- Vietnam imposed VAT on low-value imported goods to ensure fair competition between domestic and imported products.
- The policy aims to promote domestic consumption and recover lost tax revenue.
- The new VAT policy applies to goods valued at less than VND1 million (US$39.40) and sent via express delivery services.
- The General Department of Customs estimates that VAT collection on these imports could generate an additional VND 2.7 trillion (US$105.6 million) annually.
- E-commerce platforms, logistics companies, and importers have had to adapt to the new tax requirements.
- Consumers have faced higher costs due to the new VAT.
- Vietnam’s customs system is still adjusting to handling VAT collection efficiently.
- Vietnam’s approach aligns with international trends, as several countries have removed VAT exemptions on low-value imported goods.
Source: aseanbriefing.com
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.
