Starting 1/7, e-commerce platforms are responsible for withholding and remitting taxes on behalf of individual business households, according to a government decree. This new regulation impacts millions of small-scale online sellers and changes how platforms operate, while also requiring the establishment of a legal framework that is both comprehensive and feasible in a dynamic ecosystem like e-commerce.

In this context, on 23/7, the e-commerce platform Shopee organized the workshop "Expert Q&A on Tax Management and Enforcement on E-commerce Platforms," inviting representatives from the E-commerce Tax Sub-department and Shopee Vietnam's Finance department to engage directly with the seller community. The event attracted a large number of Shopee sellers, both in person and online, reflecting the practical concerns of the business community at the start of the new policy's implementation.

Experts sharing at the "Expert Q&A on Tax Management and Enforcement on E-commerce Platforms" workshop, 23/7. Photo: Shopee

Experts sharing at the "Expert Q&A on Tax Management and Enforcement on E-commerce Platforms" workshop, 23/7. Photo: Shopee

One of the decree's key changes clarifies the responsibility of e-commerce platforms to withhold, declare, and remit taxes on the income of business households and individuals. Previously, individual sellers were responsible for declaring and paying their own taxes. Now, the e-commerce platform will withhold and remit taxes at the time a transaction is confirmed as successful and payment is accepted. This requires platforms like Shopee not only to invest in upgrading their technology systems, but also to proactively share information and support sellers in understanding and complying with tax regulations. This is an important transition, contributing to the modernization of tax administration in e-commerce, ensuring transparency and convenience for taxpayers.

At the workshop, the tax authorities and Shopee representatives dedicated a significant amount of time to explaining the core concepts of Decree 117, clarifying the roles, obligations, and responsibilities of sellers and e-commerce platforms in tax declaration, withholding, and remittance. Many practical questions were raised: "Who is subject to tax withholding by the platform?", "How is the legal boundary between a business household and an enterprise defined?", "How to handle refunds and returns after a transaction has been confirmed as successful?".

Numerous other concerns related to providing identification information and filing taxes without input invoices were also discussed. Some situations lacked specific precedents. However, the spirit of "solving problems where they arise" was evident in the exchange as tax authority representatives answered questions and provided guidance tailored to each specific case.

Tran Trong Ninh, Senior Specialist at the E-commerce Tax Sub-department, praised Shopee's proactive and timely response in implementing the new policy. "The collaborative organization of these workshops today will contribute to putting the policy into practice transparently and effectively," Ninh said.

Tran Trong Ninh, Senior Specialist at the E-commerce Tax Sub-department (right) answering sellers' questions. Photo: Shopee

Tran Trong Ninh, Senior Specialist at the E-commerce Tax Sub-department (right) answering sellers' questions. Photo: Shopee

A notable change observed at the workshop wasn't in the decree's content, but in how sellers approached the policy. From initial apprehension, many began actively seeking information and asking specific questions related to their business activities. Truong Hai, owner of Yumi's Mom Shop, shared: "Before, the mere mention of taxes worried me because I wasn't sure if I was doing things right. But thanks to this workshop, I understand more about the obligations and rights of sellers. The clear and easy-to-understand guidance from Shopee helps me operate with confidence, without the previous sense of uncertainty."

Le Si Dung, a cosmetics seller, also considered this an opportunity for sellers like himself to have their questions answered in relation to real-world situations. He not only gained a clear understanding of the new regulations, but also learned how to manage taxes more transparently and effectively, especially as online businesses become increasingly professional.

Sellers interacting during the workshop. Photo: Shopee

Sellers interacting during the workshop. Photo: Shopee

For Shopee, the 23/7 workshop is part of a series of activities connecting sellers with relevant authorities to clarify information about policies and related decrees. Since May of this year, the platform has required updates to individual tax codes, restructured identification data, and invested in a real-time tax reporting system. In addition, numerous instructional materials, videos, FAQs, and support hotlines have been deployed on Shopee Academy, seller channels, and social media communities.

To bridge the gap between tax authorities and the seller community, Shopee has proactively implemented extensive communication activities, both online and offline workshops, to disseminate the new tax policy in an accessible and timely manner. "These activities help sellers gradually grasp the information and understand how to comply correctly. Our support team will always be there, ready to assist throughout the transition and application of the new regulations," a Shopee representative affirmed.

Furthermore, the representative stated that to ensure accuracy and efficiency in tax management and reporting, the platform has proactively focused resources on investing in technology and data management systems, software, and management tools to upgrade information processing procedures, minimize errors, and perfect the reporting system transparently, providing comprehensive information to both tax authorities and sellers.

The Dan