Why Exempt Billions of Dollars of Goods from Taxes When Entering Vietnam?

At the seminar “Improving Tax Administration Efficiency for E-commerce,” organized by the Government Portal on September 23, Ms. Lai Viet Anh, Deputy Director of the Department of E-commerce and Digital Economy, Ministry of Industry and Trade, shared that by 2023, the scale of Vietnam’s e-commerce market had reached $20.5 billion, accounting for 8% of the country’s total retail sales of goods and consumption services.

This achievement poses challenges for sustainable development, especially ensuring fair competition and tax compliance.

According to Assoc. Prof. Dr. Dinh Trong Thinh, former Head of the International Finance Faculty, Academy of Finance, while only a few thousand billion VND in taxes were collected from e-commerce in previous years, the amount has increased significantly from 2022 onwards. Specifically, VND 90,000 billion was collected in 2023, and it is expected to exceed VND 100,000 billion in 2024 from e-commerce activities.

However, Mr. Thinh emphasized the need for statistical data, large databases, and efficient management methods to provide evidence for accurate and sufficient tax collection from e-commerce platforms, especially the large ones.

Proposed VAT on Small and Casual Goods

Citing statistics indicating that Vietnam imports small and casual goods worth approximately $1.3-1.9 billion per month without paying taxes, Mr. Thinh suggested that this is a substantial amount. Therefore, policies and mechanisms are necessary to address this issue.

Currently, goods valued below VND 1 million and sent through express delivery services are exempt from import tax and input VAT (at the import stage) according to existing regulations.

Regarding this issue, Ms. Nguyen Thi Lan Anh, Director of the Department of Tax Management for Small and Medium Enterprises, Households, and Individuals, General Department of Taxation, shared that the Ministry of Finance has submitted to the Government for amendment and supplementation of the Value Added Tax Law. The proposal includes removing the provision for VAT exemption on small and casual goods.

Additionally, the Ministry of Finance is also submitting to the Government for amendments to Decree 12. They propose managing e-commerce by allowing organizations, individuals, and households to authorize e-commerce platforms to issue invoices on their behalf. “Through this solution, all e-commerce transactions, regardless of size or value, will be fully invoiced,” said Ms. Lan Anh.

According to Ms. Lan Anh, the issuance of complete invoices will support tax management, revenue management, and transaction legality verification. It will also help sellers prove the origin of goods, protect consumer rights, and contribute to fostering a fair and competitive market environment.