What Foreigners Should Know About Tax Obligations in E-commerce in Vietnam

If you are doing online business in Vietnam but are not fully aware of your tax obligations in e-commerce, especially regulations related to tax evasion, you may be exposed to legal risks. Many foreign individuals and businesses unintentionally face legal issues due to lack of information or incorrect application of regulations. Seemingly minor mistakes in tax declaration or revenue management can lead to serious consequences if not addressed in time. So, what should you do if you are suspected of tax evasion?

Tax Evasion in E-commerce: Understanding It to Avoid Legal Risks

In recent years, Vietnam’s e-commerce sector has grown rapidly, with significant participation from foreign individuals and businesses. However, alongside opportunities come legal risks that are not always fully understood — with tax evasion being one of the most serious concerns.

What Constitutes Tax Evasion in E-commerce?

Under the Law on Tax Administration 2019 and the Criminal Code 2015 (amended in 2017), tax evasion may include:

• Failure to register for a tax code when required
• Failure to declare or incorrect declaration of revenue from online sales
• Using personal accounts, e-wallets, or intermediary platforms to conceal income
• Failure to issue invoices or incomplete recording of transactions

Importantly, foreign individuals or entities doing business in Vietnam — regardless of whether they have a legal entity — are still subject to tax obligations if income is generated within Vietnam.

When Does Tax Evasion Lead to Criminal Liability?

Not all tax violations result in criminal charges. However, under Article 200 of the Criminal Code:

• If the evaded tax amount is from VND 100 million or more, or
• If administrative penalties have been imposed and the violation is repeated

then criminal liability may arise.

Possible penalties include:

• Fines up to billions of VND
• Prohibition from conducting business in certain sectors
• In serious cases, imprisonment

It is important to note that foreigners who violate criminal laws in Vietnam are subject to Vietnamese law and may face additional measures such as deportation.

Foreigners Under Tax Investigation: What Should You Do to Protect Yourself?

Receiving an invitation to work with the police or tax authorities can be stressful and intimidating. However, the key is to have the right legal strategy from the very beginning.

Common Mistakes That Can Worsen the Situation

Based on DEDICA’s experience, common mistakes include:

• Providing statements without legal counsel, leading to unfavorable disclosures
• Not understanding your rights when working with authorities
• Delays in gathering evidence to demonstrate lack of intent
• Improper cooperation, leading to misunderstandings

For foreigners, language barriers and differences in legal systems can significantly complicate the situation.

DEDICA’s Legal Approach: Supporting and Protecting You Effectively

At DEDICA, we have assisted many foreign clients in criminal and tax-related matters in Vietnam. Our approach is not just about solving problems, but about minimizing risks and protecting our clients’ legal rights.

Typical steps include:

• Comprehensive case assessment: determining whether the conduct constitutes a crime or an administrative violation
• Working with authorities: representing or supporting clients during explanations
• Developing a tailored legal strategy based on specific facts and circumstances
• Providing language and legal-cultural support throughout the process

We understand that what clients need is not only legal knowledge, but also peace of mind during a highly stressful situation.

Are you facing a similar issue?
If you or your loved ones are being investigated or involved in a tax-related matter in Vietnam, do not wait until the situation escalates.

Contact DEDICA Law for a legal strategy tailored to your case.

📞 Hotline: (+84) 39 969 0012 (WhatsApp, WeChat, Zalo available)
🕒 Working hours: Monday – Friday (8:30 – 18:00)