Mr. Dang Son Tung, Deputy Director of the Import-Export Tax Division (Basic Division of Customs).
Sir, the Customs company made up our minds that the improvement of digital trade (e-commerce) will advertise the economic system, but in addition pose many difficulties in tax control. Vietnam wishes to switch laws to stop tax income loss because of cross-border transactions via cheap e-commerce platforms. What’s your opinion in this factor?
Go-border e-commerce is rising strongly, contributing to serving to the Executive understand virtual financial objectives. The improvement of cross-border e-commerce contributes to serving to Vietnamese companies build up their succeed in to world markets, bringing Vietnamese manufacturers to shoppers all over the world; is helping shoppers get entry to many various and wealthy merchandise with aggressive costs from international markets.
Spotting this significance, the Customs sector has applied many sure answers to beef up the import-export industry neighborhood akin to steering, consulting, customs declaration beef up, beef up in resolving procedures, Facilitate and build up interplay and supply data, serving to companies cut back time and prices within the customs clearance procedure.
To simplify tax control, items imported via cross-border e-commerce methods and valued at lower than one million VND are exempt from tax, Vietnam is following world commitments within the 1973 Kyoto Conference as a result of The tax charge is small in comparison to control prices.
Article 1 of Choice No. 78/2010/QD-TTg stipulates: “Imported items despatched by means of specific supply carrier with a price of one million VND or much less are exempt from import tax and worth added tax ( VAT).
The TFA Settlement (Industry Facilitation Settlement) supplies, to the level practicable, for a minimal cargo price or quantity of customs responsibility that is probably not gathered, apart from for sure classes of products. has been prescribed.
In keeping with the Complete and Innovative Settlement for Trans-Pacific Partnership (CPTPP), in commonplace scenarios, customs tasks aren’t charged for specific supply items with a price equivalent to or not up to the fastened quantity allowed. prescribed through the rules of every celebration.
These days, tax exemption for Vietnam’s low-value imported items is in step with world commitments. Vietnam exempts imported items despatched by means of postal or specific supply services and products with a price of one million VND or much less or with a payable quantity of 100,000 VND or much less. For traditional imported items, tax is exempted if the entire customs price is 500,000 VND or much less or the entire tax quantity payable is 50,000 VND or much less.
The quantity of imported items with small price is slightly massive, such a lot of nations have re-taxed them to extend finances income and make sure equity with regionally produced items. Has Vietnam thought to be implementing taxes on imported items, sir?
Many nations have abolished the apply of tax exemption for low-value imported items, akin to: The Eu Union (EU) abolished tax exemption for imported items with a price of twenty-two euros or much less from September 1. July 1, 2021; Singapore abolishes worth tax exemption laws for low-value items from January 1, 2023; The United Kingdom additionally abolished tax exemption laws for low-value items in 2022…
Choice 78/2010/QD-TTg stipulates the exemption of import tax, VAT and different taxes (if any) for imported items despatched by means of specific supply carrier with a price of one million VND or much less. promulgated at the foundation of world treaties, particularly the Kyoto Conference in addition to world practices.
Not too long ago, many nations have deserted this tax exemption coverage, Vietnam wishes to check. This can be a delicate factor as it should offer protection to the rustic’s proper to gather taxes, be certain that equity with regionally produced items, and be in step with world developments and practices.
To compare the craze, the Ministry of Finance is reviewing and can put up to the High Minister to repeal Choice No. 78/2010/QD-TTg. So, will this Choice be annulled and the tax imposed on imported items of small price be abolished, sir?
Tax assortment or exemption will have to be performed in line with world commitments and home rules at the foundation of assessing the benefits, disadvantages, and affects on related events. The Basic Division of Customs is learning the truth of many nations all over the world and the socio-economic scenario within the nation to believe reporting to competent government.
Earlier than filing to the High Minister to suggest repealing or proceeding to enforce Choice 78/2010/QD-TTg, the Ministry of Finance requested for evaluations from competent businesses on enforcing world treaties such because the Ministry of Justice. , Ministry of Overseas Affairs to believe Vietnam’s duties within the strategy of enforcing the Kyoto Conference on non-exemption of import tasks and different taxes for items with a minimal price.
Sir, but even so the proposal to believe abolishing or proceeding to enforce Choice 78, does the Basic Division of Customs suggest to exempt import tax for items price lower than 2 million VND transacted by means of e-commerce?
The Ministry of Finance (Basic Division of Customs) was once assigned through the Executive to increase a Decree regulating customs control for exported and imported items traded by means of e-commerce. Within the Draft Decree, the Ministry of Finance has proposed to exempt import and export tax for items with a most price of as much as 2 million VND.
Draft Decree regulating customs control for exported and imported items transacted by means of e-commerce, offering for import tax exemption for imported items with a customs price in step with order of two million VND or extra. or have a complete import tax quantity payable of lower than 200,000 VND. Each and every group and particular person can simplest experience tax exemption for uploading items as much as a most of 96,000,000 VND/yr.
The Basic Division of Customs is researching, reviewing, inspecting and comparing laws on tax exemption for exported and imported items transacted by means of e-commerce, affecting State finances revenues and State finances prices. spent on tax management if now not tax exempt; The affect of tax exemption on home manufacturing and industry actions in addition to client advantages.
Now we have additionally requested for evaluations from ministries, localities, and the industry neighborhood in this matter and maximum of them beef up the proposal of the Ministry of Finance. Within the fourth quarter, the Ministry of Finance will put up the general draft to the Executive.
To make certain that laws conform to Vietnamese legislation in addition to compatibility with world treaties, agreements…, the drafting company is punctiliously bearing in mind laws on tax coverage.
Particularly, when a box develops strongly, ahead of promulgating laws, there must be a procedure of study and number of enjoy from nations within the area and the arena to make sure the purpose of each facilitating and now not harming the field. lack of tax income for the State and steering to customs declarants and companies to conform and satisfy tax responsibilities in line with the legislation.
Thanks very a lot!