In 2025, with the promulgation of Decree No. 117/2025/ND-CP, the procedures for tax refunds for relevant entities have been more clearly and rigorously defined to ensure transparency, fairness, and convenience during the fulfillment of tax obligations. Understanding the proper refund procedures not only helps business operators protect their lawful rights and interests but also contributes to improving the efficiency of tax administration in the digital economy. The following article by Viet An Law shall provide a detailed presentation on the procedures for e-commerce business tax refund procedures in Vietnam.
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Business tax on e-commerce platforms refers to the taxes that individuals or household businesses are required to pay when selling goods or providing services through platforms such as Shopee, Lazada, Tiki, TikTokshop, etc. From 2025 onward, under Decree No. 117/2025/ND-CP, tax administration in this sector has become more stringent to ensure fairness and transparency in the digital business environment. Specifically, online sellers shall be subject to two main types of tax:
The new point is that starting from July 1, 2025, e-commerce platforms shall be responsible for withholding and remitting taxes on behalf of sellers upon confirmation of successful transactions. This simplifies procedures for sellers but also requires them to fully disclose identification information and ensure transparency in their business operations.
Procedures for e-commerce business tax refund procedures in Vietnam
Pursuant to clause 03, article 10 of Decree No. 117/2025/ND-CP, the tax refund dossier shall comprise a written request for tax refund submitted by the individual or household engaged in business activities on e-commerce platforms, prepared according to Form No. 03/CNKD-TMDT issued together with this Decree.
Pursuant to clause 04, article 10 of Decree No. 117/2025/ND-CP, the authority responsible for receiving and processing the tax refund dossier shall be the tax office managing the locality where the individual or household resides (current residence/temporary residence/permanent residence).
Cases requiring the implementation of e-commerce business tax refund procedures in Vietnam in 2025
In this case, the entities in question are either the direct owners managing the e-commerce platform or persons authorized to manage the platform, as specified under Article 04 of Decree No. 117/2025/ND-CP. These refer to organizations managing e-commerce platforms, both domestic and foreign, that fall under the category of entities responsible for withholding and remitting taxes on behalf of others.
When such entities withhold and pay value-added tax and personal income tax on behalf of sellers for transactions arising within the year, but the total annual revenue of such household or individual’s business activities is deemed not subject to value-added tax and personal income tax, the procedures for tax refund shall be carried out pursuant to tax administration laws regarding the overpaid tax amount, after the e-commerce platform management organization has fulfilled its obligation to declare and pay on behalf of the household or individual the tax amounts already withheld for the relevant tax year.
This category applies to those conducting business on e-commerce platforms without integrated payment functions as defined under articles 08 and 09 of this Decree, and who are required to directly pay value-added tax and personal income tax for transactions occurring throughout the year. Where the total annual revenue of their business activities is considered not subject to value-added tax and personal income tax, they shall follow tax refund procedures in accordance with the tax administration laws applicable to the overpaid amount.
Forms of tax refund: Individuals and household businesses may select one of the following refund methods
For cases eligible for refund before examination, within no later than six (06) working days from the date the tax authority issues a notice of acceptance of the dossier and the timeline for dossier resolution, the tax authority must issue a decision on the tax refund for the taxpayer, or issue a notice transferring the taxpayer’s dossier for pre-refund examination if subject to the provisions of clause 02, article 73 of the Law on Tax Administration 2019, or notify the taxpayer of non-refund if the dossier does not meet the refund conditions.
In cases where the information declared in the refund dossier differs from the information managed by the tax authority, the tax authority shall issue a written request for explanation and supplementary information from the taxpayer. The period for explanation and supplementation shall not be included in the time for processing the tax refund dossier.
For cases subject to pre-refund examination, no later than forty (40) days from the date the tax authority issues a written notice of acceptance of the dossier and the timeline for dossier resolution, the tax authority must issue a decision to refund tax to the taxpayer or to deny the refund if the dossier fails to meet the conditions.
Understanding and properly implementing the tax refund procedure not only helps business operators protect their legitimate rights but also demonstrates legal compliance and contributes to the establishment of a fair and sustainable e-commerce environment. Viet An Law has provided a detailed presentation on the business tax refund procedure on e-commerce platforms in 2025. For inquiries, please contact us for support.
