**Vietnam Proposes New E-commerce Tax Rules Impacting Digital Sellers**
Vietnam is currently consulting on new e-commerce tax regulations that could significantly affect both resident and non-resident sellers operating on digital platforms. The proposed changes aim to introduce Value Added Tax (VAT) and income tax deductions for sellers, aligning Vietnam’s tax system more closely with the digital economy.
The growth of e-commerce in Vietnam has been substantial in recent years, with more consumers and businesses engaging in online transactions. However, existing tax regulations have struggled to keep pace with the rapid expansion of digital commerce. The proposed rules are designed to ensure fair taxation and compliance among online sellers, whether they are based in Vietnam or abroad.
For resident sellers, the new regulations would formalise VAT and income tax obligations on sales made through digital platforms. This approach seeks to create a more level playing field between traditional brick-and-mortar businesses and online retailers.
Non-resident sellers, who may not have a physical presence in Vietnam but supply goods or services to Vietnamese consumers, would also be affected. The proposal suggests that these sellers would be required to register for VAT and comply with local tax obligations, reducing the risk of tax avoidance and ensuring that overseas businesses contribute to the Vietnamese economy.
The consultation process provides an opportunity for stakeholders to give input on the proposed tax rules. Businesses operating in the e-commerce sector are encouraged to review the proposals and consider how the changes might impact their operations.
These developments reflect a global trend of governments seeking to adapt their tax systems to the realities of the digital marketplace. By updating its tax regulations, Vietnam aims to foster a fair and competitive environment for all businesses while securing essential tax revenues.
In conclusion, the proposed e-commerce tax rules signal Vietnam’s commitment to modernising its tax framework in line with the digital economy’s growth. Sellers on digital platforms should stay informed about these changes and participate in the consultation process to ensure their interests are represented.
Source: Vietnam e-commerce tax rules under consultation for new changes
Author: Victoria Semenchenko
