Official: Individual households with revenue under 200 million VND are exempt from VAT

Goods and services provided by household and individual businesses with annual revenue under 200 million VND will not be subject to value-added tax (VAT).

On the afternoon of November 26th, the National Assembly passed the amended Value Added Tax Law. This law will come into effect on July 1st, 2025.

According to the draft law, goods and services provided by household and individual businesses with annual revenue under 200 million VND will not be subject to value-added tax.

Before the draft law was passed, during the presentation of the explanatory report on amendments and revisions, the Chairman of the Finance and Budget Committee, Le Quang Manh, stated that there were suggestions to consider raising the threshold for revenue exempt from value-added tax to above 200 million VND. In addition, there were suggestions for a level of around 300 million VND or 400 million VND for the coming years.

The Standing Committee of the National Assembly stated that the current law stipulates a revenue threshold of 100 million VND per year that is exempt from value-added tax.

According to calculations by the Ministry of Finance , if the tax-free revenue threshold is set at 200 million VND/year, the state budget revenue would decrease by approximately 2,630 billion VND. If the tax-free revenue threshold is set at 300 million VND/year, the budget revenue would decrease by approximately 6,383 billion VND.

Therefore, to ensure a reasonable increase in the tax-exempt revenue threshold, relatively consistent with the GDP growth rate and the average Consumer Price Index (CPI) from 2013 to the present, the draft Law stipulates a revenue threshold of 200 million VND/year.

According to calculations by the Ministry of Finance, if a tax-free revenue threshold of 200 million VND per year is established, approximately over 620,000 business households will not have to pay taxes.

According to Thuy An/VTV

Source: https://doanhnghiepvn.vn/kinh-te/chinh-thuc-ho-ca-nhan-co-doanh-thu-duoi-200-trieu-dong-duoc-mien-thue-vat/20241126082201380