- Vietnam will end VAT and import tax exemptions for low-value imported goods starting February 18
- The decision was made by Deputy Prime Minister Ho Duc Phoc to address the increase in e-commerce activities
- The exemption, in place since 2010, applied to goods under VND1 million shipped via express delivery
- Other countries like the UK, Australia, Thailand, and Singapore have also removed similar VAT waivers
- The Ministry of Finance believes the exemption is outdated due to the growth of e-commerce and aims to support local products
- Many Vietnamese consumers buy low-value items through local and international e-commerce platforms
- Goods under VND200,000 make up over half of Vietnam’s e-commerce sales in the first nine months of 2024
- Daily, 4 to 5 million small-value orders are shipped from China to Vietnam
- Last year, goods worth VND27.7 trillion were imported via express delivery
- Removing the tax exemption is expected to raise an additional VND 2.7 trillion in VAT revenue annually
- Vietnam’s e-commerce market reached $25 billion in 2024, growing 20% from the previous year
- E-commerce tax revenue also increased by 20% to VND116 trillion
Source: theinvestor.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.
