VIETNAM: E-Commerce Transaction Tax Postponed for Five Months
02 August 2021
Proposals to tax e-commerce sites have been pushed back by five months in order to give the industry more time to ensure compliance with the new rules, especially with regard to data connectivity. In line with this, the implementation of the regime has been re-timetabled from 1 August 2021 to 1 January 2022.
Vietnam prioritised tightening the tax rules for e-commerce platforms in response to many such operators looking to evade their liability by diverting their profits into lower-tax jurisdictions. This has seen the country’s Ministry of Finance looks to levy a tax of 1.5% on all e-commerce sellers with annual revenues of VND100 million (US$4,358) or more, which also requiring such vendors as Shopee, Lazada and Vietnam’s own Tiki to withhold taxes for sellers on their platforms every time a sale is made.
- Southeast Asia