The Ministry of Finance has proposed to abolish the exemption of Value Added Tax for imported goods under 1 million VND in the draft Decree on customs management of imported and exported goods via e-commerce.
On November 9, the Ministry of Finance announced that it would abolish the tax exemption for imported goods valued at less than VND1 million sold through e-commerce platforms.
This decision was made in the context of many changes in international trade activities and to ensure trade fairness, in accordance with international practices.
According to the Ministry of Finance, the history of tax exemption regulations dates back to 2010, based on the Kyoto Convention on Harmonization and Simplification of Customs Procedures, the Ministry of Finance submitted to the Prime Minister Decision 78/2010/QD-TTg, regulating exemption of import tax and Value Added Tax for goods imported via express delivery services with a value of less than 1 million VND.
This price was determined based on the fact that 60%-70% of imported express goods at that time were worth about 1 million VND, equivalent to 50 USD, and the average duty-free rate of Asia- Pacific countries was about 130 USD. This regulation aims to simplify customs procedures and facilitate trade.
However, the international trade situation has changed significantly. Many countries have abolished the duty-free provision for low-value imported goods, including EU countries (abolishing VAT exemption for goods worth 22 euros or less), the UK (abolishing VAT exemption for goods worth 135 pounds or less from 2021), Singapore (abolishing VAT exemption for low-value goods, especially in e-commerce from 2023) and Thailand (collecting VAT on all imported goods, regardless of value, from May 2024). In addition, experts also recommended that Vietnam consider abolishing this tax exemption.
On that basis, the Ministry of Finance has proposed to abolish the exemption of Value Added Tax for imported goods under 1 million VND in the draft Decree on customs management of imported and exported goods via e-commerce.
However, the implementation of this Decree needs to be synchronized with the information technology system, so more preparation time is needed. Therefore, in order to meet practical requirements and recommendations of relevant agencies, the Ministry of Finance is urgently preparing a dossier to submit to the competent authority to abolish Decision 78/2010/QD-TTg. This will be carried out in accordance with the order and procedures of the Law on Promulgation of Legal Documents, regardless of the progress of the Decree project, ensuring compliance with international practices and the development trend of cross-border e-commerce.
In addition, the Ministry of Finance has proposed to abolish the exemption of Value Added Tax for imported goods under 1 million VND in the draft Decree on customs management of imported and exported goods via e-commerce. This is an important step to ensure trade fairness and enhance tax management efficiency in the context of increasingly growing e-commerce./.
Source: https://baolangson.vn/se-bo-mien-thue-hang-nhap-khau-duoi-1-trieu-dong-ban-qua-san-thuong-mai-dien-tu-5027894.html
![[Photo] General Secretary To Lam attends the launch of 3 digital platforms serving the implementation of Resolution No. 57-NQ/TW](https://vphoto.vietnam.vn/thumb/402x226/vietnam/resource/IMAGE/2025/7/2/d7fb7a42b2c74ffbb1da1124c24d41d3)
Comment (0)