Tightening online sales tax management: a burden of increased costs, or an opportunity for transparency and growth? Perspectives from those doing business in the digital environment.
On May 15, 2025, the Tax Department sent an open letter to businesses, business households and individuals operating e-commerce, recommending compliance with the principle of “Taxpayers self-declaring, self-paying, and self-responsible.” The tax authority affirmed that it will continue to promote and support, but also strengthen supervision, inspection and strict handling of tax violations.
The open letter was issued in the context of tightening tax management on online sales activities, which is creating many conflicting opinions. Some people see this as an opportunity for more systematic and transparent development; while others are concerned that the increased costs will become a burden.
Mixed opinions from business people
According to Circular 40/2021/TT-BTC, individual business households with revenue from e-commerce must pay 1% value-added tax (VAT) and 0.5% personal income tax (PIT), not to mention e-commerce platform fees (usually ranging from a few percent to 20%). This makes many online sellers feel pressured, especially in the context of declining consumption.
Vietnamese people will spend nearly 900 billion VND on online shopping in 2024 (according to e-commerce data company Metric)
Ms. VHH, who runs a warehouse and many collaborators specializing in selling “hand-carried” goods in Ho Chi Minh City, said: “I have had to pay all kinds of customs clearance fees for goods. For the past two years, consumer demand has decreased, sales have gone down, and having to pay taxes will continue to cause difficulties, easily leading to the closure of operations.”
Ms. NG – another online seller in Ho Chi Minh City – shared: “The tax rate is 1.5%, which sounds small, but when added together, it affects profits. With a revenue of 100 million VND, we have to pay 1.5 million VND per month. We are forced to increase prices and cut costs to compensate for this.”
However, many people see opportunities in tax compliance.
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Mr. Pham Hoang Nam, an online business owner in Hanoi, said that last month he paid more than 9.7 million VND in taxes: “Paying taxes makes me feel more secure and less worried about being fined later. It is also a competitive advantage. When customers see that the shop pays taxes in full, they trust it more because there is control. According to the Ministry of Industry and Trade, last year, up to 70% of online orders that violated quality came from unregistered shops that evaded taxes.”
For Ms. Nguyen Lan Anh – the owner of an online sales system in many provinces and cities – tax declaration is considered a “safe ticket” for the future: “It helps me avoid legal risks, build credibility with customers, shipping companies, and e-commerce platforms. To cooperate with large partners, I need tax transparency.”
In addition, tax compliance also helps businesses easily access capital. According to Decision 2568/QD-NHNN of the State Bank, businesses with clear tax records can borrow capital at interest rates 2-3% lower than usual.
Expect support from the floor and policy
More than 24,500 e-commerce business cases were handled for tax violations
The tax authorities have detected and handled more than 24,500 cases of individuals, business households and enterprises operating in the field of e-commerce violating tax obligations. The main violations include:
– No tax code registration.
– Incomplete revenue declaration.
– Late payment or failure to pay taxes as prescribed.
The total amount of arrears and fines is up to 469 billion VND.
Tightening e-commerce tax management certainly creates changes. But it is an inevitable trend to build a more transparent, equal and sustainable business environment – where “honest” business people are protected and develop according to the law.
According to the Tax Department, in the first 4 months of 2025, tax revenue from organizations and individuals with e-commerce business activities reached 42,600 billion VND, an increase of 10.4% over the same period in 2024. This source of revenue makes an important contribution to the national budget in the fields of health and education. At the same time, according to Resolution 43/2022/QH15, online business households with revenue of less than 100 million VND/year will continue to be exempted from tax until the end of 2025.
The government has also digitized the tax payment process: The National Public Service Portal allows online tax code registration in just 10 minutes, synchronizing tax codes with personal bank accounts (according to Decision 1466/QD-BTC). The General Department of Taxation also cooperated with Facebook and TikTok to provide free training to tens of thousands of online businesses on tax declaration via livestream or live seminars.
However, many businesses still expect more support. Ms. Lan Anh suggested: “E-commerce platforms such as Shopee, Lazada or Tiki should directly support tax declaration or integrate tax payment tools into the system. This will help sellers fulfill their obligations more easily.”
Mr. Nam (Hanoi) also hopes that the tax industry will soon implement the mechanism for trading floors to deduct tax at source and pay on behalf of sellers as announced from April 1, 2025, but so far it has not been implemented.
A common suggestion shared by many businesses is that e-commerce platforms should reconsider their fees, because the current fees of a few percent to 20% are quite high, putting great pressure on small retailers./.