- The Ministry of Finance is seeking feedback on a draft decision by the Prime Minister to abolish Decision No. 78/2010/QD-TTg which exempts VAT for low-value goods imported via express delivery services
- The proposal aims to align with the VAT Law and address the rapid growth of e-commerce in Vietnam and globally
- Initially, the exemption facilitated quicker customs clearance and reduced administrative procedures when customs declarations were done manually
- With the advancement of automated customs management systems at ports and warehouses, over 99% of customs procedures are now conducted electronically, speeding up the clearance process and reducing physical interactions
- The electronic customs declaration system has streamlined the management of daily goods declarations without disrupting trade activities
- Critics argue that exempting VAT for low-value imported goods creates unfair competition against similar domestically produced goods which are subject to VAT, potentially harming domestic production and consumption
- To ensure policy coherence and international norms, the Ministry of Finance proposes the immediate repeal of Decision No. 78/2010/QD-TTg to ensure fair taxation and encourage consumption of domestically produced goods
Source: baochinhphu.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.
