**Vietnam Proposes New E-commerce Tax Deductions for Digital Sellers**
Vietnam is currently considering new tax regulations that could significantly impact e-commerce businesses operating within its borders. The proposed changes, now under consultation, aim to introduce Value Added Tax (VAT) and income tax deductions for both resident and non-resident sellers on digital platforms.
As the e-commerce sector in Vietnam continues to flourish, the government recognises the need to update its tax framework to accommodate the rapid growth of the digital economy. These proposed deductions are designed to streamline tax obligations and encourage compliance among online sellers, ensuring a fair and competitive marketplace.
For resident sellers, the new rules could simplify the process of calculating and deducting VAT and income tax, potentially reducing administrative burdens and fostering business growth. Non-resident sellers—foreign enterprises selling into Vietnam without a physical presence—would also be affected. By including non-resident sellers, Vietnam aims to level the playing field between domestic and international e-commerce businesses.
These changes reflect a global trend of governments adapting tax laws to better capture revenue from the burgeoning digital sector. Stakeholders in the e-commerce industry should stay informed about these developments, as the finalised regulations could have significant implications for their operations in Vietnam.
The consultation period offers an opportunity for businesses and interested parties to provide feedback on the proposed tax rules. Engaging in this dialogue can help shape policies that support both governmental objectives and the interests of the e-commerce community.
As Vietnam positions itself as a key player in the Southeast Asian digital market, these tax reforms could enhance transparency, boost investor confidence, and promote sustainable growth in the e-commerce sector.
Source: Vietnam e-commerce tax rules under consultation for new changes
Author: Victoria Semenchenko
