Vietnam’s New E-Commerce Tax Decree: What Digital Platforms Need to Know

Vietnam’s digital economy is expanding rapidly, fueled by rising internet usage, a young and tech-savvy population, and strong government support for digital transformation. The country’s e-commerce market is projected to reach US$ 16.18 billion by 2025, making it one of the most dynamic in Southeast Asia.

To keep pace with this growth, the government introduced a new e-commerce tax decree, effective since April 1, 2025, aimed at closing compliance gaps, ensuring fair tax contributions from digital platforms, and improving revenue collection from the digital sector.

This regulation is part of a broader effort to modernize Vietnam’s tax framework and bring foreign and local digital players into the formal economy.

Platforms and sellers under the new scope

The decree covers a wide spectrum of digital service providers, including e-commerce marketplaces, video and music streaming services, social media platforms with embedded commerce features, ride-hailing and delivery apps, and providers of online advertising, cloud services, and digital payments.

Notably, it targets platforms that facilitate payments between buyers and sellers, which are now required to act as tax intermediaries.

Vietnam’s digital environment is massive. As of early 2024, the country had 78.44 million internet users, with an internet penetration rate of 79.1 percent. There were also 72.70 million social media users, representing over 73 percent of the total population.

E-commerce platforms such as Shopee, with over 262,000 sellers, and TikTok Shop, with 121,000 sellers, dominate Vietnam’s online retail space. These numbers show how deeply digital commerce is embedded in daily life—and why regulation is now more critical than ever.

New tax obligations for digital platforms

Digital platforms operating in Vietnam must now withhold value-added tax and personal income tax from sellers before releasing funds. If seller identification or transaction type is unclear, platforms are instructed to apply a default 5% VAT and 5% PIT rate.

Platforms are also required to collect and verify tax identification numbers from sellers and issue annual electronic tax withholding certificates. Upon request, platforms must submit seller transaction data to the General Department of Taxation (GDT).

Foreign digital platforms without a physical presence in Vietnam must register electronically with the GDT or appoint a licensed Vietnamese tax agent. This ensures that even cross-border digital services contribute to Vietnam’s tax base.

Balancing government goals and business concerns

From the government’s perspective, this decree is a necessary step to reduce tax evasion in the digital economy. With a growing number of cross-border services operating without a legal entity in Vietnam, authorities aim to level the playing field between local and foreign players. The regulation also supports Vietnam’s shift to a more transparent, accountable tax system in line with international best practices. Ultimately, the goal is to secure tax revenue from fast-growing digital sectors that have long operated beyond the reach of traditional enforcement mechanisms.

However, the business community has voiced strong concerns over implementation challenges. Industry groups such as the Vietnam Chamber of Commerce and Industry (VCCI) have cited the limited time available for platforms to update IT systems, verify seller data, and ensure compliance.

One of the most pressing issues involves micro and small sellers. Many operate informally or lack basic accounting systems. Monthly reporting obligations and the requirement to declare expenses such as advertising, inventory, and labor costs are seen as burdensome and impractical.

Another technical hurdle is seller residency classification. In a digital-first environment, it is often difficult for platforms to determine whether a seller is a resident or non-resident. Proposals have been made to allow self-declarations from sellers, backed by verification tools to reduce liability for platforms and encourage compliance without disrupting operations.

Adjusting to the new compliance landscape

Digital platforms—local and foreign—must urgently assess their readiness. Key areas of focus include:

• Updating seller onboarding processes to include TIN collection and verification
• Automating tax withholding, reporting, and certificate generation
• Strengthening internal systems for storing and submitting transaction data securely
• Providing clear, accessible resources to sellers on how to comply with the new rules

Foreign platforms should ensure timely registration with the GDT or engage a local tax agent to manage filings.

Educating sellers is equally vital. Many operate informally and may be unaware of their obligations under the decree. Proactive communication—through help centers, FAQs, and email outreach—can significantly ease the transition and promote voluntary compliance.

Vietnam’s e-commerce regulation enters a new era

Vietnam’s new tax decree marks a turning point in how digital commerce is governed. With over 260,000 sellers on Shopee alone and millions of digital transactions occurring daily, the regulation seeks to instill greater accountability and transparency in one of the region’s most vibrant online economies.

The decree brings Vietnam in line with global trends toward taxing digital platforms and services. While the short-term challenges are considerable, especially for small sellers, the long-term benefits include a more level playing field, improved public revenue, and enhanced consumer protection.

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