The tax payable is determined based on a percentage of revenue. The applicable tax rates for individual businesses are specified in the tax schedule attached to Circular No. 40/2021/TT-BTC, as issued by the Ministry of Finance. Individuals selling goods online are subject to a PIT rate of 0.5% and a VAT rate of 1%. Those earning income from advertisements on digital content services and other services are subject to a PIT rate of 2% and a VAT rate of 5%.
According to tax authorities, 412 e-commerce platforms are currently providing information, reporting over 191,000 sellers with a total transaction value of nearly 72 trillion VND. Additionally, hundreds of thousands of individuals sell goods online via social media platforms such as Zalo and Facebook. However, tax evasion in e-commerce remains sophisticated and complex.
In 2024, the Hanoi tax authority alone forwarded case files to the police for verification and investigation concerning nearly 1,900 taxpayers and received nearly 800 requests from law enforcement agencies for information related to over 2,000 taxpayers suspected of violations.
By the end of 2024, the Hanoi Police Department’s Investigation Agency initiated criminal proceedings against Do Manh Cuong, a 38-year-old resident of Long Bien District, Hanoi, for tax evasion. Cuong registered and used multiple accounts on e-commerce platforms such as Shopee, Tiki, and Lazada to sell mobile phones and accessories. Investigators determined that from 2019 until his detection, his total sales revenue exceeded 160 billion VND, however he concealed his income to evade approximately 2.5 billion VND in taxes.
As of late 2024, the General Department of Taxation has reviewed the tax obligations of 76,428 individuals, uncovering and penalising about 30,000 violators, with total tax arrears and fines exceeding 1.2 trillion VND.
Tax authorities face significant challenges, especially in dealing with individuals deliberately engaging in tax fraud and evasion within the e-commerce sector.
On December 19, 2024, the tax authority launched an electronic portal for household and individual businesses to register, declare, and pay taxes on e-commerce and digital platform transactions. This portal aims to provide an additional, convenient tax compliance channel.
Furthermore, amendments to several laws, including the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Public Asset Management Law, Tax Administration Law, Personal Income Tax Law, National Archives Law, and the Law on Handling Administrative Violations, have established the responsibility of e-commerce platform operators — both domestic and international — to withhold, declare, and remit taxes on behalf of individual sellers. These laws also mandate direct tax declarations for businesses and individuals engaged in e-commerce.
Under this regulation, instead of requiring hundreds of thousands of individuals to file tax returns separately, e-commerce platforms will withhold, declare, and remit taxes on their behalf, reducing administrative costs and promoting the growth of e-commerce. This provision will take effect on April 1, 2025.
In addition to these measures, tax authorities will continue to enhance digital transformation in tax communication, taxpayer support, and public disclosure of major tax fraud and evasion cases.
The tax sector is also working on improving the legal framework, developing detailed regulations for tax management in e-commerce, including mandatory registration, tax declaration, and payment obligations for businesses and individuals, as well as clarifying the responsibilities of e-commerce platforms. Authorities will collaborate with relevant agencies to monitor and inspect high-revenue accounts to promptly detect tax evasion activities.
