VAT exemption for low-value goods - ensuring fairness, preventing fraud

(PLVN) - On December 4, the Customs Department held a Special Press Conference to disseminate new points related to value-added tax (VAT) and special consumption tax (SCT), along with Circular 51/2025/TT-BTC regulating electronic transactions in the field of tax on imported, exported and transit goods. Notably, as of September 15, 2025, the amount of VAT collected from low-value goods sent via express delivery service was VND 1,035 billion.

A very important adjustment of tax policy

Sharing about this issue, Ms. Nguyen Thi Khanh Huyen, Head of the Tax Management Team, Customs Tax Department (Customs Department) said that from February 18, 2025, Decision No. 01/2025/QD-TTg officially took effect, ending the exemption of VAT for small-value goods sent via express delivery service. This is a very important adjustment step of tax policy. Collecting VAT on small-value goods via express delivery has increased budget revenue, ensured fairness, prevented fraud and conformed to international practices.

After 8 months of implementation, the Customs authority has recorded many remarkable results, in particular, the budget revenue has been significantly increased. Statistics show that, as of September 15, 2025, the VAT collected from low-value goods sent via express delivery service is 1,035 billion VND. This is a significant figure that initially contributes to ensuring resources for the country, implementing the Party and State's policies and orientations on covering all revenue sources and expanding the revenue base.

In addition, this new policy ensures fair competition. Previously, small-scale imports were exempted from tax while domestically produced goods were taxed. This tax collection helps create a more level playing field for domestic businesses.

Notably, the imposition of tax has limited the situation of dividing orders below the limit to avoid tax, contributing to preventing trade fraud and tax loss. At the same time, this policy is also in line with international trends, when many countries such as the EU, UK, Australia, Singapore, Thailand... have abolished the regulation of VAT exemption for small value goods.

Ms. Nguyen Thi Khanh Huyen informed at the Press Conference.

Because the collection of VAT on low-value goods sent via express delivery services is guaranteed to be in line with international legal trends and practices. Specifically, in recent years, countries in the European Union (EU) have abolished the VAT exemption for shipments of 22 euros or less. The United Kingdom (England, Scotland and Wales) also abolished the VAT exemption for imported goods with a total value of 135 pounds or less from January 1, 2021.

Similarly, Singapore will also abolish the VAT exemption for low-value goods, especially in the e-commerce sector, from January 1, 2023. To ensure fair trade practices, Thailand will also collect VAT on all imported goods, regardless of value, from May 1, 2024. In addition, at seminars, experts from the Trade Facilitation Project (TFP) also recommended that Vietnam consider collecting VAT on low-value imported goods.

According to Ms. Nguyen Thi Khanh Huyen, in order to facilitate businesses in customs declaration, as well as reduce the burden of manual management for the Customs agency, the Customs Department has been very urgent and made efforts in building and perfecting the information technology system to serve the declaration and tax collection for small-value goods sent via express delivery service.

On July 8, 2025, the Customs Department issued Document No. 13103/CHQ-GSQL on the plan to implement the Customs Procedures System for Group 2 Import and Export Goods sent via Express Delivery Service (AVP-ECOM System). Accordingly, from August 1, 2025, it will be applied to all express delivery businesses (including air, road, and rail).

Emphasizing the effectiveness of this system, a representative of the Customs Department said that the application of AVP-ECOM in the management of small-value goods has helped increase transparency, shorten processing time and prevent VAT losses. Thanks to that, budget collection is guaranteed and trade is facilitated.

Expanding the list of goods not subject to VAT

Ms. Nguyen Thi Khanh Huyen also said that the VAT Law No. 48/2024/QH15 and the guiding Decree have supplemented many regulations that were previously only guided by official dispatches. The highlight is the expansion of the list of goods not subject to VAT, helping businesses reduce legal risks and compliance costs.

Notably, the Law on VAT, effective from July 1, 2025, has added a group of goods that are not subject to VAT. These are goods imported from abroad by financial leasing companies that are transported directly into duty-free zones for financial leasing to enterprises in the duty-free zones; exported products that are unprocessed resources and minerals and exported products that are processed resources and minerals according to the list prescribed by the Government in accordance with the State's orientation on discouraging exports and restricting exports of raw resources and minerals; assets moving within the import tax exemption limit according to the law on export tax and import tax.

In addition, there are goods bought, sold, and exchanged to serve the production and consumption of border residents on the list of goods bought, sold, and exchanged by border residents according to regulations and within the limits exempted from import tax according to the law on export tax and import tax; national relics, antiques, and treasures according to the law on cultural heritage imported by competent state agencies.

Meanwhile, the Law also provides stricter regulations to ensure the management of customs agencies such as transferring goods from non-VAT to VAT to narrow the non-VAT subjects for fertilizers, fishing vessels in coastal areas, machinery and specialized equipment for agricultural production from non-VAT to 5% VAT; transferring goods from 5% VAT to 10% VAT to narrow the VAT subjects with low tax rates for "sugar; by-products in sugar production, including molasses, bagasse, sludge", "specialized equipment and tools for teaching, research, scientific experiments", "pre-processed rosin", "unprocessed forest products"...

Source: https://baophapluat.vn/mien-thue-vat-voi-hang-tri-gia-thap-bao-dam-cong-bang-ngan-ngua-gian-lan.html