In recent years, many countries have abolished the VAT exemption for small-value imported goods. In line with this trend, the National Assembly's Finance and Budget Committee has proposed policies to expand VAT to imported goods sent via express delivery through platforms such as Shopee, Lazada, and TikTok.

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Minister of Finance Ho Duc Phoc presented the report this afternoon. Photo: National Assembly


In recent years, many countries have abolished the VAT exemption for small-value imported goods. In line with this trend, the National Assembly's Finance and Budget Committee has proposed policies to expand VAT to imported goods sent via express delivery through platforms such as Shopee, Lazada, and TikTok.

On the afternoon of June 17, Minister of Finance Ho Duc Phoc submitted the draft Law on Value Added Tax (amended) to the National Assembly. The draft includes amendments and supplements to regulations on:

- Taxpayers

- Non-taxable subjects

- Taxable price

- Tax rate

- Tax deduction method

- Direct calculation method on VAT

- Input VAT deduction

- Cases of tax refund

- Invoices and documents

- Effective date

- Implementation organization

The draft Law also introduces new regulations on the time of determining VAT and specifies prohibited acts. Additionally, it exempts gifts, presents, and movable assets within the import tax exemption limit from VAT.

Under current government regulations, imported goods valued at less than 1 million VND sent via express delivery are exempt from import tax and input VAT. Gifts and presents are also exempt from import tax according to Decree 134, which guides the Law on Export and Import Tax.

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Chairman of the NA Finance and Budget Committee Le Quang Manh presented the review report. Photo: National Assembly

However, the Chairman of the National Assembly's Finance and Budget Committee, Le Quang Manh, highlighted that the rise of cross-border e-commerce has significantly increased the volume of small-value transactions. In Vietnam, an average of 4-5 million small-value orders are shipped daily from China to Vietnam via platforms like Shopee, Lazada, Tiki, and TikTok.

Data from the Vietnam Posts and Telecommunications Corporation indicated that in March 2023, the value of each order ranged from 100,000 to 300,000 VND, with an average daily circulation of goods worth 45-63 million USD through these platforms.

Many countries have eliminated the VAT exemption for small-value imported goods to protect revenue sources and ensure a level playing field between domestically produced and imported goods. In light of this, the Finance and Budget Committee recommends that the Government implement appropriate policies to expand revenue sources, especially given current budget constraints.

Chairman Le Quang Manh noted that Vietnam's current general VAT rate of 10% is lower than the regional and global averages. The average VAT rate in Asia is 12%, Latin America 14%, Africa 16%, OECD countries 19%, and the EU 22%, with a global average of 15%.

Some ASEAN countries have already increased their VAT rates to improve budget collection efficiency post-pandemic. The strategy for reforming the tax system until 2030 also suggests researching the possibility of increasing VAT rates according to a roadmap.

The Finance and Budget Committee proposed that the Government assess the impact of various options to increase tax rates. These assessments should consider the possibility of raising VAT rates in the draft law appropriately after the economy recovers, potentially towards the end of the 2026-2030 period.

Tran Thuong