Decree No. 117/2025/ND-CP on tax management for business activities on e-commerce platforms and digital platforms of households and individuals.

DECREE

Regulations on tax management for business activities on e-commerce platforms and digital platforms of households and individuals

electronic commerce, digital platform of households, individuals

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Pursuant to the Government Organization Law on February 18, 2025;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Securities Law, the Accounting Law, the Independent Auditing Law, the State Budget Law, the Law on Management and Use of Public Assets, the Tax Administration Law, the Personal Income Tax Law, the National Reserve Law, and the Administrative Violation Handling Law dated November 29, 2024;

Pursuant to the Value Added Tax Law dated June 3, 2008 and the Laws Amending and Supplementing the Value Added Tax Law dated June 3, 2008; the Value Added Tax Law dated November 29, 2024;

Pursuant to the Personal Income Tax Law dated November 21, 2007; the Law Amending and Supplementing the Personal Income Tax Law dated November 22, 2012;

At the proposal of the Minister of Finance;

The Government issues this Decree to regulate tax management for business activities on e-commerce platforms and digital platforms of households and individuals.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates:

1. The scope of responsibility for withholding, paying value added tax and personal income tax on behalf of organizations that manage e-commerce trading platforms, organizations that manage digital platforms with payment functions (including both domestic and foreign organizations) and other organizations engaged in digital economic activities.

2. The methods for organizations managing e-commerce trading platforms, managing digital platforms, and other organizations engaged in digital economic activities to withhold, pay taxes on behalf of others, and declare the amount of tax withheld from transactions conducted through e-commerce platforms and digital platforms of households and individuals.

3. Documentation and procedures for tax declaration, payment, and refund for households and individuals conducting business on e-commerce platforms and digital platforms.

Article 2. Applicability

1. Organizations that manage e-commerce trading platforms, organizations that manage digital platforms with payment functions, and other organizations engaged in digital economic activities are subject to withholding and paying taxes on behalf of others.

2. Resident individuals and non-resident individuals conducting business on e-commerce platforms and digital platforms.

3. Tax administration agencies and related organizations and individuals.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Organizations that manage e-commerce trading platforms, organizations that manage digital platforms with payment functions are platform managers established to allow buyers to make direct payments through payment means such as electronic wallets, bank cards, or payment and transfer via payment accounts, integrated transfer systems, cash-on-delivery (COD), and other payment means as prescribed by law. otherwise in accordance with the provisions of the law.

2. Other organizations engaged in digital economic activities are organizations in Vietnam representing foreign e-commerce platform providers and digital platform providers to remit income to households and individuals from digital information products and services according to laws on information technology.

Organizations that manage e-commerce trading platforms, organizations that manage digital platforms with payment functions, and other organizations engaged in digital economic activities as specified in Clause 1 and Clause 2 of this Article are referred to as e-commerce platform management organizations.

3. E-commerce platforms under this Decree include e-commerce platforms and digital platforms.

4. Resident individuals and non-resident individuals comply with the provisions of the Personal Income Tax Law.

Chapter II
SCOPE OF RESPONSIBILITY, METHODS FOR WITHHOLDING, PAYING TAXES ON BEHALF OF OTHERS, AND DECLARING THE AMOUNT OF TAX WITHHELD BY E-COMMERCE PLATFORM MANAGEMENT ORGANIZATIONS SUBJECT TO WITHHOLDING AND PAYING TAXES ON BEHALF OF OTHERS

WITHHOLDING TAX SUBMISSION AND REPORTING OF THE AMOUNT OF WITHHELD TAX BY

ORGANIZATIONS MANAGING ELECTRONIC COMMERCE PLATFORMS

BELONGING TO THE SUBJECTS OF DEDUCTION, WITHHOLDING TAX

Article 4. Withholding and Payment on Behalf

1. Domestic and foreign organizations managing e-commerce platforms that are withholding agents (including direct owners managing e-commerce platforms or persons authorized to manage e-commerce platforms) shall withhold and pay on behalf the value-added tax due according to the provisions of the Value Added Tax Law for each transaction of goods and services provided by households and individuals engaged in business activities on e-commerce platforms generating revenue within the country.

2. Domestic and foreign organizations managing e-commerce platforms that are withholding agents (including direct owners managing e-commerce platforms or persons authorized to manage e-commerce platforms) shall withhold and pay on behalf individuals residing in the country the personal income tax due according to the provisions of the Personal Income Tax Law for each transaction of goods and services provided by individuals residing in the country engaged in business activities on e-commerce platforms generating revenue both domestically and internationally; shall withhold and pay on behalf non-resident individuals the personal income tax due according to the provisions of the Personal Income Tax Law for each transaction of goods and services provided by non-resident individuals engaged in business activities on e-commerce platforms generating revenue within the country.

Article 5. Time of Withholding and Determination of Amounts to be Withheld

1. Time of Withholding: The organization managing the e-commerce platform specified in Article 4 of this Decree shall withhold the value-added tax and personal income tax due for each transaction of goods and services provided on the e-commerce platform under its management generating revenue immediately upon confirming the successful transaction and accepting payment for the sale of goods and services on the e-commerce platform for households and individuals.

2. The amount of value-added tax and personal income tax to be withheld shall be determined as a percentage (%) of the revenue from each transaction of selling goods and providing services.

a) The percentage rate for calculating value-added tax shall be implemented according to the provisions of the Value Added Tax Law as follows:

a.1) Goods: 1%

a.2) Services: 5%

a.3) Transportation, services related to goods: 3%

b) The percentage rate for calculating personal income tax shall be implemented according to the provisions of the Personal Income Tax Law as follows:

b.1) For resident individuals

b.1.1) Goods: 0.5%

b.1.2) Services: 2%

b.1.3) Transportation, services related to goods: 1.5%

b.2) For non-resident individuals

b.2.1) Goods: 1%

b.2.2) Services: 5%

b.2.3) Transportation, services related to goods: 2%

c) In cases where the organizations managing e-commerce platforms that are withholding agents cannot determine whether a transaction generating revenue from the e-commerce platform is goods or services or the type of service, the determination of the amount to be withheld shall be carried out at the highest percentage rate prescribed in point a of this clause and at the highest percentage rate of services prescribed for resident individuals or non-resident individuals in point b of this clause.

d) The revenue from each transaction of selling goods and providing services is the amount of money received from selling goods and services by households and individuals collected by the organization managing the e-commerce platform. which is collected on behalf by the organization managing the e-commerce platform.

Article 6. Method of Declaration and Payment of Withheld Tax

1. Organizations managing e-commerce platforms shall declare the amount of tax withheld monthly.

In case of canceled transactions or returned goods, the organization managing the e-commerce platform shall offset the tax withheld and paid on behalf of the canceled or returned transaction against the tax to be withheld and paid on behalf of sales transactions of goods and provision of services.

The amount of tax paid on behalf of the organization managing the e-commerce platform is determined by the total tax of sales transactions of goods and provision of services after offsetting with the total tax of canceled or returned transactions of households and individuals (if any).

Domestic organizations managing e-commerce platforms are assigned a separate tax number (a ten-digit tax number) by the tax authority's system for declaration and payment of withheld tax and are not required to submit tax registration documents.

Foreign organizations managing e-commerce platforms are assigned a ten-digit tax number to fulfill their tax obligations arising in Vietnam (if any) as prescribed for foreign suppliers under Circular No. 80/2021/TT-BTC dated September 29, 2021, issued by the Minister of Finance, and this tax number can be used for declaration and payment of the tax withheld from resident households and individuals conducting business on foreign e-commerce platforms.

2. Documents for declaration of withheld tax include:

a) Form 01/CNKD-TMĐT for declaration of withholding tax for households and individuals engaged in business activities on e-commerce platforms, as attached to this Decree;

b) Detailed list of tax withheld for households and individuals engaged in business activities on e-commerce platforms according to Form 01-1/BK-CNKD-TMĐT, as attached to this Decree.

3. Place and deadline for submission of declaration documents and payment of withheld tax:

a) Organizations managing e-commerce platforms shall submit tax declaration documents electronically. The agency receiving and processing the declaration documents is the tax authority managing the organization managing the e-commerce platform.

b) Organizations specified in Article 4 of this Decree shall prepare a detailed list of tax payments according to Form 01/BKNT-TMĐT attached to this Decree and send it to the managing tax authority after completing the payment into the state budget. The deadline for preparing and sending the detailed list of tax payments is the same as the tax payment deadline as stipulated by laws on tax administration.

c) The place and deadline for submission of declaration documents and the place and form of tax payment and the deadline for tax payment shall be carried out in accordance with the provisions of laws on tax administration.

Article 7. Responsibilities of organizations managing e-commerce platforms subject to withholding and paying tax on behalf

1. Registering for use and handling withholding tax certificates for business activities on e-commerce platforms in accordance with the provisions of laws on invoices and certificates.

2. Issuing withholding tax certificates for business activities on e-commerce platforms according to Form 01/CTKT-TMĐT, as attached to this Decree, annually through electronic means for households and individuals.

3. Managing usernames and passwords of accounts issued by the tax authority; retaining transaction data, information, and documents related to the determination of tax payable and tax withheld from households and individuals in accordance with the provisions of laws on tax administration.

4. Withholding tax accurately and fully based on the information provided by households and individuals and in accordance with the provisions of this Decree; being responsible before the law for the accuracy, truthfulness, and completeness of tax declaration documents.

An organization managing an e-commerce platform that has declared information on withheld tax and tax paid on behalf of households and individuals to the tax authority in accordance with this Decree shall not be required to provide household and individual information as prescribed in Government Decree No. 91/2022/NĐ-CP dated October 30, 2022, amending and supplementing some articles of Government Decree No. 126/2020/NĐ-CP dated October 19, 2020, detailing certain provisions of the Law on Tax Administration.

5. Providing other information about business activities on e-commerce platforms at the request of the tax authority in accordance with the provisions of laws on tax administration.

6. Timely refunding the full amount of tax withheld and paid on behalf of households and individuals for canceled or returned transactions.

Chapter III
DOCUMENTS AND PROCEDURES FOR DECLARATION, PAYMENT, AND REFUND OF TAXES OF HOUSEHOLDS AND INDIVIDUALS ENGAGED IN BUSINESS ACTIVITIES ON E-COMMERCE PLATFORMS

Article 8. Documents and procedures for declaration and payment of taxes by households and individuals residing in Vietnam engaged in business activities on e-commerce platforms without payment functions

1. Households and individuals residing in Vietnam engaged in business activities on e-commerce platforms without direct payment functions shall fulfill their obligations to pay value-added tax, personal income tax, special consumption tax, environmental protection tax, natural resources tax, and other revenues payable to the State budget as regulated by tax laws and other relevant laws, through electronic declaration and payment methods. 2. Tax Declaration

a) Households and individuals engaged in business activities on e-commerce platforms shall declare monthly.

b) Households and individuals engaged in infrequent business activities on e-commerce platforms shall declare each time transactions occur.

3. Procedures for registration, declaration, submission of tax declaration documents, and payment

a) Tax declaration documents

The tax declaration form for households and individuals engaged in business activities on e-commerce platforms is Form No. 02/CNKD-TĐMT issued together with this Decree.

b) Procedures for tax registration, deadlines for submitting tax declaration documents, and procedures for payment shall be carried out in accordance with the regulations of tax management laws.

c) The authority responsible for receiving and processing tax declaration documents is the tax authority managing the locality where the household or individual resides (current place of residence/permanent residence/temporary residence).

Article 9. Documents and procedures for declaration and payment of taxes by non-resident individuals paying taxes on e-commerce platforms without payment functions

1. Non-resident individuals engaged in business activities on e-commerce platforms without direct payment functions shall pay value-added tax and personal income tax on goods and services traded on e-commerce platforms at a percentage rate (%) based on turnover as stipulated by the Law on Value-Added Tax and the Law on Personal Income Tax.

2. The percentage rate for calculating value-added tax and the percentage rate for calculating personal income tax shall be implemented according to the provisions of the Law on Value-Added Tax and the Law on Personal Income Tax as follows:

a) Percentage rate for calculating value-added tax

b) Percentage rate for calculating personal income tax

a.1) Goods: 1%

a.2) Services: 5%

a.3) Transportation, services related to goods: 3%

b.1) Goods: 1%

b.2) Services: 5%

b.3) Transportation, services related to goods: 2%

3. Tax Declaration

a) Non-resident individuals subject to the provisions of Clause 1 of this Article shall declare value-added tax on domestic sales and provision of services on e-commerce platforms, personal income tax, and pay taxes to the E-commerce Tax Revenue Office each time transactions occur through electronic means.

b) Non-resident individuals engaged in business activities on e-commerce platforms without payment functions shall register for electronic tax transactions and initial tax registration through tax declaration documents.

4. Procedures for tax declaration and payment

a) Tax declaration documents: The tax declaration form for non-resident individuals conducting business on e-commerce platforms is Form No. 03/CNNN-TMĐT issued together with this Decree.

b) Deadlines for submitting tax declaration documents and payment deadlines shall be carried out in accordance with the regulations of tax management laws.

Article 10. Documents and procedures for refunding taxes

1. In cases where households and individuals have been deducted and paid taxes on behalf of value-added tax and personal income tax by organizations specified in Article 4 of this Decree in accordance with Article 5 of this Decree for transactions occurring during the year but whose annual turnover from all business activities not subject to value-added tax and personal income tax exceeds the threshold, they shall follow the tax management law's regulations to process refunds for overpaid taxes after the e-commerce platform management organization has completed its obligation to declare and pay taxes on behalf of the deducted taxes of households and individuals conducting business on e-commerce platforms for the taxable year.

2. In cases where households and individuals have paid value-added tax and personal income tax for transactions occurring during the year in accordance with Articles 8 and 9 of this Decree but whose annual turnover from all business activities not subject to value-added tax and personal income tax exceeds the threshold, they shall follow the tax management law's regulations to process refunds for overpaid taxes. 3. Application for tax refund: The application for tax refund by households and individuals conducting business on e-commerce platforms is Form No. 03/CNKD-TMĐT issued together with this Decree.

4. The authority responsible for receiving and processing tax refund applications is the tax authority managing the locality where the household or individual resides (current place of residence/permanent residence/temporary residence). Pursuant to this Decree but with annual revenue from all business activities not subject to value-added tax and personal income tax, procedures for refunding excess tax paid shall be carried out in accordance with the legal regulations on tax administration.

3. Documents for requesting a tax refund: The request for tax refund document of households, individuals conducting business on electronic commerce platforms according to Form No. 03/CNKD-TMĐT issued together with this Decree.

4. The agency receiving and processing tax refund applications is the tax authority managing the locality where the household, individual resides (current place of residence/permanent residence/temporary residence).

Chapter IV
IMPLEMENTATION AND EFFECTIVE PROVISIONS

Article 11. Responsibilities of Households and Individuals Engaging in Business Activities on E-commerce Platforms

1. Households and individuals residing who engage in business activities on e-commerce platforms shall be responsible for declaring and paying special consumption tax, environmental protection tax, natural resource tax, and other revenues payable to the State budget as managed by the tax authority in accordance with laws on taxation, laws on tax administration, and related laws.

2. Households and individuals engaging in business activities on e-commerce platforms shall be responsible for providing complete and accurate information on their taxpayer identification number or individual identification number (for Vietnamese citizens); passport number or identification information issued by foreign competent authorities (for foreign citizens), and other mandatory information required by law for sellers in e-commerce transactions to the e-commerce platform management organizations.

3. Provide accurate, complete, and timely information and documents relevant to determining tax obligations for e-commerce platform management organizations subject to withholding and tax payment on behalf, and bear responsibility for fulfilling tax obligations in accordance with this Decree.

4. Households and individuals whose value-added tax and personal income tax have been withheld, declared, and paid on their behalf by e-commerce platform management organizations in accordance with this Decree shall not need to declare and pay value-added tax and personal income tax for their e-commerce business activities that have been withheld and paid on their behalf.

Article 12. Responsibility for Implementation

1. The Minister, Head of a Government Agency shall, based on their assigned functions and tasks, be responsible for implementing this Decree.

2. The Ministry of Finance shall be responsible for guiding and organizing the implementation of measures to support e-commerce platform management organizations subject to withholding and tax payment on behalf as prescribed in this Decree.

3. The Ministry of Industry and Trade shall be responsible for implementing measures to manage all e-commerce business activities and coordinate with the Ministry of Finance to implement measures to support e-commerce platform management organizations subject to withholding and tax payment on behalf in accordance with this Decree.

4. The Director of the General Department of Taxation shall guide the acceptance, inspection, and verification of data to resolve automatic refund procedures through the tax administration information system for households and individuals engaged in e-commerce business activities in accordance with tax management laws; provide information on taxes withheld and paid on behalf by e-commerce platform management organizations to households and individuals via their electronic tax accounts; assist households and individuals in using individual identification numbers instead of taxpayer identification numbers when the taxpayer identification number has been integrated into the individual identification number.

5. The Chairman of the People's Committee of provinces and centrally-administered cities shall direct agencies and units within their jurisdiction to cooperate in implementing this Decree.

Article 13. Effective Date

This Decree takes effect from July 1, 2025.

In cases where legal normative documents cited in this Decree are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement documents./.