The tax exemption for imported goods under 1 million VND sent via express delivery has been discontinued.

Deputy Prime Minister Ho Duc Phoc signed Decision No. 01/2025/QD-TTg dated January 3, 2025, abolishing entirely Decision No. 78/2010/QD-TTg dated November 30, 2010, regarding the tax-exempt value of imported goods sent via express delivery services.

This decision takes effect from February 18, 2025.

* On November 30, 2010, the Prime Minister issued Decision No. 78/2010/QD-TTg on the tax exemption threshold for imported goods sent via express delivery services.

The decision stipulates that imported goods sent via express delivery services with a value of 1 million VND or less are exempt from import tax and value-added tax.

Imported goods sent via express delivery services with a value exceeding 1 million VND are subject to import tax and value-added tax as prescribed by law.

It is known that when Decision No. 78/2010/QD-TTg was issued, the customs declaration system was purely manual, so the tax exemption policy in this Decision contributed to minimizing administrative procedures and speeding up customs clearance time, reducing the number of goods subject to tax declaration. However, this policy is no longer suitable today because e-commerce worldwide , as well as in Vietnam, has been growing very rapidly over the years. Every day, approximately 4-5 million small-value orders are shipped from China to Vietnam via e-commerce platforms.

Regarding customs procedures, the Automated Customs Management System at ports, warehouses, and yards (VASSCM) continues to be effectively implemented, contributing to simplifying procedures for moving goods out of warehouses, yards, and ports, reducing contact between customs authorities and businesses, reducing travel time for citizens, and overcoming congestion at port and warehouse gates. Thanks to the increased application of information technology and the adoption of modern customs management methods, over 99% of customs procedures are now carried out electronically through the Automated Customs Clearance System (VNACCS/VCIS).

The development and improvement of the aforementioned electronic customs declaration system has facilitated the rapid clearance of goods and made it easier to manage a large volume of daily customs declarations without disrupting trade operations. Customs declarants no longer need to visit customs offices to submit declarations online, thus reducing the number of declarants as procedures are conducted through agents and shipping companies. This allows for more centralized and faster management and tax collection for imported goods sent via express delivery services compared to the past.

Furthermore, some argue that even for the same type of goods, domestically produced goods are still subject to VAT, so exempting low-value imported goods via express delivery services from VAT inadvertently creates a price difference leading to unfair competition with similar domestically produced goods (which are subject to VAT), thereby affecting domestic production and consumption...

Based on the aforementioned legal and practical grounds, in order to ensure the consistency of tax policies and international practices for low-value imported goods sent via express delivery services, and to correctly implement the Party and State's guidelines and directions on encompassing all revenue sources, expanding the revenue base, while ensuring sufficient tax collection, fairness with domestic production, and encouraging the consumption of domestically produced goods, the Prime Minister issued Decision No. 01/2025/QD-TTg repealing Decision No. 78/2010/QD-TTg entirely.

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