Starting from February 18, 2025, imported goods valued at under 1 million VND sent through express delivery services will be subject to import tax and value-added tax (VAT).
End of Tax Exemption Policy for Low-Value Imports
On January 3, 2025, Deputy Prime Minister Ho Duc Phoc signed Decision No. 01/2025/QD-TTg, which officially abolishes Decision No. 78/2010/QD-TTg dated November 30, 2010, on tax exemption for low-value imported goods via express delivery.
Under the new regulation, imports valued at 1 million VND or below will no longer be tax-exempt. This means all imported goods, regardless of value, will now be subject to import tax and VAT according to current laws.
When Decision No. 78 was issued in 2010, Vietnam’s customs declaration system was primarily manual. At that time, tax exemption for small parcels was intended to reduce administrative procedures and speed up customs clearance. However, with the rapid growth of global and domestic e-commerce, this policy is now considered outdated.
Every day, 4–5 million low-value parcels are shipped from China to Vietnam through e-commerce platforms, creating significant pressure on tax administration.
Digital Customs Enhances Efficiency and Transparency
The introduction of the electronic customs declaration system has enabled faster clearance and streamlined tax management for large volumes of imported goods. Customs procedures are now fully digital, allowing businesses and individuals to declare online without physically visiting customs offices.
This modernized system ensures centralized, transparent, and efficient tax collection for express-imported goods while minimizing administrative costs and delays.
Ensuring Fair Competition and Domestic Production Balance
Experts have pointed out that domestically produced goods are still required to pay VAT, while low-value imported items previously enjoyed tax exemptions. This has led to unfair competition between domestic and imported goods of similar types.
By abolishing the old policy, Vietnam aims to create a level playing field, ensuring fair taxation and encouraging the consumption of domestically produced products.
The new regulation also aligns Vietnam’s tax policies with international practices, broadening the tax base and ensuring consistent revenue collection.