E-commerce goods are subject to taxes: Will prices increase?

From February 18, 2025, imported goods purchased through e-commerce platforms with a value under 1 million VND will no longer be exempt from import tax and value-added tax.

According to Decision 01/2025 dated January 3, 2025, of the Prime Minister , which completely repeals Decision No. 78/2010/QD-TTg dated November 30, 2010, on the value of imported goods sent via express delivery services that are exempt from tax, from February 18, 2025, goods with a value under 1 million VND sent via express delivery services will be subject to import tax and value-added tax.

This policy change was introduced in the context of e-commerce With strong economic growth, imports of low-value goods have increased significantly. This results in revenue losses for the government and creates unfair competition between imported goods and domestically produced goods.

Taxes on e-commerce goods could increase the price of goods imported into Vietnam. (Illustrative image)

In 2024, despite the ongoing challenges facing the global and regional economies , Vietnam's e-commerce sector continued its impressive growth rate, surpassing $25 billion and accounting for approximately 9% of the country's total retail sales of goods and consumer services.

According to the Ministry of Industry and Trade , the e-commerce market currently accounts for two-thirds of the country's digital economy value, placing Vietnam among the top 10 countries with the fastest e-commerce growth in the world, creating momentum for economic development and leading digital transformation in businesses.

According to Metric's 2024 online retail market overview report and 2025 forecast, 2024 saw strong growth in imports, with over 324.1 million products entering Vietnam, generating VND 14,200 billion in sales, representing growth rates of 37.9% and 42.9% respectively compared to the same period. In 2024, the low-price segment (under VND 200,000) recorded strong growth in both sales and market share, increasing by approximately 3.7%.

To ensure fairness between imported goods and domestically produced and traded goods, from February 18, 2025, goods valued at less than 1 million VND sent via express delivery services will no longer be exempt from import tax and value-added tax.

Prior to this regulation, many predicted that cross-border sales prices on the platform would increase due to the additional 10% VAT and import duties, with customers ultimately bearing the cost. However, it is also possible that Chinese sellers will try to reduce costs or accept a portion of their profit margins to retain customers.

Discussing this issue, Mr. Hoang Ninh - Deputy Director Department of E-commerce and Digital Economy (Ministry of Industry and Trade) - commented: This regulation may make imported goods less attractive due to their highly competitive prices. This will encourage consumers to consider imported goods more carefully when shopping, thereby increasing demand for domestic goods, especially those of comparable quality. This is an opportunity for domestic businesses to improve their competitiveness and enhance product quality.

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