VECOM proposes delay in e-commerce tax collection timeline

March 28, 2025 - 08:18
Starting April 1, e-commerce and digital platforms with payment functions must declare and pay taxes on behalf of business households and individual sellers. This requirement is part of the draft amendments to the Tax Administration Law, which was passed by the National Assembly on November 29.
A woman placing a shopping order online. — Photo congly.vn

HÀ NỘI — The Vietnam E-Commerce Association (VECOM) has proposed that the National Assembly consider delaying the timeline for e-commerce platforms to declare and pay taxes on behalf of sellers until July 1.

Starting April 1, e-commerce and digital platforms with payment functions must declare and pay taxes on behalf of business households and individual sellers. This requirement is part of the amendments to the Tax Administration Law, which was passed by the National Assembly on November 29.

With only days left until the new tax regulation takes effect, VECOM has raised concerns over the absence of a guiding decree. This lack of clarity has led to confusion among businesses managing e-commerce platforms and sellers operating on both domestic and foreign platforms, according to the association.

After two official working sessions with the Tax Department, VECOM said that many issues regarding the tax obligations of business households and individual sellers remain unresolved, particularly in tax declaration and refund procedures.

E-commerce platforms have also been inundated with questions about the new regulation, but are struggling to provide clear answers due to the lack of an official guidance document. Meanwhile, inconsistencies in understanding and responses from tax authorities at both central and local levels have further added to the confusion.

VECOM has also justified its proposal to postpone the e-commerce tax regulation by citing the Value Added Tax (VAT) Law 2024, which also mandates e-commerce platforms deduct and pay taxes on behalf of business households and individual businesses starting July 1.

Aligning both regulations, VECOM argues, would ensure consistency and give businesses adequate time to adapt to the new tax requirements.

Previously, the Việt Nam Chamber of Commerce and Industry (VCCI) had petitioned the Ministry of Finance to postpone the enforcement of the draft decree on tax management for business activities conducted via e-commerce and digital platforms.

The regulation, which will apply to individual sellers and household businesses, is set to take effect on April 1. According to VCCI, businesses have raised concerns about the draft decree's timeline.

VCCI said businesses need additional time to develop IT systems, allocate workers and educate sellers on compliance requirements. As the decree remains in its draft stage, the chamber has proposed postponing its enforcement to July 1 to allow for adequate preparation.

Leading e-commerce platforms Shopee and Lazada have expressed positive responses to the upcoming tax regulation changes.

Shopee has confirmed its commitment to complying with the revised tax law while providing maximum support to sellers to help them fulfil their tax obligations.

The platform has been preparing its technical infrastructure, but is still awaiting specific instructions from authorities on tax collection.

Shopee is also working closely with regulators to refine tax policies for greater transparency and convenience.

Lazada, meanwhile, has actively participated in discussions with tax authorities to ensure a smooth implementation of the new regulations. The company is preparing resources, developing technical features and requiring sellers to update their information and tax codes to ensure compliance. — VNS

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