ANTD.VN - Assuming a 10% VAT rate is applied to small-value imported goods via express delivery, the budget will have an additional VND 2,700 billion per year, based on import data in 2023.
The Ministry of Finance has just announced a consultation on the draft Decision of the Prime Minister to abolish Decision No. 78/2010/QD-TTg on the value of imported goods sent via express delivery services that are exempt from tax.
The Ministry of Finance said that during the period when Decision No. 78/2010/QD-TTg was issued, the customs declaration system was purely manual, so the tax exemption policy in this Decision contributed to reducing administrative procedures and helping to speed up customs clearance time, reducing the number of goods subject to tax declaration.
However, this policy is no longer suitable because e-commerce in the world as well as in Vietnam has been growing very rapidly over the years. Every day, about 4-5 million small-value orders are shipped from China to Vietnam via e-commerce platforms.
Regarding customs procedures, the automated customs management system at ports, warehouses and yards (VASSCM) continues to be effectively implemented, contributing to simplifying procedures for removing goods from warehouses, yards and ports. To date, over 99% of customs procedures have been carried out electronically through the Automated Customs Clearance System (VNACCS/VCIS).
The development and improvement of the above-mentioned electronic customs declaration system has helped to clear goods quickly and facilitate the management of daily declarations of goods in large quantities without interrupting commercial activities. Customs declarants also do not need to go to customs offices to declare online, the management and collection of taxes on imported goods sent via express delivery services are carried out more centrally and quickly than before.
In addition, some opinions say that the exemption of value added tax (VAT) for imported goods via express delivery services with small value has invisibly created a price difference leading to unfair competition with domestically produced goods of the same type (which are still subject to tax)...
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International e-commerce has grown rapidly in recent times. |
The Ministry of Finance also said that previously, many countries in the world also had policies to exempt import tax and VAT on small-value goods via express delivery, however, up to now, many countries have been and are eliminating this policy.
For example, EU countries have abolished VAT exemptions for shipments of €22 or less. The United Kingdom (England, Scotland and Wales) has also abolished VAT exemptions for imports with a total value of £135 or less from 1 January 2021.
In Singapore, the VAT exemption for low-value goods, especially in the e-commerce sector, will also be abolished from January 1, 2023. From May 1, 2024, Thailand will also collect VAT on all imported goods, regardless of value.
In addition, at the seminars, experts from the Trade Facilitation Project (TFP) also recommended that Vietnam consider removing the regulation of not having to pay VAT on low-value imported goods.
For the above reasons, the Ministry of Finance submitted to the Prime Minister a Decision to abolish Decision No. 78/2010/QD-TTg without waiting for the progress of promulgating the Decree on E-commerce.
Accordingly, from the effective date of the Decision, the VAT exemption policy will not be applied to goods of small value via express delivery to be consistent with the Law on VAT. The import tax exemption policy for goods of small value will still be implemented as currently prescribed in the Law on Export Tax and Import Tax.
The Ministry of Finance said that the abolition of Decision No. 78/2010/QD-TTg will contribute to supplementing state budget resources and promoting the competitiveness of domestic goods with imported goods.
Based on the total import value of goods with a value of less than 1 million VND via express delivery services in 2023 (27.7 trillion VND), assuming that after the abolition of Decision 78, goods with a value of less than 1 million VND via express delivery services are subject to a VAT rate of 10%, the state budget revenue will increase by about 2,700 billion VND.
However, the amount of increased state budget revenue may change depending on whether the applied VAT rate is 5% or 10%.
Source: https://www.anninhthudo.vn/dung-mien-thue-hang-nhap-khau-gia-tri-nho-qua-chuyen-phat-nhanh-ngan-sach-co-the-thu-them-2700-ty-dong-post597225.antd
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