“Tax compliance in e-commerce still faces many challenges, mainly due to a lack of understanding and fear of taxation. Most small online sellers are unclear about taxable income thresholds, the types of taxes they must pay, and the filing procedures,” said Hoang Duy Chinh, deputy head of finance and accounting at Viettel Post, during a seminar on promoting voluntary tax compliance – building a prosperous era”, organized by Lao Dong newspaper, the General Department of Taxation, and the Vietnam Chamber of Commerce and Industry (VCCI) on October 23.

“They don’t intend to evade taxes, but the lack of simple, user-friendly guidance discourages them. Complicated e-filing procedures make many afraid of making mistakes or being fined, so they avoid compliance altogether,” Chinh said.

Another weakness, he added, is the absence of a “first-time self-correction” mechanism. Small errors go unnoticed and unaddressed until later, when taxpayers are penalized, undermining the spirit of voluntary compliance, a key principle of modern tax management.

Chinh noted that e-commerce is a non-traditional, multi-platform, and cross-border sector, making it difficult to determine sellers’ and buyers’ business locations. This poses challenges in accurately identifying taxable subjects and revenue.

However, delivery units and e-commerce platforms hold critical real-time data such as transaction scale, sales frequency, revenue, and buyer-seller information. They can be an effective bridge between taxpayers, tax authorities, and management units, contributing to e-commerce transparency.

Partnership emphasized

The Viettel Post representative said that to spark voluntary tax compliance, the approach must shift from “management” to “partnership.” Online sellers, e-commerce platforms, and delivery companies should not just be seen as monitored subjects but as partners in fulfilling tax obligations.

Chinh proposed that tax authorities provide easy-to-understand guidance, enhance online support, and develop user-friendly tools to help sellers easily declare and pay taxes. Additionally, it is necessary to establish coordination mechanisms between tax authorities, e-commerce platforms, and delivery companies to implement a collection and payment on-behalf scheme, instead of relying solely on administrative measures or penalties.

Shifting from ‘control and impose’ 

Associate Professor Le Xuan Truong, dean of the faculty of taxation and customs at the Academy of Finance, said the key policy levers are tax thresholds and rates.

He explained that tax-free and taxable income thresholds, for both value-added tax (VAT) and personal income tax (PIT), as well as family deductions need to be reviewed to better reflect current realities.The Ministry of Finance has included these revisions in the draft amended PIT law, but the key question remains: how should they be adjusted and on what basis?

Truong recalled that before 2013, the VAT threshold for household businesses was linked to the minimum wage, and later switched to the base salary. At that time, a revenue threshold of VND100 million per year exempted businesses from PIT and VAT. After 12 years, by the end of 2024, the threshold had been doubled to VND200 million, raising doubts about whether the adjustment was reasonable.

As for tax rates, he said authorities must review levels that no longer reflect taxpayers’ real capacity, ensuring fairness across different income groups.

Meanwhile, Nguyen Thi Cuc, chair of the Vietnam Tax Consultants’ Association, stressed that to improve compliance, authorities must shift from a mindset of “management and imposition” to one of “service and partnership.” The tax system should evolve into a comprehensive support ecosystem, reducing compliance costs for both taxpayers and society.

She proposed adding an automatic late-payment reminder feature. Although tax payments are now electronic, there is no timely warning system. Under current regulations, even minor delays result in the same fine levels, regardless of the tax amount.

“Some taxpayers who are only a few days late paying a few hundred thousand dong can still be fined several million, which feels unfair and discouraging,” she noted.

Small business owners also bear multiple non-tax expenses such as market fees, food safety costs, and operational charges, adding financial pressure.

“If policies reduce those non-tax costs, they will be more willing to comply with tax obligations. Improving tax compliance requires not only tax policy but also institutional synchronization, cost reduction, and real facilitation for taxpayers,” she emphasized.

According to Cuc, despite tax policy reforms, implementation gaps persist, sometimes countering management goals. Thus, deeper reforms are needed to reduce social costs, enhance transparency, fairness, and voluntary compliance.

Mai Son, Deputy Director of the Tax Department, said the upcoming goal is to cut about 44 percent of administrative costs, higher than the general 30 percent requirement.

Nguyen Le