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E-commerce platforms free from filing tax on vendor behalf

By Rajiv MenonVietnam
1 min read
Vietnam Ecommerce
Vietnam Ecommerce
In this article (4)

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.

Questions & Answers

Q.

What information will e-commerce platforms now need to provide to authorities?

A.

Platforms must submit vendor details including their name, tax ID, personal ID, address, phone number, and revenue. This information needs to be provided to the authorities on a quarterly basis.

Q.

Why did e-commerce platforms object to the previous proposal to file tax on behalf of vendors?

A.

Insiders raised concerns that paying tax on behalf of vendors would significantly increase costs for platforms. They also stated that they lacked the necessary resources to manage such a task effectively.

Q.

How many vendors did Shopee and Tiki have in 2020?

A.

In 2020, Shopee had 210,000 vendors operating on its platform. Tiki, another e-commerce platform, had 8,800 vendors during the same period, according to tax authorities.

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