Overseas Parcel to Vietnam: Customs Duty and Tax Limits

Overseas parcel to Vietnam buyers no longer get a duty-free limit on express shipments. Since February 18, 2025, a parcel worth VND 1,000,000 or less is no longer exempt from import tax and value-added tax (VAT). If you order from abroad, expect tax to apply to small parcels too.

What the old VND 1,000,000 rule said

For years, one government decision set the duty-free line for express parcels. It was Decision No. 78/2010/QD-TTg, dated November 30, 2010. It said that imported goods sent by express delivery were exempt from import tax and VAT if their value was VND 1 million or less.

That line was about 39 US dollars. A buyer who ordered a phone case, a book or a small gadget from abroad often paid no tax at all on the parcel. Goods worth more than VND 1 million were already taxed.

Sources: VnEconomy, "Goods valued below $39 to be taxed for express delivery starting Feb 18," January 6, 2025; VietnamNet, "Vietnam ends tax-free status for low-value imports sent via express services," January 5, 2025.

What changed on February 18, 2025

On January 3, 2025, Deputy Prime Minister Ho Duc Phoc signed Prime Ministerial Decision No. 01/2025/QD-TTg. This new decision repeals Decision 78/2010 in full. It took effect on February 18, 2025.

The result is simple. Express parcels worth VND 1 million or less lose their exemption from import tax and VAT. The threshold that buyers used to rely on is gone. It was not replaced with a new, higher one.

The Ministry of Finance gave its reasons. Decision 78 was written when customs checks were done by hand, and the exemption cut paperwork. Online shopping has changed that. Reports say about 4 to 5 million small orders ship each day from countries such as China to Vietnam. The ministry also said the exemption let imported goods undercut local goods, which carry VAT.

Sources: VnEconomy, January 6, 2025; VietNamNet, January 5, 2025; Vietnam Finance Times (Thoi bao Tai chinh Viet Nam), "Vietnam imposes VAT on low-value imported goods," February 19, 2025.

How the tax is worked out

The customs authority said that VAT on these goods is declared and paid under the Law on VAT and related rules. In other words, there is no special small-parcel tax. The normal VAT system now covers them.

The General Department of Customs used a 10 percent VAT rate in its budget estimate. At that rate, it said, tax on goods under VND 1 million could add about VND 2.7 trillion to state revenue. That figure is an estimate for the whole country, not a quote for your parcel. The rate that applies to a given item depends on the item, so check it with the carrier or customs before you rely on 10 percent.

Import duty is a separate tax, and it depends on the goods. Some items carry duty and some do not. The decision itself ended the blanket exemption; it did not set new duty rates.

Source: Vietnam Finance Times (Thoi bao Tai chinh Viet Nam), February 19, 2025, citing the General Department of Customs.

What to expect at the border

Customs said the old decision had no paperwork steps, so repealing it changes no existing process. But collecting VAT on millions of small parcels is new work. Customs systems cannot be upgraded at once, because the upgrade of the VNACCS clearance system depends on investment funds.

In the meantime, the customs authority said that people who declare goods may need to give extra information on paper declarations, along with detailed item lists. This helps officers work out the VAT. Customs officers will also have more manual checks to do.

For a buyer, this can mean a slower parcel, a request for more details about what is inside, or a tax charge that did not exist a few weeks earlier. Ask your carrier what it will need from you.

Source: Vietnam Finance Times (Thoi bao Tai chinh Viet Nam), February 19, 2025, citing the General Department of Customs.

Practical steps for buyers

Treat the total price of an overseas order as the item price plus shipping plus tax. A cheap price tag from abroad is less cheap now. Compare it with a local seller, who already charges VAT.

Before you order, check these points:

• Ask the seller or carrier whether VAT is included in the price or charged later.
• Keep the invoice. A clear invoice with the real item value and description helps customs and may prevent delays.
• Make sure the invoice shows the true value of the goods.
• Expect a possible follow-up from the carrier if customs asks for a detailed item list.
• Check an official source, such as the General Department of Customs, for the latest guidance.

The old VND 1 million line was easy to remember. The new rule is easier still: assume tax applies. The exact amount depends on the goods and the carrier's process, so ask before you pay.

Sources: Vietnam Finance Times (Thoi bao Tai chinh Viet Nam), February 19, 2025; VnEconomy, January 6, 2025.

Sources

• VnEconomy, "Goods valued below $39 to be taxed for express delivery starting Feb 18," January 6, 2025.
• VietNamNet, "Vietnam ends tax-free status for low-value imports sent via express services," January 5, 2025.
• Vietnam Finance Times, "Vietnam imposes VAT on low-value imported goods," February 19, 2025.