Vietnam considers raising tax threshold amid e-commerce growth

The Vietnamese Ministry of Finance is considering a proposal to increase the revenue threshold for business households and individuals to qualify for simplified tax calculation methods. The proposal suggests raising the limit from 3 billion VND to 10 billion VND per year. This move aims to reduce compliance costs, such as accounting, invoicing, and documentation requirements, for businesses that lack the resources for professional accounting services.

Simultaneously, the e-commerce sector in Vietnam is experiencing rapid growth. Data from Metric indicates that during the second quarter, an average of 420 new shops joined e-commerce platforms daily, with over 520,000 active shops in total. Sales on major platforms including Shopee, TikTok Shop, Lazada, and Tiki reached over 290 trillion VND in the first half of the year, a 44.1% increase compared to the same period last year.

Tax authorities are intensifying oversight of online sellers by cross-referencing data from multiple sources, including e-commerce platforms, electronic invoices, banks, payment intermediaries, and shipping companies. Authorities emphasize that even if platforms withhold taxes on behalf of sellers, individuals must still fulfill all legal tax obligations, including registration and revenue reporting.