Overview

As of January 1, 2025, Amazon began calculating, withholding, and remitting taxes to the Vietnamese government on behalf of sellers conducting transactions in Vietnam. This change stems from Vietnamese tax regulations requiring foreign and domestic e-commerce platforms to collect withholding tax (WHT) on sales made by Vietnamese-based sellers. If you sell on Amazon and are based in Vietnam, this policy directly affects your payouts and tax reporting obligations.

Key Points / What Sellers Need to Know

• Effective date — The Vietnamese withholding tax requirement took effect on January 1, 2025. Amazon began automatically applying deductions to qualifying transactions from that date forward.
• Who is affected — Sellers based in Vietnam who make sales through Amazon marketplaces are subject to this withholding. The regulation applies regardless of whether the e-commerce platform itself is based inside or outside Vietnam.
• Amazon's role — Amazon is legally required to calculate, withhold, remit, and report the applicable taxes to the Vietnamese tax authorities on behalf of affected sellers.
• Automatic deduction — Sellers do not need to manually calculate or remit the tax themselves. Amazon handles the withholding and payment process, deducting the appropriate amount before disbursing seller proceeds.
• Not tax advice — Amazon's help page explicitly notes that the information provided does not constitute tax, legal, or professional advice. Sellers should consult their own tax advisors for guidance specific to their situation.

How Vietnamese Withholding Tax Works on Amazon

Under Vietnam's e-commerce taxation framework, foreign and domestic digital platforms operating in or serving the Vietnamese market are obligated to act as withholding agents. This means Amazon calculates the applicable tax on each qualifying transaction, deducts it from the seller's revenue, and remits the amount directly to the Vietnamese General Department of Taxation. The withholding typically covers personal income tax and value-added tax components, depending on the seller's tax status and the nature of the goods sold. Sellers will see the withheld amounts reflected in their payment reports and transaction summaries within Seller Central. The process is designed to be transparent, with itemized deductions visible in the seller's account statements.