E-commerce platform operators to pay taxes on behalf of sellers from July

Domestic and foreign e-commerce platform operators will have to deduct and pay taxes on sales from goods and services on behalf of households and individuals conducting business activities on the former’s platforms from July 1.

According to Government Decree 117/2025/ND-CP dated June 9, on tax administration for business activities of households and individuals on e-commerce platforms and digital platforms, the platform operators will deduct payable value-added tax (VAT) and personal income tax (PIT) amounts once the transaction is confirmed successful and payment is accepted.

To-be-deducted VAT and PIT amounts will be determined as a percentage (%) of the turnover from each transaction of goods sale and service provision. The specific VAT rate is 1 percent for goods, 5 percent for services, or 3 percent for transport and services related to goods.

In the meantime, PIT rates applicable to resident individuals will be fixed at 0.5 percent for goods, 2 percent for services and 1.5 percent for transport and services related to goods. For non-resident individuals, the VAT rates are 1 percent, 2 percent and 2 percent, respectively.

It should be noted that the highest tax rate will be applied when an e-commerce platform operator cannot determine whether the turnover-generating transaction on its/his/her platform is for goods or services or cannot determine the specific type of service.

The decree also states that the platform operators must declare the deducted VAT and PIT amounts on a monthly basis. Particularly for cancelled transactions or transactions involving goods return, the operators must clear the paid tax amounts for such transactions against the payable tax amounts for goods sale and service provision transactions .

By VLLF