- Minister of Finance Ho Duc Phoc submitted the draft Law on Value Added Tax (amended) to the National Assembly on June 17.
- The draft law aims to introduce VAT on small-value imports from e-commerce platforms like Shopee, Lazada, and TikTok.
- Amendments and supplements in the draft law cover various aspects including taxpayers, non-taxable subjects, taxable price, tax rate, tax deduction method, direct calculation method on VAT, input VAT deduction, cases of tax refund, invoices and documents, effective date, and implementation organization.
- New regulations on the time of determining VAT and prohibited acts are introduced.
- Gifts, presents, and movable assets within the import tax exemption limit are exempt from VAT.
- Current regulations exempt imported goods valued at less than 1 million VND sent via express delivery from import tax and input VAT.
- Chairman of the National Assembly’s Finance and Budget Committee, Le Quang Manh, highlighted the significant increase in small-value transactions due to cross-border e-commerce.
- Vietnam sees an average of 4-5 million small-value orders shipped daily from China via platforms like Shopee, Lazada, Tiki, and TikTok.
- In March 2023, the value of each order ranged from 100,000 to 300,000 VND, with an average daily circulation of goods worth 45-63 million USD through these platforms.
- Many countries have eliminated VAT exemptions for small-value imported goods to protect revenue sources and ensure fair competition between domestic and imported goods.
- The Finance and Budget Committee recommends implementing policies to expand revenue sources due to current budget constraints.
- Vietnam’s current general VAT rate of 10% is lower than the regional and global averages, with Asia averaging 12%, Latin America 14%, Africa 16%, and OECD countries 19%.
Source: vietnamnet.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
