Imported goods worth less than 1 million VND will be automatically subject to VAT from August 1

The Customs Department has just announced the plan to implement Circular 29/2025 of the Ministry of Finance, on the mechanism of automatic value-added tax (VAT) collection for imported goods of small value (under 1 million VND), transported through express delivery services, officially starting from August 1, 2025.

According to the new regulations, imported shipments with a value of less than 1 million VND will be subject to automatic VAT collection through express delivery units. This is a measure to overcome problems arising after the VAT exemption policy for low-value imported goods was abolished.

Statistics from authorities show that previously, every day there were about 4-5 million small-value orders (under 1 million VND) shipped from China to Vietnam through e-commerce platforms.

Before the new policy took effect, shipments valued under VND1 million were exempt from both import tax and VAT.

Automatic value-added tax (VAT) collection on goods worth less than 1 million VND, imported via express delivery service from August 1, 2025.

According to the new regulations, from February 18, these shipments must pay VAT. The implementation of VAT collection not only ensures financial obligations in accordance with regulations but also contributes to increasing revenue for the State budget. With a VAT rate of 10%, it is expected that budget revenue can increase by about VND 2,700 billion per year.

However, in the initial stages of policy implementation, the customs system was not upgraded in time to automatically collect taxes, leading to manual implementation, incurring costs and increasing pressure on both management agencies and businesses.

In order to overcome the above situation and create a legal and technical foundation for automatic tax collection, the Ministry of Finance issued Circular No. 29, effective from July 9. This Circular lays the foundation for modernizing the tax collection process, minimizing administrative procedures and ensuring the principle of correct and sufficient collection for the State budget.

According to the implementation roadmap, after the pilot phase, from August 1, the automatic VAT collection process will be applied uniformly to all businesses providing express delivery services, regardless of the method of transportation.

vov.vn

Source: https://baolaocai.vn/hang-nhap-khau-tri-gia-duoi-1-trieu-dong-bi-thu-thue-vat-tu-dong-tu-18-post648579.html