E-commerce platforms free from filing tax on vendor behalf
E-commerce platforms like Shopee, Tiki or Lazada will not have to file tax on vendors’ behalf and instead only provide authorities with their revenue and other details.
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 taxing vendors’ behalf will increase costs, and that they do not have enough resources to fulfill this task.
Around 100 e-commerce platforms are operating in Vietnam with hundreds of thousands of vendors. In 2020, Shopee had 210,000 vendors and Tiki 8,800, according to tax authorities.