Proposal Submitted: Vietnam Plans to Impose 10% VAT on Imported Goods
Jayson 20 Jun 2024 12:04
It is reported that at present, an average of 4 million to 5 million small cross-border e-commerce parcels are shipped from China to Vietnam through platforms such as Shopee, Tiki and TikTok every day.
The average daily GMV is about 45 million to 63 million US dollars, and 1.3 billion to 1.9 billion US dollars per month.
According to the current laws of Vietnam, small parcels of cross-border e-commerce are exempt from VAT.
However, the Finance and Budget Committee of the National Assembly of Vietnam suggested that the government consider adopting a 10% VAT rate for small parcels of cross-border e-commerce to ensure fiscal revenue while protecting the rights and interests of local suppliers of similar products.
On the afternoon of June 17, Vietnamese Finance Minister Hu Defu, authorized by the Prime Minister of the Government, submitted a proposal to amend the "Value Added Tax Law" to the National Assembly. Subsequently, Li Guangmeng, Director of the Finance and Budget Committee of the National Assembly, submitted a review report on the amendment of the "Value Added Tax Law".
In introducing the assessment report on the proposed amendment to the Value Added Tax Law, Le Quang Manh pointed out that on average, 4 to 5 million small cross-border e-commerce orders from China come to Vietnam every day through e-commerce platforms such as Shopee, Tiki and TikTok. The value of these goods is generally between 100,000 and 300,000 Vietnamese dong (about 28-84 yuan).
The average daily GMV is about 45 million to 63 million US dollars, and 1.3 billion to 1.9 billion US dollars per month.
According to the current laws of Vietnam, small parcels of cross-border e-commerce are exempt from VAT.
However, the Finance and Budget Committee of the National Assembly of Vietnam suggested that the government consider adopting a 10% VAT rate for small parcels of cross-border e-commerce to ensure fiscal revenue while protecting the rights and interests of local suppliers of similar products.
On the afternoon of June 17, Vietnamese Finance Minister Hu Defu, authorized by the Prime Minister of the Government, submitted a proposal to amend the "Value Added Tax Law" to the National Assembly. Subsequently, Li Guangmeng, Director of the Finance and Budget Committee of the National Assembly, submitted a review report on the amendment of the "Value Added Tax Law".
In introducing the assessment report on the proposed amendment to the Value Added Tax Law, Le Quang Manh pointed out that on average, 4 to 5 million small cross-border e-commerce orders from China come to Vietnam every day through e-commerce platforms such as Shopee, Tiki and TikTok. The value of these goods is generally between 100,000 and 300,000 Vietnamese dong (about 28-84 yuan).
