E-commerce platforms free from filing tax on vendor behalf

Every quarter the platforms will need to submit vendor details including name, tax ID, personal ID, address, phone number and revenue, according to a new decree.

This means a previous proposal by tax authorities to make these platforms pay tax on behalf of their vendors was not approved, with vendors instead responsible for their own tax payments.

Insiders since last year have voiced concern over the proposal, saying that filing tax on vendors’ behalf will increase costs, and that they do not have enough resources to fulfill this task.

There are around 100 e-commerce platforms operating in Vietnam with hundreds of thousands of vendors. In 2020, Shopee had 210,000 vendors and Tiki 8,800, according to tax authorities.