Are imports sent by express delivery services exempt from VAT in Vietnam?
Are imports sent by express delivery services exempt from VAT in Vietnam?
Based on Article 1 of Decision 78/2010/QD-TTg by the Prime Minister of the Government of Vietnam, which regulates the value of goods imported via express delivery service that are exempt from taxes as follows:
Imported goods sent through express delivery services with a value of 1,000,000 VND (one million VND) or less are exempt from import duties and value-added tax.
Imported goods sent through express delivery services with a value of more than 1,000,000 VND (one million VND) must pay import duties and value-added tax in accordance with the law.
However, based on Article 1 and Article 2 of Decision 01/2025/QD-TTg stipulating the complete abolition of Decision 78/2010/QD-TTg as follows:
Complete Abolition of Decision
Completely abolishing Decision No. 78/2010/QD-TTg dated November 30, 2010, of the Prime Minister of the Government of Vietnam on the exempt tax value of goods imported via express delivery services.
Effective Clauses
- This decision is effective from February 18, 2025.
- Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairpersons of People's Committees of provinces and centrally-run cities, and relevant units are responsible for implementing this decision.
Simultaneously, based on item 1 of Official Dispatch 1813/BTC-TCHQ in 2025 as follows:
Regarding Tax Policy Application:
Based on the Law on Value-Added Tax No. 13/2008/QH12 dated June 3, 2008;
Based on the Law on Export and Import Duties No. 107/2016/QH13 dated April 6, 2016;
Based on Decree No. 134/2016/ND-CP dated September 1, 2016, of the Government of Vietnam stipulating details and measures to implement the Law on Export and Import Duties amended, supplemented at Decree No. 18/2021/ND-CP dated March 11, 2021, of the Government of Vietnam;
Based on Decision No. 01/2025/QD-TTg dated January 3, 2025, of the Prime Minister of the Government of Vietnam abolishing the entire Decision No. 78/2010/QD-TTg dated November 30, 2010, of the Prime Minister of the Government of Vietnam regarding the exempt tax value of goods imported via express delivery services.
Based on the above-mentioned regulations, imported goods sent through express delivery services are not exempt from VAT from February 18, 2025; the declaration and payment of VAT for goods imported via express delivery services are implemented in accordance with the provisions of the Law on VAT and relevant legal documents.
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Thus, from February 18, 2025, when Decision 01/2025/QD-TTg takes effect, imported goods under one million VND in particular and imported goods sent via express delivery services, in general, are not exempt from VAT.
Are imports sent by express delivery services exempt from VAT in Vietnam? (Image from the Internet)
From July 1, 2025, which entities are VAT taxpayers in Vietnam?
Based on Article 4 of Law on Value-Added Tax 2024 (effective from July 1, 2025) regulating VAT taxpayers as follows:
(1) Organizations, households, individuals producing and trading goods and services subject to value-added tax (hereinafter referred to as business establishments).
(2) Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).
(3) Organizations and individuals doing business in Vietnam purchasing services (including the case of services associated with goods) from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam, except for cases stipulated in (4) and (5); organizations doing business in Vietnam buying goods, services to conduct oil and gas exploration, development, and exploitation activities from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam.
(4) Foreign suppliers without a permanent establishment in Vietnam engaging in e-commerce, business based on digital platforms with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations that manage foreign digital platforms deduct and pay taxes on behalf of foreign suppliers; organizations doing business in Vietnam applying the VAT deduction method purchasing services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms deduct and pay on behalf of foreign supplier tax obligations.
(5) Organizations managing e-commerce trading floors, platform managers with payment functions, deducting, paying taxes on behalf, declaring deducted taxes for business households, individual businesses on the e-commerce platform, digital platform.
(6) the Government of Vietnam provides detailed regulations on item (1), (4,) and (5); regulations on taxpayers in the case foreign suppliers provide services to buyers who are business organizations in Vietnam applying the tax deduction method.
What are the conditions for input VAT deduction in Vietnam from July 1, 2025?
Based on clause 2, Article 14 of Law on Value-Added Tax 2024 (effective from July 1, 2025) stipulating conditions for input VAT deduction as follows:
- Have value-added tax invoices for purchasing goods, services or documents evidencing the payment of value-added tax at the import stage or documentation evidencing the payment of value-added tax on behalf of foreign parties stipulated in clauses 3 and 4, Article 4 of Law on Value-Added Tax 2024. The Minister of Finance regulates the documents evidencing the payment of value-added tax on behalf of foreign parties;
- Have non-cash payment documents for goods and services purchased, except for some specific cases as regulated by the Government of Vietnam;
- For exported goods and services, in addition to the conditions stipulated in point a and point b of this clause, there must also be: contracts signed with foreign parties for the sale, processing of goods, or provision of services; invoices for sale of goods or services, non-cash payment documents, customs declarations for exported goods, packing slips, bills of lading, insurance documents for goods (if any). the Government of Vietnam regulates the conditions for deduction in cases of goods exported via foreign e-commerce platforms and certain other specific cases.
