Decree No. 117/2025/NĐ-CP dated June 9, 2025, issued bythe Government on tax administration for business activities on e-commerce platforms and digital platforms of households and individuals

Accordingly, under Decree No. 117/2025/NĐ-CP, the Government has specifically stipulated the withholding and payment of taxes on behalf of households and individuals conducting business on e-commerce and digital platforms as follows:

• Organizations managing e-commerce platforms, whether domestic or foreign (including direct platform owners or those authorized to manage the platform), are responsible for withholding and paying value-added tax (VAT) on behalf of households and individuals conducting business on the platform. This applies to each transaction involving the supply of goods or services that generates revenue within Vietnam, in accordance with VAT laws.
• Organizations managing e-commerce platforms, whether domestic or foreign (including direct platform owners or those authorized to manage the platform), are responsible for withholding and paying personal income tax (PIT) on behalf of resident households and individuals for each transaction involving the supply of goods or services that generates revenue both within and outside of Vietnam. They are also responsible for withholding and paying PIT on behalf of non-resident individuals for each transaction involving the supply of goods or services that generates domestic revenue, in accordance with personal income tax regulations.

In addition, Clause 1, Article 5 of Decree No. 117/2025/NĐ-CP stipulates the timing of tax withholding for business activities conducted on e-commerce and digital platforms by households and individuals as follows:

E-commerce platform management organizations, as defined in Article 4 of Decree No. 117/2025/NĐ-CP, shall withhold VAT and PIT payable for each transaction involving the supply of goods or services that generates revenue on the platform under their management, at the time when the transaction is confirmed as successful and payment is accepted for the sale of goods or services on the platform by households and individuals.

Note:

• An organization that operates an e-commerce trading platform or a digital platform with payment functionalities is considered a platform manager if it is set up to enable buyers to make payments directly through payment methods such as e-wallets, bank cards, payments or transfers via payment accounts, integrated transfer systems, cash-on-delivery (COD), and other legally permitted payment methods.
• An organization with other digital economic activities is considered a platform manager if it is based in Vietnam and acts on behalf of a foreign e-commerce or digital platform provider to pay income to households and individuals from digital content products or services in accordance with laws on information technology.
• Organizations operating e-commerce trading platforms, digital platforms with payment functionalities, and other digital economic activity organizations as specified in Clauses 1 and 2, Article 3 of Decree No. 117/2025/NĐ-CP are collectively referred to as e-commerce platform management organizations.

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