Vietnam to start automatic VAT collection for low-value express imports in August

The move targets imported shipments valued under VND1 million (US$38), which are transported via cross-border e-commerce platforms, mainly from China.

This change followed the cancellation of a previous policy that exempted such goods from VAT and import duties.

Since February 18, these goods have been subject to VAT, although import duties remain exempt.

The VAT collection is aimed at contributing to strengthening the state budget.

Up to five million low-value packages are delivered daily from China to Vietnam through e-commerce channels.

Before the launch of the automated collection system, the tax collection process had been manual, leading to resource wastefulness.

In response, the Ministry of Finance issued Circular No. 29, effective from July 9, to provide a legal and technical framework for automation.

The automation is meant to modernize tax collection procedures, reduce paperwork, and ensure accurate and comprehensive tax compliance.

A pilot phase involving selected express delivery service providers was scheduled to run from July 9 to July 31.

From August 1 onward, the automatic VAT collection system will be rolled out nationwide to all express delivery companies, regardless of the mode of transport–air, land, or rail.

Data from the General Department of Taxation indicated that in the first half of 2025, organizations and individuals doing business through online platforms contributed some VND98 trillion ($3.8 billion) in taxes, up 58 percent year on year.

Currently, Vietnam has some 725,000 online retailers, according to data submitted to tax authorities by 439 e-commerce platforms.