Vietnam introduces Deemed-Supplier VAT obligations for online marketplaces July 2026
- Vietnam is adopting a deemed-supplier VAT model that will require domestic online marketplaces to collect, declare, and remit VAT on third-party sellers’ transactions from 1 July 2026. Foreign digital marketplace obligations have been in place
- Platforms—domestic and foreign—will become the VAT remitter for all sales they facilitate where they control both ordering and payment.
- This reform aligns Vietnam with global trends aimed at reducing non-compliance in the digital economy.
Vietnam has taken a decisive step toward tightening the indirect tax treatment of the digital economy. Recent amendments to the Tax Administration Law establish a mandatory VAT and tax-withholding obligation for online platforms, requiring them to collect and remit VAT on sales made by third-party sellers using their infrastructure. The measure applies from 1 July 2026, following approval by an overwhelming majority of the National Assembly.
Shift to platform VAT liability: how the new model may works
The legislative amendment introduces a reallocation of VAT responsibility for e-commerce transactions – although details are unclear. The likely core principle is that where an online marketplace facilitates both order placement and payment, the platform becomes liable to:
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deduct output VAT on the underlying supplies of goods or services;
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submit VAT returns and remit tax directly to the authorities;
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provide transaction-level reporting to support audit trails.
This obligation captures both domestic and foreign-established platform operators.
Scope of digital platform supplies
The rules apply to supplies made by households, individuals, and other merchants using an e-commerce platform that controls the transaction workflow. This includes marketplace transactions involving:
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ordering via the platform interface;
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payment or settlement processed by the platform.
2024 foreign sellers and platforms obligations
Vietnam had already imposed VAT-collection obligations on foreign e-commerce operators for transactions into the country. The new rules go further by requiring platforms to withhold VAT on domestic transactions, meaning sellers—regardless of location—no longer self-account for VAT on in-scope sales. Instead, their settlement proceeds are net of VAT, with the platform filing on their behalf.
Vietnam’s introduction of a deemed-supplier VAT regime marks a significant shift in the taxation of digital commerce. By making platforms the VAT remitter for marketplace transactions, the government aims to secure revenue at the point of transaction and improve compliance across the fast-growing digital economy.
Further technical guidance is expected as implementation rules are developed.
