If you are doing business in the digital market, declare online business tax is an indispensable part to help your business develop sustainably. So where can you do this process and what documents do you need to prepare, how to pay taxes, etc.

1. When do you need to declare online business tax?

According to Clause 2, Article 4 of Circular 40/2021/TT-BTC, “Individuals or households doing online business with a revenue of 100 million VND or more must declare and pay taxes”. The specific tax rate will depend on the industry and total revenue. For example:

For online sales activities within the scope of distribution and supply of goods, the personal income tax rate to be paid is 0.5% of total revenue each year as prescribed in Appendix 1 of the above Circular. At the same time, individuals and households doing online business must also pay 1% value added tax (VAT). In total, when doing business online, you will have to pay a total of 1.5% VAT and personal income tax on total revenue of VND 100 million or more per year.

According to the provisions of the Law on Tax Administration 2019, online sellers must finalize personal income tax and VAT on the last day of the 4th month after the fiscal year. In case the last day to pay tax falls on a holiday, the deadline will be calculated as the next working day of that holiday.

2. Where to declare online business tax? What documents are required?

To declare online business tax, you can do it in two ways: go directly to administrative agencies or through the electronic information portal.

2.1. Declare online business tax at local administration

According to current regulations, tax declarations for individuals doing business online can be submitted at the local Tax Department where the individual or organization is operating. The dossier will include the following necessary documents:

• Tax registration form according to form 03-DK-TCT issued with Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Minister of Finance.
• Copy of business registration certificate of the individual or organization.
• Copy of identification documents such as ID card, citizen identification card or passport

All of the above documents do not need to be certified. After receiving the personal tax code, the next step is to notify the e-commerce site according to the provisions of law.

2.2. Declare online business tax via the electronic information portal

In addition, you can also declare business tax online via the “Electronic Tax” information portal of the General Department of Taxation, Ministry of Finance according to the following instructions:

Step 1: Go to the official website of the General Department of Taxation

First, you need to access the Electronic Tax website of the General Department of Taxation > Then, select the “INDIVIDUAL” section to start the tax declaration process. The system will automatically transfer you to the “Login” page, select it to continue > Fill in the tax code and confirmation code in the corresponding boxes.

Step 2: Log in to your account to declare business online

You will receive a temporary password via text message > Enter this password in the login box to access the electronic tax declaration system for business households > Select “Login”.

Step 3: Start declaring

After successfully logging in, you will see several different tabs > Select the “Tax declaration” tab > Select the declaration form “Form 01/CNKD” > Next, select the declaration form as monthly or quarterly, then click “Continue”.

When the screen displays the information of the declaration form 01/CNKD, select the option “HKD, CNKD pay tax according to the declaration method”. Then, you need to declare all the required information in this declaration.

Continue the process by selecting the sub-declaration form 01-2/BK – HĐKD > Click “Continue” and then select “Accept” to proceed to the next step. If the screen does not display form 01-2/BK-HĐKD, click “Options” to add this appendix.

Step 4: Complete the online business tax declaration

After the screen displays detailed information about the business activity statement, carefully check the information entered and click “Complete declaration”. When you are sure that all information is correct, select “Submit declaration” and then click “Continue”. If the system requires you to attach documents, you can choose to skip it and click “Continue”.

Finally, you need to receive an OTP code from the General Department of Taxation system sent to your phone. Enter this OTP code in the requested box and click “Continue”. If everything goes smoothly, the screen will display the message “Submit declaration successfully”.

3. Is it okay to be late in declaring online business tax?

Late submission of tax declarations is a violation of tax laws and can lead to serious consequences for individuals and businesses. According to Article 13 of Decree 125/2020/ND-CP, the penalty for violations regarding the time of submitting tax declarations is specifically prescribed as follows:

4. Types of online sales taxes 2025 and how to calculate them

Currently, individuals or organizations selling online need to pay taxes and fees, and the calculation of online business tax for each type is clearly regulated as follows:

4.1. Personal Income Tax

Personal Income Tax is calculated based on VAT taxable revenue and applies a tax rate of 0.5% on total revenue if revenue exceeds VND 100 million/year. This is an important part of the tax declaration process, requiring attention to detail to avoid legal penalties.

4.2. VAT

VAT, another part of the total tax payable, is calculated by applying a rate of 1% on total revenue when revenue exceeds VND 100 million/year. This is another important part of the tax declaration process, requiring transparency and correctness in calculation.

4.3. Business license fee

According to Article 4 of Decree 139/2016/ND-CP, business license fees are determined based on the annual revenue of the enterprise. Specifically, the business license fee levels are as follows:

• For revenue of over VND 500 million per year, the business license fee payable is VND 1 million.
• When an individual or organization doing online business has a revenue of VND 300 to 500 million per year, the business license fee payable is VND 500,000.
• For revenue of over VND 100 to 300 million per year, the business license fee payable is VND 300,000.

In the process of calculating taxes, revenue for VAT and personal income tax includes the total value of sales and other expenses. For those who pay lump-sum taxes, revenue is determined based on lump-sum revenue and revenue recorded on invoices.

However, in cases where business individuals cannot determine their taxable revenue or determine it incorrectly, the tax authority will decide on the tax amount to be paid, which places a high demand on transparency and accuracy in the business and tax declaration process.

5. Conclusion

With the above information, we hope you have a better understanding of online business tax declaration. This is not only a necessity to help businesses avoid legal risks but also creates a solid foundation for sustainable development. Therefore, always comply and implement fully.