Online purchase below VND2 mln may be exempt from Vietnam import tax

The Vietnamese Ministry of Finance has proposed exempting goods purchased through e-commerce platforms worth no more than VND2 million ($78) from import tariff, with an annual purchase limit of VND96 million ($3,781).

According to the ministry’s draft decree on customs management for imported goods through e-commerce, goods exceeding VND2 million or surpassing the tax exemption limit will be subject to import tax on the full order value.

Vietnamese consumers are no longer hesitant to purchase products from abroad thanks to the improved logistics system. Last year, there was a significant increase in imports through this channel, with over 324 million products entering Vietnam, generating VND14.2 trillion ($559.3 million) in sales, up nearly 38% and 43% year-on-year respectively, according to data platform provider Metric.

According to Metric, goods priced below VND200,000 ($7.87) accounted for more than half of total sales in Vietnam’s e-commerce market during the first nine months of 2024. On average, Vietnamese consumers spend VND900 billion ($35.45 million) on online shopping each month.

It is estimated that 4-5 million small-value orders are shipped daily from China to Vietnam via e-commerce platforms.

Vietnam's retail e-commerce market was estimated to top $25 billion in 2024, up 20% year-on-year, according to the Ministry of Industry and Trade. Tax revenue from e-commerce activities surged 20% year-on-year to VND116 trillion ($4.56 billion).

The draft decree also states that imported goods worth under VND1 million ($39) via express delivery will no longer be exempt from import tax and value-added tax (VAT) starting from February 18.

In 2024, the total value of goods imported via express delivery services reached VND27.7 trillion ($1.08 billion). The Ministry of Finance estimates that eliminating the tax exemption will increase annual VAT revenue by approximately VND 2.7 trillion ($106.2 million).