From February 18, 2025, will the tax exemption for express delivery imports under 1 million VND be terminated in Vietnam?

From February 18, 2025, will the tax exemption for express delivery imports under 1 million VND be terminated in Vietnam?

On January 03, 2025, the Prime Minister issued Decision 01/2025/QD-TTg abolishing Decision 78/2010/QD-TTg regarding the import commodity value via express services that are exempted from tax.

Referring to Article 1 of Decision 78/2010/QD-TTg, it is regulated as follows:

- Imported goods sent via express services with a value of 1,000,000 VND (one million VND) or less are exempt from import tax and value-added tax.

- Imported goods sent via express services with a value exceeding 1,000,000 VND (one million VND) must pay import tax and value-added tax according to legal regulations.

Therefore, when Decision 01/2025/QD-TTg takes effect from February 18, 2025, express delivery imports valued under 1 million VND will no longer be exempt from import tax.

From February 18, 2025, will the tax exemption for express delivery imports under 1 million VND be terminated in Vietnam?. (Image from the Internet)

Who is responsible for notification of use of duty-free imports in Vietnam?

Based on Article 31a of Decree 134/2016/ND-CP, supplemented by clause 15, Article 1 of Decree 18/2021/ND-CP, organizations and individuals using the goods (project owners; entities operating production, business; shipbuilding facilities; entities conducting petroleum activities) referred to as project owners, are responsible for notifying the utilization of duty-free goods according to the information indicators prescribed in Form No. 07 Appendix VIIa issued together with Decree 18/2021/ND-CP through the Electronic Data Processing System or Form No. 18 Appendix VII issued with Decree 18/2021/ND-CP to the customs authority where they submit the Duty-Free List in cases where notification to customs is required (i).

In the case of duty-free import as a combination or production line requiring multiple shipments which do not deduct the quantity of goods at the time of customs declaration registration, besides regulations in (i), the project owner shall proceed as follows:

+ Within 30 days from the completion date of the installation of the combination or production line, the project owner shall notify the customs authority where the Duty-Free List is submitted about the completion of installation according to the information indicators prescribed in Form No. 09 Appendix VIIa issued with Decree 18/2021/ND-CP through the Electronic Data Processing System or Form No. 20 Appendix VII issued with Decree 18/2021/ND-CP.

In the case of unmet utilization, within 30 days from the completion date of the installation of the combination or production line, the project owner must register a new customs declaration form and declare and pay taxes at the time of new customs declaration registration.

+ Within 60 days from the date of receiving the completion notification from the project owner regarding the combination or production line installation, the customs authority at the place of duty-free list reception conducts inspections at the project owner's premises to ascertain that duty-free imported goods were used correctly for the installation purpose of the duty-free combination or production line. Should the customs find that the project owner did not fully use or change the intended use of the duty-free goods within the combination or line without registering a new customs declaration, the customs will impose tax sanctions according to the regulations.

+ The project owner shall report the status of the usage of imported goods to finalize the installation of the combination or production line as per the guidance of (i). From the year of combination or production line installation completion, the project owner shall also report the utilization of products post-installation.

Regarding the timing and deadline for notifications, it is on an annual basis, within 90 days from the end of the fiscal year. Organizations and individuals are to report the utilization of duty-free goods within the fiscal year to the customs authority where the Duty-Free List is received until the entire project ceases operation, or the goods have been re-exported out of Vietnam, or the goods change their duty-free purpose of use, are domestically consumed, or have been destroyed.

What are regulations on the inspection of use of duty-free imports in Vietnam?

According to clause 4, Article 31a of Decree 134/2016/ND-CP, supplemented by clause 15, Article 1 of Decree 18/2021/ND-CP, the customs authority where the Duty-Free List notification is submitted conducts inspections of duty-free goods usage at the project owner's location under a risk management approach.

The inspection of the use of duty-free imported goods is implemented following the post-customs clearance check procedures and formalities.