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The rapid growth of e-commerce and digital platforms has created significant business opportunities for individuals and household businesses (HBs). However, one of the most frequently asked questions remains:
Who is responsible for declaring and paying taxes when selling on Shopee, TikTok Shop, Facebook, or Zalo? Are household businesses required to perform additional tax procedures, or have the platforms already handled everything?
Effective from March 5, 2026, Article 11 of Decree 68/2026/ND-CP further clarifies tax administration requirements for business activities conducted through digital platforms. The regulations define the responsibilities of both e-commerce platforms and household businesses, helping sellers better manage revenue, comply with tax obligations, and minimize compliance risks.
1. How Is Revenue Determined for Tax Threshold Purposes?
When determining annual revenue for tax purposes, household businesses must aggregate revenue generated from all sales channels, including:
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Revenue from physical stores or fixed business locations;
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Revenue from e-commerce platforms such as Shopee, TikTok Shop, and Lazada;
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Revenue generated through Facebook, Zalo, and other social media platforms.
In other words, tax authorities do not assess each sales channel separately. Instead, tax obligations are determined based on the total revenue generated by the entire business operation.
Under Decree 70/2025/ND-CP, household businesses may be categorized according to annual revenue:
It is important to note that even if each individual sales channel generates less than VND 1 billion, the business may still become taxable if the combined annual revenue exceeds the applicable threshold.
1.1 Selling Through Platforms with Online Ordering and Payment Functions
For e-commerce and digital platforms that provide both online ordering and payment functionality, such as Shopee and TikTok Shop, platform operators are responsible for performing tax obligations on behalf of sellers.
For each transaction conducted through the platform, the platform operator is responsible for:
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Withholding the applicable tax amount;
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Reporting the withheld tax to the tax authority;
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Remitting the withheld tax on behalf of the household business or individual seller.
This significantly reduces administrative burdens for sellers. Nevertheless, household businesses should continue monitoring sales revenue and retaining supporting documentation to facilitate reconciliation and tax finalization when required.
1.2 Selling Through Facebook, Zalo, and Platforms Without Online Payment Functions
For businesses operating through social media platforms where sellers independently process orders, collect payments, and arrange delivery, the platform does not act as a payment intermediary and therefore does not withhold, declare, or pay taxes on behalf of the seller.
As a result, household businesses remain fully responsible for:
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Recording and consolidating revenue generated from business activities;
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Determining applicable tax liabilities;
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Filing tax declarations;
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Paying taxes within statutory deadlines.
Tax authorities may cross-check information from multiple sources, including bank accounts, logistics providers, payment intermediaries, and digital transaction data. Therefore, maintaining accurate revenue records and supporting documents is essential for compliance andc risk management.
If the business also operates a physical store, revenue from social media sales must be combined with offline revenue when determining tax obligations.
2. Where Should Household Businesses Submit Tax Returns?
The tax authority responsible for receiving tax declarations depends on the business model.
Businesses Operating Exclusively Online
Household businesses conducting operations solely through digital platforms and without a fixed business location must submit tax declarations to the tax authority managing their place of residence (permanent or temporary residence).
Businesses Operating Both Online and Offline
Household businesses that operate both online and through a physical business location must submit tax declarations to the tax authority responsible for the registered business location.
3. Annual Personal Income Tax Finalization Obligations
For household businesses that calculate personal income tax based on taxable income, annual tax finalization remains the responsibility of the taxpayer.
When conducting annual tax finalization, personal income tax already withheld and remitted by e-commerce platforms may be credited against the taxpayer's final tax liability.
Accordingly, sellers should retain all documentation evidencing tax withholding to ensure that these amounts can be properly offset during tax finalization.
4. Do Not Overlook Your Tax Refund Rights
Tax withholding by an e-commerce platform does not necessarily represent the final tax obligation of the household business.
If, after aggregating total annual revenue from all online and offline channels, the business determines that its revenue falls within a tax-exempt category under applicable regulations, it may be entitled to request a refund of taxes previously withheld by the platform.
This is a legitimate taxpayer right but is often overlooked due to incomplete revenue tracking or failure to perform proper tax finalization procedures.
5. Revenue Generated Through Digital Platforms Is Part of the Overall Business Operation
Many household businesses still assume that revenue generated through e-commerce platforms or social media channels is managed separately from their traditional business activities.
However, tax authorities determine tax obligations based on total business revenue, regardless of whether the revenue originates from physical stores, Shopee, TikTok Shop, Facebook, or other sales channels. Revenue from digital platforms therefore forms part of the business's overall financial picture.
As tax regulations continue to evolve and platform data becomes increasingly interconnected, maintaining consistent revenue tracking across all sales channels is becoming more important than ever.
From a management perspective, one of the most common challenges faced by e-commerce household businesses is that revenue, expenses, and cash flows are often scattered across multiple platforms. Manual consolidation of financial information is time-consuming and increases the risk of errors in tax reporting, revenue reconciliation, and business performance analysis.
Sliner supports e-commerce household businesses in establishing financial and tax management processes tailored to their operational scale. From consolidating multi-channel revenue data and monitoring tax obligations to producing management reports, the objective extends beyond compliance and enables business owners to gain a clearer understanding of operational performance.
In addition, through GenBook – the Accounting & Financial Operations System for E-commerce Businesses, household businesses can digitize financial recordkeeping processes, reduce manual administrative work, centralize supporting documents, and streamline tax preparation activities. With standardized and consolidated data, business owners can more easily monitor sales performance by channel, evaluate profitability, and make decisions based on reliable information rather than assumptions.
In today's multi-channel commerce environment, effective data management is not only essential for tax compliance but also provides a foundation for sustainable growth, operational scalability, and stronger financial management capabilities.
