From August 1, imported goods via express delivery with a value of less than 1 million VND are subject to value added tax.

The Customs Department announced the implementation of Circular 29/2025/TT-BTC, new regulations on automatic value-added tax (VAT) collection for low-value goods imported via express delivery services.

Previously, imported goods via express delivery with a value of less than 1 million VND were exempted from both import tax and VAT. However, this VAT exemption policy was abolished from February 18, 2025, with goods under 1 million VND still exempted from import tax but required to pay VAT.

During the policy implementation, a problem arose that the customs system had not been updated to collect VAT on these low-value shipments. Therefore, customs authorities and businesses declared and collected taxes manually, which was time-consuming, labor-intensive and prone to errors.

The Ministry of Finance issued Circular 29/2025/TT-BTC to create a legal and technical basis for automatic VAT collection on the customs system, with the goal of modernizing, reducing administrative procedures and ensuring correct and sufficient tax collection for the State.

According to the plan, the pilot phase is from July 9 to 31, applied to a number of businesses.

Then, from August 1, the Customs Department implemented the above policy with all express delivery businesses through all forms of air, road, and rail.

Source: https://hanoimoi.vn/from-1-8-imported-goods-through-express-delivery-value-under-1-million-dong-increases-in-tax-708975.html