Vietnam mulls VAT on imported goods sold on ecommerce sites: report

Traffic in Hanoi, Vietnam / Photo credit: Jon Chica / Shutterstock

Vietnamese lawmakers are proposing a value-added tax (VAT) on goods imported by ecommerce platforms, local outlet Tuoi Tre News reported. If enacted, the proposal would follow similar measures imposed in Thailand and the Philippines.

According to the state-run Vietnam Posts and Telecommunications Group, between four to five million items are shipped from China to Vietnam every day. While each order ranges from US$3.90 to US$11.70 in value, around US$45 million to US$63 million worth of these imported goods circulate on platforms like Shopee, Lazada, and Tiki in a single day.

Under current rules, imports worth less than US$39 are exempted from import tax and VAT.

If the proposal pushes through, Vietnam will be following a growing trend among Southeast Asian governments that have either implemented or proposed similar measures, especially against low-cost China-made goods. Doing so increases the chances of local producers and/or small businesses to compete on ecommerce platforms.

In Thailand, all imported goods shipped through its postal services have been subject to VAT of 7% since May. While the Philippines already imposes VAT and duties on all imports worth more than US$200, its government is also seeking to pass a law that will impose VAT on transactions on “digital services,” which include ecommerce sites.

Last year, Indonesia also started banning imported goods worth less than US$100 on ecommerce platforms, though this policy applies to cross-border transactions involving an overseas-based merchant.

See also: Vietnam’s Sendo bets on groceries to revive ecommerce fortunes