Implement tax collection on low-value imported goods sent via express delivery service

(HQ Online) - In order to implement value-added tax (VAT) collection according to Decision No. 01/2025/QD-TTg dated January 3, 2025 of the Prime Minister, the General Department of Customs said that low-value imported goods sent via express delivery services are not exempt from VAT from February 18, 2025.

Ensuring harmony with international practices

On January 3, 2025, the Prime Minister issued Decision No. 01/2025/QD-TTg, completely abolishing 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.

Accordingly, low-value imported goods sent via express delivery services are not exempt from VAT from February 18, 2025. At the same time, the declaration and payment of VAT for low-value imported goods shall be carried out in accordance with the provisions of the Law on VAT and relevant legal documents.

The General Department of Customs said that the abolition of Decision No. 78/2010/QD-TTg was carried out on the basis of ensuring harmony with international practices and the consistency of the current system of legal documents on tax, ensuring fair competition between entities participating in commodity trading activities. Strengthening the implementation of state management and solutions to prevent and combat trade fraud and tax evasion for imported goods in general and imported goods of small value in particular.

Express delivery control activities at Xuan Cuong Friendship Joint Stock Company. Photo: H.Nu

According to the General Department of Customs, the abolition of Decision No. 78/2010/QD-TTg will ensure compliance with legal trends and international practices. Specifically, in recent years, EU countries have abolished the VAT exemption for shipments of 22 Euros or less.

Typically, in the United Kingdom (England, Scotland and Wales), the VAT exemption for imported goods with a total value of 135 GBP or less was abolished from January 1, 2021. Or in Australia, the VAT exemption for goods with a value of 666 USD or less was also abolished.

Similarly, in Singapore, from January 1, 2023, the VAT exemption for low-value goods, especially in the e-commerce sector, will also be abolished.

To ensure fair trade practices, from May 1, 2024, Thailand will also collect VAT on all imported goods, regardless of value.

The General Department of Customs emphasized that the abolition of the regulation on VAT exemption for small-value goods in Decision No. 78/2010/QD-TTg will contribute to supplementing state budget resources and promoting the competitiveness of domestic goods with imported goods.

In addition, the abolition of Decision No. 78/2010/QD-TTg will ensure fairness between state inspection of food safety and quality inspection of domestically produced small-value goods and imported small-value goods via express delivery services, because currently, small-value goods imported via express delivery services under Decision No. 78/2010/QD-TTg are exempted from specialized inspection and food safety inspection. This contributes to encouraging the consumption of domestically produced small-value goods, contributing to the implementation of Directive 03-CT/TW dated May 19, 2021 of the Secretariat on strengthening the Party's leadership of the Campaign "Vietnamese people prioritize using Vietnamese goods" in the new situation.

Customs actively supports

The General Department of Customs said that Decision No. 78/2010/QD-TTg does not regulate administrative procedures, so the abolition of this Decision will not affect current administrative procedures. However, while waiting for the system to be upgraded, customs declarants must declare additional information on paper declarations and detailed lists of goods to serve the purpose of declaring and paying VAT.

Accordingly, the Customs authority must organize the collection of VAT. While the Customs authority's system is not yet complete, a large amount of work will arise for officers and civil servants receiving declaration registrations due to having to check and confirm the completion of tax obligations manually; it is not convenient to manage and compile data (data is compiled on paper declarations and on the Low Value Declaration System).

The General Department of Customs plans to carry out customs procedures for import and export goods sent via express delivery service on the Remote Customs Declaration System. However, the upgrade of the VNACCS System cannot be carried out immediately.

Currently, the General Department of Customs is implementing Contract No. 05092024/HDKT/CNTT-HITD dated September 16, 2024 "Building a Customs Clearance Processing System when VNACCS/VCIS has problems (Remote Customs Declaration System)". Therefore, to implement Decision No. 01/2025/QD-TTg abolishing Decision No. 78/2020/QD-TTg effective from February 18 during the time when the Support System is not available, the General Department of Customs plans to submit to the Ministry of Finance a document guiding the implementation to the provincial and municipal customs departments and international express delivery service businesses.

The General Department of Customs has prepared content and documents, ready to support when people and businesses encounter difficulties and problems in the process of paying taxes on low-value imported goods sent via express delivery service through the Support Center: 19009299, extension 2 and email address bophanhotrotchq@customs.gov.vn.

Source: https://haiquanonline.com.vn/trien-khai-thu-thue-doi-voi-hang-nhap-khau-tri-gia-thap-gui-qua-dich-vu-chuyen-phat-nhanh-193727.html