Welcome to Part 4 of the series "Frequently Asked Questions About Tax Obligations on Shopee." In this part, we will explore the types of taxes and fees that sellers on Shopee in Vietnam need to pay.
There are three main types of taxes that you need to pay when doing business on Shopee specifically and on e-commerce platforms in general in Vietnam:
1. Business License Tax:
This is an annual tax applicable to individuals or households doing business in Vietnam. The business license tax rate is determined based on the revenue of the taxpayer. If you are doing business on an e-commerce platform like Shopee, the business license tax is based on your Shopee store's revenue.
Specifically, the business license tax rates are as follows:
- Annual revenue under VND 100 million: Exempt from business license tax.
- Annual revenue from VND 100 million to VND 300 million: VND 300,000.
- Annual revenue from VND 300 million to VND 500 million: VND 500,000.
- Annual revenue over VND 500 million: VND 1,000,000.
2. Value-Added Tax (VAT) & Personal Income Tax:
The rates for Value-Added Tax (VAT) and Personal Income Tax depend on the type of business activity as follows:
- For distribution and sales of goods, the VAT rate is 1% and the Personal Income Tax rate is 0.5%.
- For manufacturing and processing of goods, the VAT rate is 3% and the Personal Income Tax rate is 1.5%.
Additionally, you can refer to the appendix of Circular 40/2021/TT-BTC for applicable tax rates for other business activities.
Notes:
- Sellers need to thoroughly understand the tax and fee regulations when doing business on Shopee to ensure compliance with the law.
- Sellers can contact local tax authorities or consult tax experts for detailed guidance on their tax obligations.
Conclusion:
Understanding the types of taxes and fees when doing business on Shopee is crucial for effective business operations and legal compliance.
Need legal tax support for your business on Shopee? Contact Lameco for free consultation.
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