On 3 January 2025, the Prime Minister of Vietnam issued Decision No. 01/2025/QD TTg, announcing the abolishment of import duty and value added tax exemptions for low value goods imported through express delivery service starting from 18 February 2025.

Previously, according to Decision No. 78/2010/QD TTg issued by the Prime Minister of Vietnam on 30 November 2010, imports valued at VND1 million or less which are sent via the express delivery service are exempt from import duty and value added tax. For imports valued over VND1 million which are sent via the express delivery service, import duty and value added tax shall be paid according to law.

While under Decision No. 01/2025/QD TTg, the above import duty and value added tax emptions will be completely abolished. For imports valued at VND1 million or less which are sent via the express delivery service, import duty and value added tax shall be paid according to law as well from 18 February 2025.

The abolishment of tax exemptions above will cause a significant rise in the cost of low value imported goods. The e-commerce sector, particularly cross-border e-commerce platforms will be affected significantly.  

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.