VCCI: Consider regulations on online import tax exemption for small value orders

Import tax exemption for small value orders

The Ministry of Finance is seeking comments on a draft Decree regulating customs management of exported and imported goods traded via e-commerce.

Based on business opinions, the Vietnam Federation of Commerce and Industry (VCCI) made a number of contributions and proposals.

Regarding the regulation on import tax exemption for small value orders, Article 12 of the draft stipulates import tax exemption for small value orders (from 1 million VND or less).

However, according to VCCI, this mechanism is not really suitable and risks continuing to create inequality with domestically produced goods.

According to VCCI's analysis, most imported goods will be exempt from import tax because the value of each e-commerce order is usually low, usually not exceeding 1 million VND. For example, in 2024, more than 324.1 million imported products were sold through Shopee, generating revenue of 14.2 trillion VND, or an average value of only about 43,682 VND/product. Thus, the 1 million VND threshold regulation means that most imported e-commerce goods will not be subject to import tax.

In addition, the above regulation creates inequality with domestically produced goods. Domestic enterprises must pay import tax on imported raw materials to produce goods, while e-commerce goods are completely exempt from import tax. This invisibly creates inequality in tax policy, creating a competitive advantage for foreign goods.

VCCI recommends considering applying a comprehensive import tax policy, without exemptions or reductions for imported e-commerce goods.

Therefore, it is necessary to consider applying a comprehensive import tax policy, without exemptions for imported e-commerce goods.

However, according to VCCI, the development of import tax policies for imported e-commerce goods will face many challenges. It is difficult to apply HS code regulations like traditional imported goods to e-commerce goods.

VCCI recommends that the drafting agency consider revising the regulations on import tax on e-commerce goods, in the direction of regulating simplified tax rates and applying them to all e-commerce orders regardless of value.

Exemption from license and specialized inspection for small value goods

Article 11.1 The draft is expected to allow exemption from licenses, conditions, and specialized inspections for imported goods with a value of 1 million VND or less, but the total value each year must not exceed 48 million VND for each organization or individual. The regulation is being designed in the direction of management by the buyer (importer).

However, VCCI believes that this regulation may not be really suitable for the characteristics of e-commerce and may create loopholes in policy design. Similar to the analysis above, the application of the 1 million VND threshold has almost no significant effect when most of the current imported goods have low value. This leads to the consequence that most e-commerce goods will not be subject to licensing or specialized inspection, even though the total value of goods sold to Vietnam may be very large, causing inequality with domestic goods.

The current design approach is still based on the mindset of traditional import activities, while there is a clear difference between traditional import and e-commerce import.

Therefore, instead of continuing to manage by buyer, it is possible to switch to managing by seller. This mechanism will simultaneously ensure risk management, thereby focusing on managing goods with large transaction volumes in the market.

VCCI recommends that the drafting agency consider building a mechanism for managing licenses and specialized inspection of goods by seller.

In addition, VCCI recommends that the drafting agency supplement regulations on cases that are not exempted from licenses, conditions, and specialized inspections in the direction of not applying the warning regulations to orders that have sent information to the system.

VCCI also gave comments on regulations for physical inspection of goods and handling in case of system failure.

Minh Thu

Source: https://doanhnghiepvn.vn/chuyen-doi-so/kinh-te-so/vcci-quy-dinh-mien-thue-nhap-khau-truc-tuyen-voi-don-hang-gia-tri-nho-la-chua-phu-hop/20250524092603517