- Vietnam mulls introducing VAT on imported e-commerce goods.
- The move aims to address the influx of Chinese products flooding online marketplaces.
- Southeast Asian nations are increasingly adopting similar digital taxation measures.
Shopping spree tax squeeze?
Vietnamese lawmakers are considering a value-added tax (VAT) on goods imported through e-commerce platforms. This potential move aligns Vietnam’s policy those of Thailand and the Philippines.
The proposal aims to address the massive influx of imported items, primarily from China, flooding Vietnamese online marketplaces like Shopee, Lazada, and Tiki.
Current estimates suggest a staggering four to five million items arrive daily from China to Vietnam.
Despite individual order values ranging from $3.90 to $11.70, the cumulative daily value of these imports on e-commerce platforms reaches an impressive $45 million to $63 million.
Under existing regulations, imports valued below $39 enjoy exemption from both import tax and VAT.
E-commerce taxation tango
Should Vietnam proceed, it will join a growing roster of Southeast Asian nations implementing or proposing similar measures, especially targeting low-cost Chinese imports.
These policies aim to level the playing field for local producers and small businesses on e-commerce platforms.
Thailand recently introduced a 7% VAT on all imported goods via postal services, the Philippines is pursuing legislation to tax “digital services” transactions, Indonesia has banned imported goods under $100 on e-commerce platforms for cross-border transactions involving overseas merchants.
To read the original article: https://www.techinasia.com/vietnam-mulls-vat-imported-goods-sold-ecommerce-sites
