**Vietnam Proposes New E-commerce Tax Deductions for Digital Sellers**
Vietnam is currently consulting on proposed changes to its e-commerce tax regulations, aiming to introduce value-added tax (VAT) and income tax deductions for both resident and non-resident sellers operating on digital platforms. This initiative is part of the government’s broader effort to modernise its tax system in response to the rapid growth of the e-commerce sector.
The proposed regulations seek to simplify tax compliance for online sellers by clarifying tax obligations and potentially reducing the tax burden. For resident sellers, the changes could lead to deductions that lower their taxable income, encouraging more entrepreneurs to participate in the digital marketplace. Non-resident sellers may also benefit from clearer guidelines, making it easier to navigate Vietnam’s tax requirements.
Vietnam’s e-commerce market has been expanding rapidly in recent years, driven by increased internet accessibility and a growing consumer base. By revising its tax policies, the government aims to support this growth while ensuring fair and efficient tax collection. The consultation process signifies Vietnam’s commitment to engaging with industry stakeholders to create a balanced regulatory environment that fosters innovation and economic development.
Digital platform operators and online sellers are encouraged to participate in the consultation to provide feedback on the proposed changes. The outcome of this process could significantly impact how e-commerce businesses operate in Vietnam, potentially setting a precedent for tax regulations in the region.
As the e-commerce landscape evolves, staying informed about regulatory developments is crucial for businesses aiming to maintain compliance and capitalise on new opportunities in the market.
Source: Vietnam e-commerce tax rules under consultation for new changes
Author: Victoria Semenchenko
