Vietnam enforces VAT automation for low-value imported goods
This move aims to modernize customs procedures, reduce manual handling, and ensure accurate VAT collection on low-value goods delivered via express services.
THE HANOI TIMES — The General Department of Customs has introduced a new regulation on the automatic collection of value-added tax (VAT) for low-value imported goods delivered via express courier services.
In Circular 29/2025/TT-BTC issued on July 11, the government aims to establish the legal and technical basis for automated VAT collection through the customs system to modernize procedures, reduce the administrative burden, and ensure accurate and sufficient tax collection.
From July 9 to 31, customs authorities will run a pilot phase with selected enterprises. Starting August 1, the regulation will be fully enforced for all express delivery companies operating by air, land, or rail.
Vietnamese customs on duty. Photo: VNA
Previously, goods imported to Vietnam valued under VND1 million (US$38.3) were exempt from import duties and VAT, as stipulated in Decision 78/2010/QD-TTg regarding tax exemptions for goods sent via express delivery.
However, on February 18, 2025, Decision 01/2025/QD-TTg officially ended this policy. The new rule exempts goods under VND1 million (US$38.3) from import duty, but they are now subject to VAT.
Before the effective date of this government decision, customs officers had not updated the system to collect VAT on low-value shipments. Consequently, officers and businesses processed tax declarations and payments manually, resulting in delays, increased labor costs, and a higher risk of errors.
