Blog > Marketplace News > Attention Shopee, TikTok Sellers: Vietnam Plans to Impose Low-value Goods Tax
Attention Shopee, TikTok Sellers: Vietnam Plans to Impose Low-value Goods Tax
Jayson 25 Apr 2024 11:25
According to Vietnamese media sources, with the prosperity of e-commerce platforms such as Shopee and TikTok Shop, the number of low-value imported goods has surged. Le Quang Manh, chairman of the Finance and Budget Committee of the country's National Assembly, proposed to tax low-value imported goods.
Under current regulations, imported items worth less than VND1 million (approximately US$39.30) and shipped via express services are not subject to import duties or VAT.
"Many countries have eliminated VAT exemptions for low-value goods to ensure fairness between domestic and foreign companies," Manh said.
He pointed out that the quantity of these goods used to be small, so taxation was of little significance, but with the boom of cross-border e-commerce, the number of these goods has surged in recent years.
Manh said that according to Vietnam Post and Telecommunications Group, nearly 5 million parcels were shipped from China to Vietnam every day in March 2023, with each parcel worth VND100,000 to VND300,000.
E-commerce platforms such as Shopee, Lazada, and TikTok enter $45-63 million worth of merchandise every day and $1.3-1.9 billion worth of merchandise every month.
Under current regulations, imported items worth less than VND1 million (approximately US$39.30) and shipped via express services are not subject to import duties or VAT.
"Many countries have eliminated VAT exemptions for low-value goods to ensure fairness between domestic and foreign companies," Manh said.
He pointed out that the quantity of these goods used to be small, so taxation was of little significance, but with the boom of cross-border e-commerce, the number of these goods has surged in recent years.
Manh said that according to Vietnam Post and Telecommunications Group, nearly 5 million parcels were shipped from China to Vietnam every day in March 2023, with each parcel worth VND100,000 to VND300,000.
E-commerce platforms such as Shopee, Lazada, and TikTok enter $45-63 million worth of merchandise every day and $1.3-1.9 billion worth of merchandise every month.
