Lawmakers want all international e-commerce orders taxed on entry

Many countries impose taxes on low-value goods imported through e-commerce platforms to ensure a level playing field for domestic businesses, Le Quang Manh, head of the National Assembly’s Finance and Budget Committee, said at a meeting Monday.

"The government should expand its tax net to include more sources of income".

Goods worth VND1 million delivered through shipping services are not taxed at all.

But Manh wanted this 2010 government decision changed, saying up to five million such orders are shipped through the border each day, most of them worth VND100,000-300,000, according to 2023 data from shipping service company VNPT.

The number of such goods was low in the past but has now surged thanks to the boom in e-commerce, he said.

The value of goods shipped by e-commerce platforms such as Shopee, Lazada and TikTok is $45-63 million a day and $1.3-1.9 billion a month, he added.

Nguyen Manh Hung, a member of the National Assembly’s Economic Committee, also said a "huge amount" of goods worth less than VND1 million are enjoying zero taxes.

His two teenage children place seven to 10 such orders a day, he said.

"For the whole country the volume is extremely large".

He called for slapping VAT on goods coming from China and Thailand to also add a "sustainable source of income" to the government’s coffers.

Minister of Finance Ho Duc Phoc said some countries have scrapped their tax incentives on low-value goods.

The E.U., for example, has rescinded a VAT waiver on goods worth less than EUR22 ($23.6), he said.

Thailand imposes a VAT of 7% on all imports regardless of value, he added.