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Shopee and Other Platforms Will Declare and Pay Taxes on Behalf of Sellers
Leo 03 Dec 2024 11:38EN
It is learned that on December 2, the Vietnamese National Assembly passed an amendment to the Tax Management Law, stipulating that from April 1, 2025, e-commerce platforms and digital platform managers with payment functions will be responsible for withholding and paying taxes for sellers operating on their platforms.
The amendment received nearly 93% of votes last Friday, adding nine new clauses requiring domestic and foreign e-commerce platforms and digital service providers to declare and pay taxes for sellers on their platforms.
If the seller does not meet the conditions for the platform to withhold taxes, they must register, declare and pay taxes on their own. The Vietnamese government said it will issue a detailed tax declaration guide to clarify the specific responsibilities of the platform and sellers in tax declaration.
According to the revised bill, even if the seller does not have a permanent establishment in Vietnam, the platform still needs to assist in fulfilling the registration, declaration and tax obligations. In order to comply with international tax trends, the amendment deleted the wording "no permanent establishment" in the original text, aiming to improve the fairness and transparency of tax management and ensure that all e-commerce transactions can be conducted in a fair environment.
Previously, e-commerce platforms such as Shopee, Lazada and TikTok Shop were only responsible for providing information to the tax authorities, and sellers directly filed tax returns.
With the implementation of the new law, e-commerce platforms will bear more tax filing responsibilities, and the State Administration of Taxation will provide information technology support to help platforms file and pay taxes smoothly.
The amendment received nearly 93% of votes last Friday, adding nine new clauses requiring domestic and foreign e-commerce platforms and digital service providers to declare and pay taxes for sellers on their platforms.
If the seller does not meet the conditions for the platform to withhold taxes, they must register, declare and pay taxes on their own. The Vietnamese government said it will issue a detailed tax declaration guide to clarify the specific responsibilities of the platform and sellers in tax declaration.
According to the revised bill, even if the seller does not have a permanent establishment in Vietnam, the platform still needs to assist in fulfilling the registration, declaration and tax obligations. In order to comply with international tax trends, the amendment deleted the wording "no permanent establishment" in the original text, aiming to improve the fairness and transparency of tax management and ensure that all e-commerce transactions can be conducted in a fair environment.
Previously, e-commerce platforms such as Shopee, Lazada and TikTok Shop were only responsible for providing information to the tax authorities, and sellers directly filed tax returns.
With the implementation of the new law, e-commerce platforms will bear more tax filing responsibilities, and the State Administration of Taxation will provide information technology support to help platforms file and pay taxes smoothly.
