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

Source: tuoitrenews.vn

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.

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