reducing the administrative burden of filing. Non-resident sellers, who operate without a physical presence in Vietnam, would also be subject to these deductions, ensuring they contribute appropriately to the country’s tax revenues.
These changes reflect Vietnam’s commitment to fostering a transparent and equitable e-commerce environment. By implementing source-based tax deductions, the government seeks to prevent tax evasion and ensure all market participants operate on a level playing field.
Stakeholders in the e-commerce industry are encouraged to participate in the consultation process. Their feedback is crucial in shaping regulations that balance effective tax collection with the industry’s growth and innovation.
As the consultation progresses, digital platform operators and online sellers should stay informed about potential regulatory changes. Preparing for these adjustments will be essential to ensure continued compliance and to capitalise on Vietnam’s dynamic e-commerce landscape.
Source: Vietnam e-commerce tax rules under consultation for new changes
Author: Victoria Semenchenko
