Vietnam Expands AI Use to Combat Tax Fraud in Booming E-Commerce Sector

Vietnam to Expand AI Use for Detecting Tax Fraud in Digital Economy

The Vietnamese Ministry of Finance plans to increase the application of artificial intelligence (AI) to detect tax fraud and verify income from digital platforms, according to Minister Nguyen Van Thang. This move comes as part of the ministry’s proposal to amend the Law on Tax Administration and the Law on Personal Income Tax, aiming to create a tax system that is simple, transparent, and easy to implement.

During a National Assembly Q&A session, Minister Thang highlighted the surge in tax collection from e-commerce activities. In the first five months of 2025, tax revenue from e-commerce rose by 55% to over VND75,000 billion ($2.87 billion), reflecting the rapid growth of digital commerce in Vietnam.

Strengthening Tax Management on Digital Platforms

Parliament member Nguyen Huu Thong expressed concerns about widespread tax fraud in e-commerce, which affects tax revenue and creates unfair competition. Minister Thang responded by emphasizing the ministry’s efforts to tighten tax management on digital platforms. Key measures include:

• Issuing regulations on electronic invoices for e-commerce transactions.
• Defining the responsibilities of e-commerce platforms in tax deduction and payment.
• Operating an electronic portal for tax declaration and payment.
• Applying information technology and AI to oversee tax administration on e-commerce.

Currently, 158 foreign suppliers declare and pay taxes through this portal, contributing VND23,000 billion ($880.3 million) in tax revenue.

New Government Regulations on E-commerce Tax Management

On June 9, 2025, the Government issued Decree No. 117/2025/NĐ-CP, which regulates tax management on business activities conducted on e-commerce and digital platforms by households and individuals. Effective July 1, the decree requires domestic and foreign e-commerce platforms to withhold and pay tax on each transaction generating revenue on behalf of these individuals and organizations.

Growth of Vietnam’s E-commerce Market and Tax Revenue

Vietnam’s retail e-commerce market is estimated to exceed $25 billion in 2024, growing 20% year-on-year, according to the Ministry of Industry and Trade. Correspondingly, tax revenue from e-commerce activities jumped 20%, reaching VND116 trillion ($4.56 billion).

This increased focus on AI and digital tools for tax administration reflects the ministry’s commitment to improving tax compliance and revenue collection in the expanding digital economy.

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