Southeast Asia (SEA) is one of the fastest-growing e-commerce regions globally, driven by rapid digital adoption, rising consumer spending and stronger regional economic integration. Platform e-commerce GMV across the region grew 22.8% year on year to reach US$157.6 billion in 2025, with Thailand and Malaysia the fastest-growing markets. For companies focused on business expansion, improving marketplace access and scaling cross-border operations, understanding the landscape and having the right tools is essential.
This article outlines key markets, updated tax frameworks, and the crucial steps for expanding your business strategically and efficiently across SEA.
SEA market snapshot and tax rates (2026)
| Country |
Corporate tax / CIT |
VAT / GST / SST |
Notes
|
| Singapore |
17% (startups eligible for partial exemptions and a 50% tax rebate capped at S$40,000) |
GST 9% (since Jan 2024) |
Stable business environment, strong digital infrastructure |
| Vietnam |
Standard corporate tax 20% |
VAT 10%, temporarily reduced to 8% on many goods and services through 31 December 2026 |
E-commerce platforms collect VAT on sellers’ revenue; the VND 1 million low-value import exemption was withdrawn in February 2025, so nearly all B2C imports now attract VAT |
| Philippines |
25% standard, 20% for small domestic corporations |
VAT 12% |
Digital services supplied by foreign platforms have been subject to 12% VAT since 2025 |
| Thailand |
0% for net profits up to THB 300,000; 15% for THB 300,001 to 3 million; 20% above THB 3 million |
7% (exports zero-rated) |
A 15% global minimum tax surtax for large multinationals has been in effect since January 2025 |
| Cambodia |
0 to 20% progressive for small businesses; 20% for medium and large companies |
10% |
SEZ incentives available for exporters |
| Malaysia |
Standard rate 24% |
Sales Tax 5 to 10% on non-essential and luxury goods; Service Tax at 6% for essentials, rental and leasing, and 8% for most other newly taxed services including financial services |
SST expansion reached full enforcement from 1 January 2026, after a grace period through 2025; penalties for non-registration now apply |
| Indonesia |
22% standard |
VAT 12%, with an effective rate of around 11% for most goods and 12% on luxury goods |
Rapidly growing e-commerce market with Shopee dominance |
Tax rates change frequently and vary by business structure and product category. Always confirm the current rate with a local tax adviser, such as those listed by PwC Tax Summaries, before pricing or filing.
Why these markets matter for growth
According to Momentum Works’ 2026 E-commerce in Southeast Asia report, the picture across individual markets looks like this:
|
Country
|
E-commerce snapshot (2025) |
Strategic characteristics
|
| Indonesia |
Still the region’s largest e-commerce market by GMV, with a 37% regional share, though growth slowed to 2.2% following platform consolidation |
Massive domestic demand; fast-growing internet economy |
| Thailand |
Fastest-growing major market, with GMV up 51.8% year on year; e-commerce now accounts for roughly 30% of total retail sales |
Strong manufacturing base and infrastructure growth; burgeoning middle class |
| Malaysia |
Second-fastest-growing market, with GMV up 47.6% year on year |
Growing digital economy and a strategic regional hub for cross-border trade |
| Vietnam |
Double-digit growth exceeding 20% year on year |
Young, digital-first consumers; rapid social commerce adoption via TikTok and Shopee |
| Philippines |
Double-digit growth exceeding 20% year on year |
Mobile-savvy population, high social commerce and remittance flows |
| Singapore |
Double-digit growth exceeding 20% year on year |
Highly stable business environment with top-tier digital infrastructure |
| Cambodia |
Over US$5 billion in exports from special economic zones (SEZs) in 2024, with 26 to 30 SEZs offering tax holidays and import duty and VAT exemptions |
Attractive tax incentives and FDI-focused zones, ideal for export manufacturing |
Across the region, three platforms, Shopee, Lazada and TikTok Shop, now account for around 99% of platform GMV, which matters for market entry planning since a listing strategy realistically needs to cover at most these three.
Insights:
- Diverse economic terrain. Countries like Singapore offer high infrastructure standards and ease of business; Thailand and Malaysia are currently the fastest-growing markets in percentage terms; Indonesia remains the largest by absolute size; and Cambodia offers attractive SEZ policies for manufacturing-led export growth.
- Rising middle class and digital access. Across all these markets, urbanisation and internet and mobile penetration are fuelling new consumer behaviours and e-commerce opportunities.
- Favourable incentives. Several countries, especially Cambodia, offer tax breaks, VAT and import duty exemptions, and other investment incentives. This is key for SMEs and scaling exporters.
E-commerce tax and de minimis changes to watch
Tax rules for cross-border e-commerce in SEA have moved quickly over the past year, and several changes directly affect margins and pricing for sellers shipping into the region:
- Vietnam removed its low-value import exemption in February 2025. Previously, consignments under roughly VND 1 million (about US$40) were exempt from VAT. Nearly all B2C imports into Vietnam now attract the standard VAT, which changes the landed cost calculation for smaller-ticket cross-border orders.
- Malaysia’s Sales and Service Tax expansion reached full enforcement on 1 January 2026. Rental and leasing, financial services, construction and other categories brought into scope from July 2025 are now enforced with penalties, after a compliance grace period through the end of 2025.
- The Philippines applies VAT to digital services from foreign platforms. Since 2025, non-resident digital service providers, including many marketplaces and SaaS tools, have been required to charge and remit 12% VAT on Philippine sales.
- Thailand’s global minimum tax is now active. The 15% surtax on large multinationals, aligned with the OECD’s global minimum tax framework, has applied since January 2025.
The pattern across the region is consistent: exemptions and thresholds that used to favour small cross-border sellers are narrowing, while digital and platform-based revenue is being brought more explicitly into local tax nets. Building a habit of checking each target market’s rules at least twice a year is a sensible part of any SEA expansion plan.
How to enter Southeast Asia effectively
1. Choose your market entry approach
- Use regional platforms such as Shopee, Lazada or TikTok Shop for cross-border e-commerce, since together they cover the vast majority of platform GMV in the region.
- Partner with distributors or establish operations in regional hubs like Singapore.
- Explore Cambodia’s SEZs for favourable tax structures if manufacturing or export-led growth is part of your plan.
2. Stay tax-compliant
Use the tax overview above to plan your expansion, and revisit it regularly given how often SST, VAT and digital service tax rules have changed across the region in the past year. VAT and SST rates, such as Vietnam’s 8% reduced rate and Malaysia’s newly enforced service tax categories, are especially important for digital or cross-border sellers to get right from the outset.
3. Streamline payments and currency management
- Use spot contracts and FX tools to secure competitive rates.
- Enable fast international transfers to pay suppliers or receive funds.
- Monitor FX to protect profit margins when expanding your business across multiple currencies.
4. Adapt to local platforms and customer preferences
- Localise language, pricing, listings and payment methods for each market.
- Understand platform dynamics, especially if you’re learning how to sell on Shopee, Lazada or TikTok Shop.
- Customise promotions for regional events and shopping seasons.
5. Use technology to manage growth
- Automate invoicing and multi-currency reconciliation.
- Integrate with accounting software like Xero and marketplaces for accurate financial flows.
WorldFirst: enabling growth in SEA
Expanding across SEA is much easier when your payments and FX are smooth.
WorldFirst partners with over 130 global marketplaces, allowing you to launch and start reaching new international customers in a fraction of the time. WorldFirst is not a bank; Ant International has received approval from Bank Negara Malaysia to operate WorldFirst in Malaysia under a Class A Money Services Business licence, and WorldFirst has supported over 1.5 million businesses since 2004.
Register for a World Account to access:
- Direct payments to suppliers and wholesalers, including Chinese suppliers sourcing components for your SEA-bound products, from your World Account balance.
- Real-time FX tools to protect your margins when you sell on international marketplaces.
- Seamless integrations with your marketplace access and accounting systems.
- Transparent fees and a single dashboard to track every incoming and outgoing payment.
- The ability to lock in rates via spot contract or forward options.
- Access to flexible FX services tailored to your business flow.
- A regulated, MAS- and BNM-recognised partner to help you stay compliant with cross-border payment infrastructure in each market.
Gain the flexibility you need when growing into new SEA markets, all from a single login. Register for a World Account today.
FAQs
1. Which Southeast Asian e-commerce market is growing fastest?
Thailand and Malaysia were the fastest-growing platform e-commerce markets in 2025, with GMV up 51.8% and 47.6% year on year respectively, according to Momentum Works. Vietnam, the Philippines and Singapore all grew more than 20%, while Indonesia remains the largest market by total size despite slower recent growth.
2. Do I need to charge VAT on digital sales into the Philippines or Vietnam?
In most cases, yes, if you meet the local registration threshold. The Philippines requires foreign digital service providers to charge and remit 12% VAT on Philippine sales, and Vietnam requires e-commerce platforms to collect VAT on sellers’ revenue, with the low-value import exemption removed in February 2025. Rules and thresholds vary by country, so confirm the current requirements with a local tax adviser before selling into a new market.
3. What is the easiest Southeast Asian market to expand into for e-commerce?
Singapore is generally considered the most straightforward entry point, thanks to its stable business environment, clear tax rules and strong digital infrastructure, which is why many businesses use it as a regional hub before expanding further. That said, “easiest” depends on your product and customer base; Indonesia offers the largest audience, while Thailand and Malaysia currently offer the fastest growth.
4. How can I reduce currency risk when selling across multiple SEA markets?
A multi-currency account that lets you hold and convert SGD, MYR, THB, VND, PHP and other regional currencies can reduce the number of conversions you make, and tools like spot and forward contracts let you lock in rates ahead of time rather than being exposed to daily FX swings. This is particularly useful when your marketplace payouts and supplier payments are in different currencies.
5. Is WorldFirst a bank?
No. WorldFirst is not a bank. In Malaysia, Ant International has received approval from Bank Negara Malaysia to operate WorldFirst under a Class A Money Services Business licence, and customer funds are handled under that regulated framework rather than as bank deposits.
