As e-commerce continues to flourish, particularly through livestream sales on social media platforms, tax authorities are rolling out strong measures to ensure transparency and proper tax collection.

1. Comprehensive Review of Livestream Sellers

The General Department Of Taxation has directed tax authorities nationwide to conduct a thorough review of all organizations and individuals engaged in livestream selling. The objective is to accurately identify and catalog all participants in this activity, establishing a clear basis for tax collection in compliance with legal requirements. This review extends beyond major platforms like Facebook, YouTube, and TikTok, encompassing other apps and websites with similar functionalities.

2. Ensuring Fair Taxation

In light of the fact that many individuals and businesses have not fully declared their income from online sales, tax authorities are committed to preventing any potential tax evasion. Cases showing signs of non-compliance or underreporting of income will be subject to strict inspection and audit, with violations addressed promptly. In serious instances, cases may be escalated to law enforcement for investigation and prosecution.

3. Livestreaming as a Trend in E-commerce

According to a NielsenIQ report, 95% of consumers participated in online shopping via livestream channels during the first quarter of this year. The Vietnam E-commerce Association reports around 2.5 million livestream sales sessions per month, involving over 50,000 sellers. This highlights the growing popularity of livestream selling as a new trend in e-commerce. However, this surge also presents challenges for tax management. As a result, tax authorities are developing appropriate mechanisms and policies to ensure that all online transactions are properly declared and taxed.

4. Tax Regulations for Online Sellers

Currently, online sellers earning annual revenues of VND 100 million or more are required to pay value-added tax (VAT) and personal income tax (PIT). Income derived from commissions earned through livestream activities is subject to a progressive tax rate, ranging from 5% to 35%. If commissions are paid to a business household, a 7% tax rate applies, which includes 5% VAT and 2% PIT.

5. Future Measures and Implementation

Looking ahead, tax authorities will continue to refine legal frameworks and work closely with technology platforms to monitor and regulate livestream sales. These efforts are crucial in ensuring that all individuals and businesses participating in the e-commerce sector meet their tax obligations fairly and transparently.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.