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Home News Vietnam imposing VAT on express imported goods under $40

Vietnam imposing VAT on express imported goods under $40

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Vietnam imposing VAT on express imported goods under $40

Vietnam imposing VAT on express imported goods under $40

Vietnam is set to impose a value-added tax (VAT) on imported goods valued below $40, which are transported via express shipments. This move aims to increase tax collection on cross-border e-commerce transactions, primarily focusing on low-value goods that have been bypassing taxes due to their minimal worth.

The government’s decision comes as part of broader efforts to regulate and streamline the rapidly growing e-commerce sector. As online shopping continues to expand, especially during the pandemic, the volume of small-value imports has surged, leading to significant tax revenue losses.

The new VAT rules will affect goods such as electronics, clothing, cosmetics, and other consumer products commonly bought through international e-commerce platforms. The tax rate is expected to be applied to shipments arriving via express couriers like DHL, FedEx, and others, which often handle small-value parcels.

With this tax imposition, Vietnam aims to create a more level playing field for local businesses and encourage fair competition. The government has also emphasized that the move is in line with international tax practices and will help curb potential revenue leakage from informal channels.

This policy is set to take effect soon, and businesses involved in cross-border e-commerce are advised to ensure compliance with the new tax framework to avoid penalties and ensure smooth customs procedures.