Deputy Prime Minister Ho Duc Phoc has signed Decision No. 01/2025/QD-TTg, which fully repeals the earlier Decision 78/2010/QD-TTg. The former one set a value threshold for imported goods shipped through courier services that qualified for import tax exemptions. The newly enacted decision removes this exemption and is set to take effect on February 18, 2025.
According to the previous decision, courier service imports valued at VND1 million or lower are exempt from taxes. In contrast, imports exceeding VND 1 million are liable for import taxes and VAT as mandated by law.
This policy has led to a substantial decrease in administrative burdens associated with the manual customs declaration system, thereby streamlining the customs clearance process and reducing the volume of goods that necessitate tax declarations.
However, it has become inadequate amid the rapid expansion of both global and domestic e-commerce in recent years. Approximately 4 to 5 million small-value orders are dispatched daily from China to Vietnam through various e-commerce platforms.
The customs procedures have significantly improved due to the enhanced application of information technology and the adoption of modern customs management methods. Currently, over 99 percent of customs procedures are conducted electronically through the Automated Customs Clearance System (VNACCS/VCIS), ensuring that commercial activities are not disrupted.
Customs declarants are no longer required to visit customs offices for declarations, as the process can be completed online. This shift has led to a reduction in the number of individuals making declarations, as procedures are now handled through agents and shipping companies. Consequently, the management and taxation of imported goods sent via express delivery services have become more centralized and efficient compared to previous practices.
In addition, some stakeholders argue that domestically produced goods of the same category are still subject to value-added tax (VAT). The exemption of VAT for low-value imported goods via express delivery services inadvertently creates a price disparity, resulting in unfair competition with domestically produced goods, which are subject to VAT. This situation ultimately impacts the production and consumption of local products.
Based on the aforementioned legal and practical foundations, it is essential to ensure the coherence of tax policies and international practices concerning low-value imported goods sent through express delivery services.
