Livestream selling has become the main revenue channel for thousands of KOLs and online shop owners — yet the tax and invoicing duties behind each live session remain a blind spot for many. From 2026 the tax framework changes significantly: lump-sum tax abolished, the taxable threshold raised to VND 1 billion per year, platforms withholding tax on sellers’ behalf. This article maps the tax and invoicing obligations of KOLs and online sellers who livestream.
1. From 2026: lump-sum tax abolished, self-declaration on actual revenue
Under Decree 68/2026/ND-CP (05/3/2026) and the Tax Administration Law 108/2025/QH15, from 2026 the lump-sum (khoan) tax is abolished for household businesses: they shift to self-declaration and self-payment based on actual revenue. Selling via websites, social networks, livestreams or e-commerce platforms is all business activity — it does not change the nature of the tax duty.
2. The new threshold: VND 1 billion per year (no longer 500 million)
Decree 141/2026/ND-CP (29/4/2026), amending Decree 68/2026, raises the threshold for exemption from value-added tax and personal income tax for household and individual businesses to VND 1 billion in annual revenue (Article 8). Specifically:
- Annual revenue of VND 1 billion or less: no VAT or PIT payable — but actual revenue must still be reported for the year;
- Annual revenue above VND 1 billion: full declaration and payment required.
Key note: the threshold applies to total multi-channel revenue (platforms + Facebook + physical stores + other sources) — channels may not be counted separately to dodge the threshold. Any material still citing VND 500 million is outdated.
3. Selling on platforms with payment functions: the platform withholds and remits
For orders on platforms having both online ordering and payment functions (Shopee, TikTok Shop, Lazada…), under Decree 117/2025/ND-CP (effective 01/7/2025) and Article 43 of Decree 252/2026/ND-CP, the platform withholds, declares and remits VAT and PIT for sellers on each transaction. Common rates for resident individuals selling goods: 1% VAT and 0.5% PIT on revenue.
Sellers need not re-declare tax already withheld by the platform, but must: provide complete, accurate identification and tax code information (the personal identification number, per Article 11 of the Tax Administration Law 108/2025) to the platform; reconcile withholding figures; and self-declare off-platform revenue.
4. Selling via Facebook, livestreams, own websites: self-declaration
Platforms without payment functions (Facebook, self-hosted livestreams, own websites) fall outside the withholding mechanism — sellers must directly register, declare and pay tax (Circular 18/2026/TT-BTC). This is currently the highest-risk group: many KOLs fail to declare off-platform sales revenue, use multiple receiving accounts, or omit affiliate commissions, sponsorships and monetised gifts — all taxable income that must be aggregated.
5. Invoicing: platform withholding does not end your duty
The most common misunderstanding: a platform withholding and remitting tax does not relieve the seller of invoicing duties. Per tax authority guidance:
- Household and individual businesses with annual revenue above VND 1 billion must use e-invoices with tax authority codes or e-invoices generated from cash registers;
- They may authorise a third party (the platform operator) to issue e-invoices where conditions are met (Article 4(5), Decree 254/2026/ND-CP);
- Without such authorisation, sellers may require the platform to provide buyer information, transaction details, delivery times and order-completion confirmations to issue invoices themselves (Articles 17 and 19, Decree 254/2026/ND-CP).
6. Data discipline: what to keep for tax reconciliation
- Track all revenue from every sales channel;
- Distinguish tax already withheld by platforms from amounts requiring self-declaration;
- Retain transaction data, orders, returns, cancellations and receiving-account statements;
- Keep identification and tax code information consistent across all platforms.
7. Frequently asked questions
Q: A KOL only earns affiliate commissions without selling directly — is tax due?
A: Yes. Affiliate commissions, sponsorships and monetised gifts are all taxable income, aggregated with other income sources to determine the tax duty.
Q: With revenue below VND 1 billion per year, is there anything to do on tax?
A: No VAT or PIT is payable, but actual annual revenue must still be reported to the tax authority.
Q: Selling both on platforms and via Facebook livestreams — how to declare?
A: Platform sales (with payment functions) are already withheld and remitted — do not re-declare; Facebook sales are self-declared and paid; combine both channels’ revenue to test the VND 1 billion threshold.
KOLs and online shop owners needing a tax and invoicing review for livestream operations? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. Content is pending QA Council review before submission for approval; information is for reference only and does not replace legal advice for your specific case.
