Households and individuals engaged in production and business activities with annual revenue of 500 million VND or more are exempt from VAT.

Hộ, cá nhân sản xuất, kinh doanh có mức doanh thu năm từ 500 triệu đồng/năm không phải chịu thuế VAT- Ảnh 1. — The session passed the Law amending and supplementing a number of articles of the Value Added Tax Law.

The law consists of two articles and will come into effect on January 1, 2026.

Specifically, the Law restores the provisions of the 2016 Value Added Tax Law, according to which cooperative enterprises and cooperative unions, when selling unprocessed (or only minimally processed) agricultural, forestry, livestock, aquaculture, or fishery products to other cooperative enterprises or cooperative unions, are not required to calculate VAT but are still entitled to deduct input VAT.

Also in the agricultural sector, the Law removes the provision that agricultural products, planted forests, livestock, aquaculture, and wild-caught seafood that have not been processed into other products or have only undergone basic processing and are used as animal feed or medicinal materials shall be subject to VAT at the rate prescribed for agricultural products, planted forests, livestock, and seafood as stipulated in Clause 5, Article 9 of the VAT Law No. 48/2024/QH15.

Another important change in this revision is the removal of the regulation that stipulated that buyers could only receive a tax refund if the seller had declared and paid the tax.

In addition, the Law adds goods and services produced and traded by households and individuals with annual revenue of 500 million VND or less as exempt from VAT, in order to align with the provisions of the amended Personal Income Tax Law.

Before proceeding to the vote, the National Assembly heard Minister of Finance Nguyen Van Thang present the report explaining, accepting, and revising the draft Law amending and supplementing a number of articles of the Value Added Tax Law.

Regarding the amendment of regulations on agricultural products, the Government has made technical adjustments to the drafting and wording of the 2016 Value Added Tax Law, which has been implemented consistently over many years.

Regarding the amendment of regulations on waste, by-products, and scrap materials, this is a technical revision in the drafting process to ensure policy transparency, encourage the recovery and reuse of by-products and waste from agricultural products, and create momentum to promote the development of a circular economy in the agricultural sector, thereby contributing to reducing negative impacts on the environment.

Regarding animal feed, the amendment to regulations aims to ensure consistency among goods with similar uses, such as animal feed and medicinal herbs; it also ensures fairness between domestically produced and imported animal feed. This will create an incentive for businesses to reduce selling prices to support livestock farmers.

Regarding tax refund conditions, the Government has added content on impact assessment, including reports and the percentage of tax refund applications as stipulated in current regulations. Abolishing this regulation contributes to shortening the tax refund time for businesses, ensuring the proper responsibilities and separate rights of both the buyer and the seller. Tax refunds will be implemented uniformly according to the provisions of the Tax Administration Law recently passed by the National Assembly, ensuring efficiency and strictness.

This amendment to the Law is considered urgent and necessary to promptly address the consequences of natural disasters, storms, and floods, to quickly restore production and business, especially in the agricultural sector, and to remove the "bottleneck" in value-added tax refunds.

Thu Giang

Source: https://baochinhphu.vn/ho-ca-nhan-san-xuat-kinh-doanh-co-muc-doanh-thu-nam-tu-500-trieu-dong-nam-khong-phai-chiu-thue-vat-102251211133657878.htm