National assembly deputies are concerned that failing to tax small-value imported goods sold through platforms like Shopee, Lazada, Tiki, and TikTok could lead to substantial revenue losses for the state budget.
National assembly deputies are concerned that failing to tax small-value imported goods sold through platforms like Shopee, Lazada, Tiki, and TikTok could lead to substantial revenue losses for the state budget and allow an influx of cheap goods into Vietnam.
On the afternoon of June 24, during a discussion on the draft amendment to the Value Added Tax (VAT) Law, many NA deputy expressed their worries about the potential significant revenue loss if the current exemption on import tax for goods valued at 1 million VND or less remains.
Monthly transactions via Shopee, Lazada, Tiki, TikTok worth up to $1.9 billion
National Assembly deputy Hoang Thi Thanh Thuy (Tay Ninh province) raised the issue of VAT exemption for imported goods sent via express delivery services valued at 1 million VND or less, currently regulated by Prime Ministerial Decision No. 78/2010.
"I propose that this exemption be reconsidered," she said, citing several reasons.
With the explosion of e-commerce, the volume of cross-border transactions of small-value goods has surged. According to the Post and Telecommunications Corporation, as of March 2023, an average of 4-5 million orders per day were transported from China to Vietnam, each valued between 100,000 and 300,000 VND, amounting to about 45-63 million USD daily, and approximately 1.3 to 1.9 billion USD monthly through platforms like Shopee, Lazada, Tiki, and TikTok, she said.
The deputy argued that maintaining the current regulation would result in significant revenue loss for the state budget and facilitate the influx of cheap goods into the Vietnamese market.
Furthermore, the regulation does not ensure fairness between domestic and imported goods. Domestically produced goods are subject to VAT, while imported goods are not taxed under this exemption.
Ms. Thuy also pointed out that this regulation is inconsistent with global trends. Many countries have abolished VAT exemptions for small-value imported goods to protect revenue and ensure a level playing field for domestic and imported goods.
Deputy Pham Van Hoa (Dong Thap province) also proposed reconsidering the exemption for some cases of imported goods.
Mr. Hoa cited a report indicating that 4-5 million orders cross the border daily, exempt from tax due to their small value. Taxing these packages would not yield significant revenue but would require substantial management resources and cause delays.
He noted that many countries have abolished such exemptions and suggested that the drafting committee consider adjustments to reflect reality and be acceptable to taxpayers.
Minister of Finance Ho Duc Phoc. Photo: QH
Not small at all
According to deputy Pham Duc An (Hanoi), the data indicates that this issue is "not small at all."
"On average, there are about 4 to 5 million orders a day, each valued between 100,000 and 300,000 VND. This amounts to 45-63 million USD daily, and 1.3-1.9 billion USD monthly. This is not a small number," Mr. An emphasized.
Therefore, the Hanoi deputy suggested that exemptions should only apply to small-value goods carried by individuals when entering the country through border gates.
In his explanation, Minister of Finance Ho Duc Phoc stated that the current exemption is based on implementing international agreements as stipulated by Decision No. 78/2010.
He emphasized that the draft law will consider and develop appropriate VAT rates for small-value goods to address delegates' concerns.
Vietnamnet.vn
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