Vietnam to Scrap VAT Exemption on Low-Value Imports via E-Commerce Platforms

Vietnam will eliminate the VAT exemption on products valued below VND1 million imported via e-commerce platforms
Other countries have scrapped similar policies, such as the EU requiring taxes on goods valued below $22 and Singapore collecting VAT on low-value products
Thailand has imposed a seven-percent VAT on all imports
The government is proposing mandatory regulations for e-commerce platforms to declare and pay taxes on behalf of traders
Relevant ministries will develop databases about traders on e-commerce platforms
Approximately four to five million low-value orders were sent from China to Vietnam via e-commerce platforms per day in March 2023
Vietnam is losing significant tax revenue due to the VAT exemption for low-value products
The VAT exemption is negatively impacting local producers and retailers
The total loss from the VAT exemption is greater than expected

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.