{"id":2896,"date":"2021-11-05T09:09:32","date_gmt":"2021-11-05T02:09:32","guid":{"rendered":"https:\/\/pl-partners.vn\/?p=2896"},"modified":"2023-01-13T16:45:03","modified_gmt":"2023-01-13T09:45:03","slug":"taxes-to-be-paid-for-online-sales","status":"publish","type":"post","link":"https:\/\/pl-partners.vn\/en\/taxes-to-be-paid-for-online-sales\/","title":{"rendered":"Taxes to be paid for online sales"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #282828;\"><span style=\"color: #ed1c24;\"><strong><em><span style=\"text-decoration: underline;\">Question:<\/span><\/em> <\/strong><\/span>Dear lawyer, due to staying at home to take care of my children, I am not able to go to work. As a result, I am making a plan to sell online in an individual business form to earn extra income. I am wondering if online businesses need to pay tax. And is it mandatory to set up a company? Hope to receive answers from you soon. Thank you.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\"><span style=\"text-decoration: underline; color: #ed1c24;\"><em><strong>Answer:<\/strong><\/em><\/span> PL&amp;Partners would like to thank you for trusting and sending questions to us. For your questions, we would like to reply as follows:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">Online business in the form of business households, individual doing business does <strong>not need to set up an enterprise.<\/strong><\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">N\u1ed9i dung b\u00e0i vi\u1ebft<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pl-partners.vn\/en\/taxes-to-be-paid-for-online-sales\/#DO_HOUSEHOLDS_AND_INDIVIDUALS_DOING_BUSINESS_ONLINE_HAVE_TO_PAY_TAX\" title=\"DO HOUSEHOLDS AND INDIVIDUALS DOING BUSINESS ONLINE HAVE TO PAY TAX?\">DO HOUSEHOLDS AND INDIVIDUALS DOING BUSINESS ONLINE HAVE TO PAY TAX?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pl-partners.vn\/en\/taxes-to-be-paid-for-online-sales\/#1_License_fee\" title=\"1. License fee.\">1. License fee.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pl-partners.vn\/en\/taxes-to-be-paid-for-online-sales\/#2_Personal_Income_Tax_PIT_and_Value_Added_Tax_VAT\" title=\"2. Personal Income Tax (PIT) and Value Added Tax ( VAT)\">2. Personal Income Tax (PIT) and Value Added Tax ( VAT)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pl-partners.vn\/en\/taxes-to-be-paid-for-online-sales\/#PL_AND_PARTNERS_LAW_FIRM\" title=\"PL AND PARTNERS LAW FIRM\">PL AND PARTNERS LAW FIRM<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"DO_HOUSEHOLDS_AND_INDIVIDUALS_DOING_BUSINESS_ONLINE_HAVE_TO_PAY_TAX\"><\/span><span style=\"color: #003366;\"><strong>DO HOUSEHOLDS AND INDIVIDUALS DOING BUSINESS ONLINE HAVE TO PAY TAX?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">Basically, when doing business, paying taxes is required and there is no exception for online business. However, not all cases are subject to tax payment.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\">For business households and individuals doing business\u00a0having turnover from production and business activities in the calendar year of VND 100 million or less, they do not have to pay Value Added Tax (VAT) and Personal Income Tax (PIT) in accordance with the Law on VAT and PIT.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">Thus, for doing business online, you are obliged to pay tax if your <strong>turnover from selling online is GREATER THAN VND 100 million\/ calendar year.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">More specifically, 03 types of taxes to be paid include:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_License_fee\"><\/span><strong><span style=\"color: #ed1c24;\">1. License fee.<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">This fee is paid annually. The fee payment level of an individual doing business online is determined based on the total turnover in a calendar year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">Pursuant to Clauses 2 and 3, Article 1 of Circular 65\/2020\/TT-BTC, individuals are exempt from license fee for the first year from the date of official commencement of production\/business. From the second year (2nd) from the establishment year, the annual license fee payment rate of individuals business is regulated as follows:<\/span><\/p>\n<table style=\"width: 100%; background-color: #f7f0f0;\" border=\"1\/2pt\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 48.4219px;\"><span style=\"color: #282828;\"><strong>No<\/strong><\/span><\/td>\n<td style=\"text-align: center; width: 402.453px;\"><span style=\"color: #282828;\"><strong>Turnover<\/strong><\/span><\/td>\n<td style=\"text-align: center; width: 186.125px;\"><span style=\"color: #282828;\"><strong>Payment rate<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 48.4219px; text-align: center;\"><span style=\"color: #282828;\">1<\/span><\/td>\n<td style=\"width: 402.453px;\"><span style=\"color: #282828;\">From VND 100,000,000\/year or less<\/span><\/td>\n<td style=\"width: 186.125px;\"><span style=\"color: #282828;\">Exemption<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 48.4219px; text-align: center;\"><span style=\"color: #282828;\">2<\/span><\/td>\n<td style=\"width: 402.453px;\"><span style=\"color: #282828;\">Over VND 100,000,000 to 300,000,000\/year<\/span><\/td>\n<td style=\"width: 186.125px;\"><span style=\"color: #282828;\">VND 300.000\/year<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 48.4219px; text-align: center;\"><span style=\"color: #282828;\">3<\/span><\/td>\n<td style=\"width: 402.453px;\"><span style=\"color: #282828;\">Over VND 300,000,000 to 500,000,000\/year<\/span><\/td>\n<td style=\"width: 186.125px;\"><span style=\"color: #282828;\">VND 500.000\/year<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 48.4219px; text-align: center;\"><span style=\"color: #282828;\">4<\/span><\/td>\n<td style=\"width: 402.453px;\"><span style=\"color: #282828;\">Over VND 500,000,000\/year<\/span><\/td>\n<td style=\"width: 186.125px;\"><span style=\"color: #282828;\">VND 1.000.000\/year<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\">The turnover serving as the basis for determining license fee rates applicable to individuals is the total assessable turnover in the preceding year of the production\/business activities.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\">Individuals doing business are not required to submit license fee declaration dossier. Tax authority shall base on tax declaration dossier and tax administration databases to determine the turnover as a basis for payment of license fee and notify payers to implement Article 13 of Decree 126\/2020\/ND-CP (according to point b, Clause 1, Article 10 of Decree 126\/2020\/ND-CP).<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Personal_Income_Tax_PIT_and_Value_Added_Tax_VAT\"><\/span><span style=\"color: #ed1c24;\"><strong>2. Personal Income Tax (PIT) and Value Added Tax ( VAT)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">Similar to license fee, individuals doing business having <strong>turnover of over VND 100,000,000\/year<\/strong> are obliged to pay PIT and VAT.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\">Pursuant to Clause 3, Article 10 of Circular 40\/2021\/TT-BTC, the tax payable is determined as follows:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>VAT payable = Turnover subject to VAT x VAT rate<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>PIT payable = Turnover subject to PIT x PIT rate<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828; font-size: 14.4px;\"><strong>Where:<\/strong><\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #282828; font-size: 14.4px;\">VAT rate and PIT rate are applied according to Circular 40\/2021\/TT-BTC. Specifically, your online sales are considered as distribution and supply activities, therefore, the VAT rate and the PIT rate are 1% and 0.5% respectively.<\/span><\/li>\n<\/ul>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"PL_AND_PARTNERS_LAW_FIRM\"><\/span><span style=\"color: #ed1c24;\"><strong>PL <\/strong><strong>AND<\/strong> <strong>PARTNERS<\/strong><strong> LAW FIRM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #282828;\"><span style=\"color: #000000;\"><em><strong>Head<\/strong><strong>quarters<\/strong><strong>:<\/strong><\/em><\/span> <span style=\"color: #000000;\">46<sup>th<\/sup> Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam<\/span><\/span><\/p>\n<p><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>O<\/strong><strong>ffice:<\/strong><\/span><\/em> <span style=\"color: #000000;\">Lot 1.16 Viva Riverside, 1472 Vo Van Kiet, Ward 3, District 6, HCMC<\/span><\/span><\/p>\n<p><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>Hotline:<\/strong><\/span><\/em> <span style=\"color: #000000;\">093.1111.060<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Email:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"http:\/\/info@pl-partners.vn\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">info@pl-partners.vn<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Facebook:<\/em><\/strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.facebook.com\/PLLaw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">www.facebook.com\/PLLaw<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Website:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"https:\/\/pl-partners.vn\/\"><em>www.PL-PARTNERS.vn<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.hoidapluat.net\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.HOIDAPLUAT.net<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.thutucphaply.org\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.THUTUCPHAPLY.org<\/em><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question: Dear lawyer, due to staying at home to take care of my children, I am not able to go to work. As a result, I am making a plan to sell online in an individual business form to earn extra income. I am wondering if online businesses need to pay tax. And is it [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":2900,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[168],"tags":[],"class_list":["post-2896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-law-focus-tdl"],"_links":{"self":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/2896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/comments?post=2896"}],"version-history":[{"count":0,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/2896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media\/2900"}],"wp:attachment":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media?parent=2896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/categories?post=2896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/tags?post=2896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}