VAT exemption ends for de minimis imports from February 18

HCMC – Low-value goods imported into Vietnam via express delivery services will no longer be eligible for a value-added tax (VAT) exemption, with effect from February 18, according to a new decision by the prime minister.

Decision No. 01/2025/QD-TTg officially repeals Decision No. 78/2010/QD-TTg dated November 30, 2010, regarding the value threshold for goods imported through express delivery services that were eligible for the de minimis tax exemption.

According to the General Department of Vietnam Customs, Decision No. 78 was initially aimed at facilitating international trade and promoting the development of express delivery services.

However, in the current conditions, tax regulations, growth of e-commerce, and international practices have undergone significant changes, necessitating policy adjustments to align with the new situation.

The current VAT Law and the VAT Law No. 48/2024/QH15 issued last year by the National Assembly do not include provisions for the de minimis VAT exemption on items imported into the country.

Therefore, the repeal of Decision No. 78/2010/QD-TTg is expected to bring several benefits. It is estimated that if items that cost less than VND1 million are subject to a 10% VAT, State budget revenue could increase by around VND2.7 trillion.

This ensures fair competition between domestic and imported goods, promoting local production. The policy also aligns with the global trend of imposing VAT on low-value imported goods in many countries and territories.

However, the customs authorities said that the VAT collection on low-value imported items presents several challenges, as the customs declaration system and related procedures are not yet designed to efficiently handle this tax collection, according to the Vietnam News Agency.

Minh Anh

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