Selling online on e-commerce platforms is a popular business trend in the era of strong technology like now. There is a common problem that even those who are preparing or have sold on e-commerce platforms have the same question, which is how to declare taxes for online business? To help individuals and businesses doing online business understand more about taxes, Viet My Law and Accounting will answer questions related to this issue in the article below.

1. Is it mandatory to register a business when selling online?

Case 1:

Individuals who sell online spontaneously, without a specific store (no fixed location), do not need to register for a business. However, business individuals are still required to register for a tax code according to form No. 03-DK-TCT (issued with Circular 105/2020/TT-BTC).

After successfully registering for a tax code, the tax authority will issue a tax code according to the MST-001 structure for the individual to submit a declaration and pay taxes.

Case 2:

Individuals or organizations that sell online with a store and regular sales activities are required to apply for a business license (business registration certificate).

In this case, you can choose 1 of the 2 following forms of business registration to sell online:

Individual business household: suitable for small-scale business, limited capital, few employees, few goods;

Company/enterprise: suitable for large-scale business, diverse types of goods, need to open more branches.

2. Do you need to pay taxes when doing online business?

There are 2 cases of online sales as we mentioned above, so no matter which case you sell, you have to pay taxes.

Detailed regulations on how to pay taxes for each case are as follows:

– Case 1: Individuals who do online business spontaneously, do not have a fixed store and do not register for business, only need to register a personal tax code to declare taxes.

– Case 2: Individuals/organizations selling online have a fixed store, registered as a business household or enterprise and pay taxes in accordance with the regulations of each type. In short, online sales are required to pay taxes to the State. However, depending on each specific case, each form of business, and the revenue achieved, the tax payment level will be different.

3. Taxes that must be declared and paid when doing business online

When paying taxes on online business, individuals doing business need to pay attention to some types of fees and obligations related to tax declaration as follows:

3.1. Business license fee

Business license fee will be applied to both organizations and individuals doing business, including online business activities.

According to Article 4 of Decree 139/2016/ND-CP, business license fees are prescribed for business activities as follows:

3.2. Personal Income Tax (PIT) and Value Added Tax (VAT)

Personal income tax and value added tax are applied to business individuals with annual revenue of over VND100 million.

PIT is calculated as follows:

VAT payable = Taxable revenue x VAT rate

In case of revenue of over VND100 million/year, individuals must pay PIT at a rate of 0.5% on all revenue.

Similarly for VAT:

Personal income tax (PIT) payable = Taxable revenue x PIT rate

In case of revenue of over VND100 million/year, individuals must pay VAT at a rate of 1% on all revenue.

In the process of calculating tax, VAT taxable revenue and personal income taxable revenue include the total value of sales and other expenses. For taxpayers using tax invoices from tax authorities, taxable revenue will be determined based on the taxable revenue and the revenue stated on the invoice.

In case the business individual cannot determine the taxable revenue or determines it incorrectly, the tax authority will decide the tax amount to be paid.

4. How to declare taxes for online business in 2025?

To declare business tax online, you need to follow these steps:

Step 1: You access the website https://thuedientu.gdt.gov.vn, then select the “INDIVIDUAL” section

Step 2: After the system transfers to the website https://canhan.gdt.gov.vn/, you select the “Login” section

Step 3: Individuals enter the tax code and confirmation code in the box

Step 4: Next, you enter the password provided in the phone message to access the electronic tax declaration system for business households => Select “Login”

Step 5: After successfully logging in, you select the “Tax declaration” tab => Select the declaration form “Form 01/CNKD” => Select the declaration form (monthly or quarterly) => Click “Continue”

Step 6: When the screen displays the information of the declaration form 01/CNKD, you select “HKD, CNKD pay tax by method declare” => Declare full information

Step 7: You do it in order: Select 01-2/BK – HĐKD => Select “Continue” => Select “Accept”

Note: If the screen does not display Form 01-2/BK- HĐKD for you to choose, click on “Options” to add an appendix.

Step 8: After the screen displays detailed information about the business activity list, you click on the option “Complete declaration”.

Step 9: When all information is correct, you select “Submit declaration” => Click “Continue”

Note: If the screen asks for attached documents, you choose to skip and click Continue.

Step 10: You enter the OTP code sent by the General Department of Taxation’s Application System => Click “Continue” => The screen will display the message “Declaration submitted successfully”.

5. What is the procedure for declaring online business tax?

To carry out the tax payment and declaration process for online business tax, individuals and businesses need to fully prepare the following documents:

• Tax registration form according to form 03-DK-TCT.
• A copy of the business registration certificate does not need to be certified.
• A copy of the identity card, citizen identification card or passport does not need to be certified.
• After receiving the personal tax code, you need to notify the e-commerce site according to the process prescribed by law.

6. What is the deadline for submitting and declaring online sales tax?

Individuals who declare and pay online sales tax must comply with the following regulations:

The online business tax declaration must be submitted before the 20th of the following month in which the tax obligation arises.

In the case of quarterly declaration, the latest submission deadline is before the 30th of the following quarter.
The deadline for submitting tax settlement documents is before the 90th day from the end of the calendar year.

Regarding online business tax payment, the deadline is the last day to submit tax declarations for each month, quarter and tax settlement.

Viet My Law and Accounting hopes that the information in this article will help you better understand online business tax and how to declare taxes accurately for online business. If you have any other questions or need support such as registering a business license for a business household, do not hesitate to contact us for the fastest service consultation.