Vietnam Introduces VAT on Imports Under $40 in 2025

If you regularly ship to Vietnam, here’s something important you need to know. Starting 18 February 2025, Vietnam will impose a 10% Value Added Tax (VAT) on all imported goods valued at or below VND 1,000,000 (around USD 40). This means that even lower-value shipments that previously avoided taxation will now be subject to VAT.

Why the Change?

Vietnam's government is introducing this regulation to create fair competition between local and international sellers. Currently, domestic businesses must pay VAT on all transactions, while foreign sellers shipping goods below VND 1,000,000 have been exempt. The new rule levels the playing field, particularly with the rapid growth of e-commerce.

What Does This Mean for You?

For Businesses Shipping to Vietnam:

• VAT will now apply to all shipments, regardless of their value.
• Inform your customers in Vietnam about these changes to avoid surprises.
• Waybills and invoices must include accurate details like the receiver’s name, email, and mobile number to prevent delays.

For Receivers in Vietnam:

• The 10% VAT applies to both business (B2B) and personal (B2C & C2C) shipments starting 18 February 2025.
• If VAT and import duties aren’t prepaid by the sender, the receiver must pay before delivery through DHL, our partner carrier:
  
  • DHL account holders will be invoiced directly.
  • Non-account holders will receive a payment link for online transactions via credit card or QR payment, or they can pay in cash upon delivery.

How to Avoid Shipping Delays

• Double-check that your paperwork is complete and accurate before sending shipments.
• Communicate with your Vietnamese customers about potential VAT costs upfront.

Please visit the official government details on these changes.

At Couriers & Freight, we’re committed to making international shipping as smooth as possible. If you need help navigating these changes, get in touch with our team today. We’re here to help!

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