How should e-commerce sellers declare taxes?

According to statistics from the Vietnam E-commerce Association (VECOM), the growth rate of e-commerce in Vietnam is projected to increase by 25% in 2025, the fastest among ASEAN countries, ranking at the top of the region with a market size of over 32 billion USD.

Some major e-commerce sites in Vietnam. Illustrative photo: Ngoc Lien

The majority of business accounts on e-commerce platforms such as Shopee, Facebook, and TikTok Shop are household businesses and individual business owners (collectively referred to as HBs), many of whom generate high revenue. Consequently, the tax declaration process under the regulations, taking effect in 2026, is attracting significant attention from these HBs.

How should multi-channel businesses declare taxes?

At a recent online seminar between tax authorities and HBs nationwide, many HBs raised questions about tax declaration procedures for sellers on e-commerce platforms.

Tran Thi Huynh Tho, an HB in Tran Bien ward, stated that she currently sells fashion clothing on TikTok Shop and Facebook, with a total annual revenue exceeding 500 million VND. She noted that platforms had already deducted taxes during transactions, so she was unsure whether she needed to register and declare taxes herself for the first 2026 declaration period and, if so, how to proceed.

Many HBs have raised questions about how to handle returned orders, such as when goods are damaged upon receipt or when customers refuse to accept them after invoices have already been issued. They are unsure how to declare and process these cases in compliance with regulations. Similarly, others are concerned about how to declare taxes when operating across multiple platforms (both offline and online) and various sales channels. Given current regulations, most HBs want to ensure compliance and avoid errors caused by a lack of understanding that could affect their business operations.

Le Thanh Van, owner of an eatery in Trang Dai ward, said that, in addition to direct sales, she also sells online via Facebook. Recently, information about tax declarations and new tax-related regulations has prompted her to look into the matter quite carefully. Van shared, "I want to comply properly, pay taxes fully so that my business runs smoothly and I can avoid unnecessary violations caused by lack of knowledge.”

Addressing the concerns of HBs at the seminar on “Solutions to help HBs declare taxes correctly, ensure compliance, and develop sustainably," Nguyen Thi Thu Ha from the Policy Department of the Tax Department clarified that for HBs operating on an online platform with annual revenue exceeding 3 billion VND, the platform has already withheld taxes, so the HB does not need to declare taxes. However, at the end of the year, if the total revenue over 12-month period exceeds 3 billion VND, the HBs must still perform personal income tax finalization using the method (taxable revenue × tax rate). Therefore, although tax withholding and declaration is the platform's obligation, to protect their rights during the year-end personal income tax finalization, HBs should still prepare an inventory list to submit to the tax authority. Ha also recommended that household businesses contact local tax offices directly for specific support, ensuring they comply properly with tax regulations.

Creating a transparent e-commerce business environment

According to preliminary statistics from VECOM, Vietnam currently has over 5 million sellers, including online HBs. Last year, the total transaction value of the four largest e-commerce platforms in Vietnam, namely Shopee, TikTok, Lazada, and Tiki, exceeded 429 trillion VND, with over 2 billion orders.

In 2025, total tax revenue collected by the Dong Nai Tax Department from e-commerce activities reached nearly 200 billion VND, including more than 163 billion VND from enterprises and more than 35 billion VND from individuals.

To ensure the sustainable development of e-commerce, Bui Trung Kien, Vice Chairman of VECOM, believes that Vietnam's e-commerce will transition to a phase of sustainable growth from 2026 to 2030. Consequently, in recent years, a series of policies, legal regulations, and decrees have been issued and are relatively complete, most notably the recent tax policies for e-commerce. Furthermore, with the current livestreaming trend, e-commerce is even shifting from traditional models like Shopee, Lazada, and Tiki toward social entertainment models that integrate commercial transactions. Simultaneously, the rate of citizens participating in online shopping is increasing sharply.

To build a synchronously operating ecosystem, the VECOM representative stated that e-commerce platforms must establish operational standards and connect sellers with the market. Currently, the Vietnam E-commerce and Digital Economy Agency (Ministry of Industry and Trade) and regulatory bodies have reached a consensus with major platforms to set standards for goods, quality, and payment terms. Regarding finance, close collaboration with payment intermediaries is required to manage, monitor, and track cash flow conversions transparently and accurately.

Sharing about tax declaration in e-commerce, Mai Son, Deputy Director of the Dong Nai Tax Department, noted that for e-commerce platforms with ordering and online payment functions, the platform is responsible for withholding and paying taxes on behalf of the HBs. Conversely, for traditional channels or platforms without payment functions, the HBs must handle tax declarations themselves.

By year-end, HBs must consolidate total revenue from all sources. When total revenue exceeds 3 billion VND, tax is calculated on revenue after expenses are deducted. In such cases, HBs only need to pay the shortfall after deducting the tax that the platforms have already paid on their behalf. If the amount already paid exceeds the amount payable, HBs will be eligible for a tax refund in accordance with regulations.

By Ngoc Lien - Translated by Minh Hong, Minho