April 2, 2025 | 17:26 GMT +7

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Monday- 20:05, 17/02/2025

Vietnam officially imposes VAT on low-value imports

(VAN) From February 18, low-value imported products that are delivered through express delivery service will no longer be exempt from value-added tax (VAT) and will be subject to current regulations.

Some countries, including the EU, United Kingdom, Australia, Singapore, and Thailand, have recently discontinued VAT exemption on low-value imports, according to the Vietnam General Department of Customs.

In this international context, the Prime Minister has issued Decision No. 01, which requires that low-value imports shipped via express delivery services will not be exempt from value-added tax (VAT) effective February 18, 2025. The Law on Value-Added Tax and pertinent legal documents will govern the declaration and payment of VAT on low-value imports.

Low-value imports sent via express delivery services will no longer be exempt from VAT starting February 18, 2025.

Low-value imports sent via express delivery services will no longer be exempt from VAT starting February 18, 2025.

The Vietnam General Department of Customs has stated that the current regulation requires the declaration of low-value products that are exempt from tax and are sent via express delivery services by air and sea using the MIC and MEC declarations in the VNACCS system, which does not have a tax calculation function. In order to prevent system overload in VNACCS, products that are transported via express delivery services by road and rail are declared using paper declarations.

The Remote Customs Declaration System is the method by which the General Department of Customs intends to implement customs procedures for products that are exported or imported via express delivery services. In spite of this, the VNACCS system upgrade is not feasible at this time due to the requirement for investment funding.

Consequently, in the absence of a supporting system and in order to implement Decision No. 01/2025/QĐ-TTg, which will take effect on February 18, 2025, the General Department of Customs intends to submit a proposal to the Ministry of Industry and Trade for the issuance of guidance documents to provincial and municipal customs departments, as well as international express delivery service providers.

The General Department of Customs has developed materials and resources to aid businesses and individuals who are experiencing challenges with tax payments for low-value imported products that are sent via express delivery services. Assistance is accessible via email at bophanhotrotchq@customs.gov.vn and the helpline at 19009299 (section No. 2).

Author: Dong Thai

Translated by Linh Linh

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