How Will the Application of VAT to All Businesses Affect Logistics Services?

The logistics market is becoming increasingly volatile. Order volumes from online marketplaces and e-commerce platforms have declined significantly. Due to the direct application of VAT on sales revenue, many small and medium-sized businesses are showing signs of exiting the market, while most large retailers are shifting their sales activities to e-commerce platforms.

Since many shop owners are still unfamiliar with VAT regulations, selling through e-commerce platforms results in VAT being deducted directly from each order. This is due to new policies requiring platforms such as Shopee, TikTok Shop, and Lazada to declare and pay taxes on behalf of sellers.

Because taxes are calculated as a percentage of revenue, businesses with high sales volumes but low profit margins are particularly affected. As a result, shop owners must optimize operational and inventory costs to maintain profitability, which may lead to higher product prices.

Customers are also becoming less inclined to place orders through channels such as Facebook, Zalo, or individual websites. Instead, they increasingly prefer purchasing directly from nearby stores or through online marketplaces, where they can benefit from discounts and free shipping.

In the current highly competitive market, only large retailers may be able to sustain their operations by importing goods in large quantities and leveraging multiple sales channels, including e-commerce platforms. Small and medium-sized businesses often struggle to compete on price and may be forced to exit the market. Consequently, this trend could lead to a decline in delivery volumes for logistics companies between late 2025 and mid-2026.

Author: Phạm Thị Việt Trinh