The General Department of Taxation of Vietnam has instructed local tax authorities to verify and compile a comprehensive list of organizations and individuals who sell goods via livestreams within their jurisdictions.

Online shopping has become popular in Vietnam. Photo: Tran Dung/The Hanoi Times

In a document sent to provincial tax departments, the tax authorities requested thorough scrutiny of all organizations and individuals conducting livestream sales on platforms like YouTube, Facebook, and TikTok.

Tax agencies will then audit and inspect those who display indications of a tax concern at their registered addresses. They will work closely with other relevant authorities and may refer cases to the police if there is evidence of deliberate tax evasion.

Local tax departments are also required to coordinate with each other when requested by tax authorities from other jurisdictions to audit high-income individuals or organizations engaged in livestream sales.

According to NielsenIQ, in the first quarter of this year, 95% of online shoppers purchased products through these channels. On average, there are 2.5 million livestream sales sessions per month, involving over 50,000 sellers, as reported by the Vietnam E-commerce Association.

Currently, online sellers have to pay value-added tax (VAT) and personal income tax if their annual revenue exceeds approximately US$4,200 (VND100 million). Individuals earning commissions from livestream sales are subject to a progressive personal income tax rate ranging from 5% to 35%, depending on their income bracket. If commissions are paid to business households, they must declare and pay a 7% tax rate, which includes 5% VAT and 2% personal income tax.

These assessments are part of intensified efforts by tax authorities to tighten the management of e-commerce and prevent tax losses. Recently, many organizations and individuals engaged in online sales, including those using livestreams, have been audited and fined for failing to declare and pay taxes.

In the first half of the year, nearly 43,000 businesses and individuals were audited for tax declaration and payment compliance. This group contributed nearly $420 million (VND10 trillion) in taxes, an increase of around $150 million (VND3.5 trillion) compared to the same period last year. The tax authorities also handled 4,560 violations, collecting arrears and fines of nearly $12.6 million (VND300 billion).