HCMC – The Government would do away with the value-added tax (VAT) exemption for goods valued at less than VND1 million that are imported through e-commerce platforms, according to Deputy Prime Minister Ho Duc Phoc.
The VAT exemption for items that cost below VND1 million each aligns with Vietnam’s commitments to the Tokyo Convention. However, Phoc noted that other member countries have not adopted this exemption.
The Government will abolish Decision 78, which currently exempts small-value goods from VAT, which are imported through e-commerce platforms like Shopee or Temu. According to a draft law, VAT would be levied on all small-value imported goods.
The National Assembly Standing Committee emphasized that Decision 78 has led to significant tax revenue losses on imports through e-commerce channels.
As of March 2023, an estimated four to five million small-value orders from China are shipped to Vietnam daily through e-commerce platforms, amounting to an average of US$45 million to US$63 million in goods free from import tax and VAT each day.
