- Vietnam will eliminate the VAT exemption on products valued below VND1 million imported via e-commerce platforms
- Other countries have scrapped similar policies, such as the EU requiring taxes on goods valued below $22 and Singapore collecting VAT on low-value products
- Thailand has imposed a seven-percent VAT on all imports
- The government is proposing mandatory regulations for e-commerce platforms to declare and pay taxes on behalf of traders
- Relevant ministries will develop databases about traders on e-commerce platforms
- Approximately four to five million low-value orders were sent from China to Vietnam via e-commerce platforms per day in March 2023
- Vietnam is losing significant tax revenue due to the VAT exemption for low-value products
- The VAT exemption is negatively impacting local producers and retailers
- The total loss from the VAT exemption is greater than expected
Source: tuoitrenews.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.
