The General Department of Taxation has instructed local tax departments to inspect all organizations and individuals selling goods via livestreams on platforms such as YouTube, Facebook, and TikTok. This involves conducting on-site tax inspections for those showing signs of tax risks.
These entities are required to closely coordinate with relevant authorities, and tax agencies will transfer cases to the police if there are indications of intentional tax law violations.
Local tax departments are also instructed to collaborate and implement synchronized solutions to strengthen the management of high-income individuals and organizations involved in livestream selling.
The tax authority will inspect 100% of livestream sellers.
This inspection directive comes as part of tightening control over e-commerce to prevent tax losses. In the past, many organizations and individuals selling goods online, including through livestreams, have been inspected and subjected to tax arrears collection due to non-declaration and non-payment of taxes.
According to data from NielsenIQ, 95% of online customers made purchases through livestream channels in the first quarter. On average, there were 2.5 million livestream selling sessions per month, with the participation of over 50,000 sellers, as reported by the Vietnam E-Commerce Association.
The General Department of Taxation reported that in the first six months, nearly 43,000 businesses and individuals were inspected for tax declaration and payment. This group paid nearly VND 9,980 billion, an increase of about VND 3,480 billion compared to the same period last year. The tax authorities also handled 4,560 cases of violations, collecting nearly VND 300 billion in back taxes and fines.
According to current regulations, online sellers, including livestream sellers, are required to pay value-added tax (VAT) and personal income tax on a progressive scale if their annual revenue reaches VND 100 million or more.
If the taxpayer is a business household or an individual business, they pay a 7% tax on the commission received from the brand (including 5% VAT and 2% personal income tax).
If the individual is not registered as a business, they are considered an employee of the brand and pay personal income tax according to the progressive scale of 5-35%. The brand temporarily withholds 10% of the commission as tax before paying the individual, remitting it to the state budget, and the individual is responsible for self-declaration and tax finalization with the tax authority.
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