The Ministry of Finance (MOF) has proposed to reduce the import duty exemption threshold for goods purchased via cross-border e-commerce from VND 2 million to VND 1 million per order, under the latest draft decree on customs management for e-commerce transactions.
Additionally, each organization or individual would only be eligible for this tax exemption policy on imported goods up to a total value of VND 48 million per year.
E-Commerce Growth and Tax Challenges
According to the MOF, Vietnam’s e-commerce sector has experienced robust growth in recent years.
Data from the Ministry of Industry and Trade (MOIT) shows that the market has been expanding both in scale and diversity of business models, with an annual growth rate of 15–20%.
However, this rapid growth has raised new challenges for tax administration, particularly with cross-border online transactions that can be used to evade taxes, resulting in potential state revenue losses.
Key difficulties include:
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Businesses operating without a physical presence in Vietnam.
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Servers and transaction systems located abroad.
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Untraceable payment methods, including cash-on-delivery and cryptocurrency.
These factors make it challenging for authorities to identify taxpayers, assess tax bases, and monitor cross-border transactions.
Proposed Adjustment to Tax-Free Import Value
To ensure fair taxation, limit budget revenue losses, and align with international practices, the MOF proposes that imported goods transacted via e-commerce with a customs value of up to VND 1 million per order be exempted from import tax.
This represents a 50% reduction compared to the current threshold of VND 2 million per order.
Furthermore, each buyer would be eligible for this tax-free treatment only up to VND 48 million per year, preventing large-scale importers from exploiting the policy.
Context: VAT and Global Regulatory Trends
Earlier, the Prime Minister abolished the VAT exemption for imported e-commerce goods valued at VND 1 million or less.
Since February 18, 2025, all low-value imported parcels delivered via international express services are now subject to VAT.
Vietnam’s move is consistent with global tax reform trends aimed at managing cross-border e-commerce flows:
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Thailand applies 7% VAT on low-value imports from China priced below 1,500 baht (~VND 1.1 million).
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South Korea is revising its E-Commerce Act to require foreign platform operators to establish local offices.
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China mandates that e-commerce sellers pay corporate income tax and VAT, while limiting cross-border imports to approved retail product lists and final consumer transactions only.
These international measures aim to create fair competition between domestic and foreign sellers while securing tax revenue from the rapidly expanding online retail ecosystem.