Vietnam to impose VAT on express-imported goods under $40

Deputy prime minister Ho Duc Phoc recently signed a decision, officially repealing a November 2010 decree.

As low-value imported goods were exempt from VAT and similar domestic products were levied this tax, it created a significant price difference, posing challenges for domestic businesses, especially small and medium enterprises (SMEs), domestic news outlets reported.

The decision will also encourage consumers to support goods produced in the country.

In 2010, when the earlier decision was taken, customs declaration systems operated manually, and the exemption helped streamline administrative procedures, reduce customs processing time and minimise paperwork for low-value imports.

ALCHEMPro News Desk (DS)