Automatic VAT collection for imported express delivery goods under 1 million VND

The customs authority has just announced the implementation of automatic value-added tax (VAT) collection on small-value imported goods via express delivery services, from August 1.

People receive goods in Ho Chi Minh City - Photo: QUANG DINH

Accordingly, customs will apply the automatic VAT collection process for imported shipments valued under VND1 million transported via express delivery. This is to resolve the problem that arose after the VAT exemption policy for goods under VND1 million was abolished.

According to authorities, every day there are 4-5 million small-value orders shipped from China to Vietnam via e-commerce platforms.

Previously, imported goods via express delivery with a value of less than 1 million VND were exempt from both import tax and value added tax (VAT).

However, according to the new policy from February 18, these shipments must pay VAT.

VAT collection is expected to contribute to supplementing resources for the State budget.

For example, goods with a VAT rate of 10% are estimated to increase budget revenue by about VND 2,700 billion.

But the challenge is that the customs system has not been updated to automatically collect this type of tax, leading to manual declaration and collection, which is a waste of resources.

To overcome this situation and create a legal and technical basis for automatic tax collection, the Ministry of Finance issued Circular 29 (effective from July 9).

The goal of automation is to modernize processes, reduce administrative procedures and ensure correct and sufficient tax collection for the State.

The implementation process will include a pilot phase from July 9 to 31 with a number of businesses. Then, from August 1, this process will officially apply to all express delivery businesses, regardless of the form of transport (air, road, rail).

According to the Tax Department, in the first half of this year, organizations and individuals doing business on e-commerce platforms and online channels paid about VND98,000 billion in taxes, an increase of 58% over the same period in 2024.

According to data from 439 platforms provided to tax authorities, the country currently has about 725,000 organizations and individuals doing business on e-commerce platforms, with a total transaction value of more than VND75,000 billion.

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HONG PHUC

Source: https://tuoitre.vn/thu-thue-vat-tu-dong-voi-hang-nhap-chuyen-phat-nhanh-duoi-1-trieu-dong-20250711102702731.htm