Is there a Decision 01/2025 on annulment on the import duty exemption under 1 million VND sent via express delivery to Vietnam?

Is there a Decision 01/2025 on annulment on the import duty exemption under 1 million VND sent via express delivery to Vietnam?

On January 3, 2025, the Prime Minister issued Decision 01/2025/QD-TTg..Download annuling the entire Decision 78/2010/QD-TTg regarding the value of imported goods sent via express delivery service that are tax-exempt.

Decision 01/2025/QD-TTg will take effect from February 18, 2025.

To be specific: Article 1 of Decision 78/2010/QD-TTg stipulates that imported goods sent via express delivery service valued at 1,000,000 VND (one million VND) or less will be exempt from import tax and value-added tax.

Imported goods sent via express delivery service valued over 1,000,000 VND (one million VND) must pay import tax and value-added tax according to the legal regulations.

Thus, from February 18, 2025, when Decision 01/2025/QD-TTg..Download comes into effect, imported goods under 1 million VND sent via express delivery will no longer be exempt from import tax and value-added tax.

Is there a Decision 01/2025 on annulment on the import duty exemption under 1 million VND sent via express delivery to Vietnam? (Image from the Internet)

Which entities are export and import duty payers in Vietnam in 2025?

According to Article 3 of the Law on Export and Import Duties 2016, taxpayers for export and import duties include:

- Owners of exported and imported goods.

- Organizations entrusted with exportation and importation.

- Individuals exiting or entering the country with exported or imported goods, sending or receiving goods through Vietnam's borders.

- Persons authorized, guaranteed, and responsible for paying tax on behalf of taxpayers, including:

+ Customs procedure agencies when authorized by taxpayers to pay export and import duties;

+ Enterprises providing postal services, international express delivery services paying tax on behalf of taxpayers;

+ Credit institutions or other organizations functioning under the Law on Credit Institutions acting as guarantors, paying tax on behalf of taxpayers;

+ Persons authorized by goods owners when goods are gifts from individuals; luggage sent before or after the travel of individuals exiting or entering the country;

+ Branches of enterprises authorized to pay tax on behalf of enterprises;

+ Others authorized to pay taxes on behalf of taxpayers, as per legal regulations.

- Individuals purchasing or transporting goods within the tax-exemption limits by border residents but not using them for production or consumption, instead selling them in the domestic market; and foreign traders permitted to conduct business in exported and imported goods in border markets according to legal regulations.

- Individuals with exported or imported goods that fall under tax-exempt categories but later change and become taxable as regulated by law.

- Other cases as prescribed by law.

What is the basis for calculating export and import duties for goods using direct method in Vietnam in 2025?

According to Article 5 of the Law on Export and Import Duties 2016, the basis for calculating export and import taxes for goods using the direct method is as follows:

- The amount of export and import tax is determined based on the taxable value and tax rate as a percentage (%) of each item at the time of tax calculation.

- Export tax rates are specified for each item in the export tariff.

In cases where goods are exported to countries, groups of countries, or territories that have agreements on preferential export tariffs in trade relations with Vietnam, these agreements shall apply.

- Import tax rates include preferential, special preferential, and ordinary rates and are applied as follows:

+ Preferential rates apply to imported goods originating from countries, groups of countries, or territories that implement Most Favored Nation (MFN) treatment in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market that meet the origin conditions from countries, groups of countries, or territories that implement MFN treatment in trade relations with Vietnam;

+ Special preferential rates apply to imported goods originating from countries, groups of countries, or territories that have special agreements on preferential import tariffs in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market that meet the origin conditions from countries, groups of countries, or territories that have special agreements on preferential import tariffs in trade relations with Vietnam;

+ Ordinary rates apply to imported goods not falling under points a and b of this clause. The ordinary rate is specified at 150% of the preferential rate for each corresponding item. In cases where the preferential rate is 0%, the Prime Minister of Vietnam shall decide on the application of the ordinary rate based on regulations outlined in Article 10 of the Law on Export and Import Duties 2016.