The General Department of Taxation reported that in the first eight months of 2025, state budget revenue from e-commerce and the digital economy reached nearly VND 135 trillion, an increase of 63% compared to the same period last year. Notably, revenue from foreign suppliers grew by 40%.

As of August 20, 2025, total tax revenue collected from organizations and individuals engaged in e-commerce and digital economy activities (including traditional business, e-commerce, and other digital business models) amounted to VND 134.9 trillion, up 63% year-on-year.

Detailed revenue structure:

• 93,000 organizations engaged in e-commerce contributed more than VND 121 trillion in taxes.

• 170 foreign suppliers paid VND 8.71 trillion.

• 918,000 households and individuals doing e-commerce business contributed nearly VND 1.78 trillion.

• Additionally, 156,000 households and individuals filed and paid taxes via the electronic portal, totaling VND 2.04 trillion.

For foreign suppliers – previously considered difficult to manage due to the lack of legal presence in Vietnam – tax compliance has improved significantly. From 2022 to August 20, 2025, tax revenue from this group reached VND 26.149 trillion, broken down as follows:

• 2022: VND 1.85 trillion

• 2023: VND 6.896 trillion

• 2024: VND 8.693 trillion

• First eight months of 2025: VND 8.71 trillion (+40% year-on-year).

This growth reflects the expanding scale of cross-border transactions and demonstrates the effectiveness of the online tax registration, declaration, and payment mechanism for foreign suppliers. At the same time, new tax management policies have created a more transparent and convenient legal framework for enterprises, while enabling tax authorities to control cash flows and reduce revenue losses.

Vietnam is currently regarded as one of the pioneering ASEAN countries in implementing tax collection for foreign suppliers. Under the new regulation effective from July 1, 2025, the value-added tax (VAT) for foreign suppliers increased from 5% to 10%, while the corporate income tax remained at 5%. This mechanism has significantly boosted revenue from cross-border business activities.

In addition to expanding tax collection, the tax authority has tightened management. In the first eight months of 2025, more than VND 759 billion was collected in tax arrears, including:

• 2,734 enterprises subject to arrears totaling VND 703 billion (VND 165 billion VAT, VND 573 billion corporate income tax, VND 1.4 billion special consumption tax).

• 872 households and individuals subject to arrears of VND 56 billion.

It is also noteworthy that from July 1, 2025, e-commerce platforms and digital platforms are required to withhold and remit VAT and personal income tax on behalf of sellers (households and individuals) on the platforms. The tax withholding is applied once an order is successfully confirmed and the buyer completes payment.

To enhance management, the tax authority requires e-commerce platforms and digital intermediaries to leverage data and technology to monitor online transactions, while simplifying administrative procedures to help households and individuals pay taxes more conveniently and prevent tax evasion. The General Department of Taxation has also developed a guideline handbook on electronic tax declaration and payment for business households and individuals.

Minister of Finance Nguyen Van Thang stated that the Ministry continues to improve the legal framework related to e-commerce, clearly defining business models, tax obligations, and management methods. E-commerce platforms are required to withhold and pay taxes on behalf of sellers to ensure transparency and fairness. Households and individuals may authorize platforms to issue e-invoices, while the identification of sellers on social media is also being actively implemented to control income generated from digital platforms.

Alongside legal improvements, the Ministry of Finance is also strengthening tax policy communication through major domestic and international e-commerce platforms to raise awareness and compliance responsibility among taxpayers. The Minister emphasized: “Information technology and artificial intelligence (AI) are being integrated into the tax management system to analyze data, detect fraudulent behaviors early, and support automated and accurate inspection and reconciliation. Technical infrastructure is also being upgraded, with electronic portals for tax declaration and payment being enhanced to be more convenient, transparent, and user-friendly.”

Source: WTCConnect.net