Automated VAT Collection on Low-Value Imported Goods Starting August 1
According to recent reports from Vietnamese media, Vietnam Customs will officially implement Circular No. 29/2025/TT-BTC starting August 1, 2025. The regulation introduces an automated Value-Added Tax (VAT) collection process for imported express goods valued under VND 1 million (approximately RMB 300).
Previously, under Decision No. 01/2025/QD-TTg, the Vietnamese government exempted low-value imported goods from import duties, but they were still subject to a 10% VAT. Due to incomplete system updates, tax collection mainly relied on manual declarations, resulting in low efficiency. Following a pilot phase from July 9 to 31, the new system will officially apply to all express delivery modes, including air, road, and rail. The goal is to improve tax collection efficiency, reduce administrative procedures, and strengthen tax supervision.
This policy marks a tightening of Vietnam’s tax regulation on cross-border e-commerce, aiming to ensure fair tax competition between imported and domestic goods. It will also increase operational costs and compliance pressure for cross-border sellers. Sellers are advised to adjust pricing strategies, optimize their supply chains, and closely monitor any changes in tax withholding policies on e-commerce platforms.