Household businesses with annual revenue of 500 million VND or less are not subject to value-added tax.

The Law amending and supplementing a number of articles of the Value Added Tax Law has just been passed by the National Assembly with 421 votes in favor, accounting for 89.01% of the total number of National Assembly deputies.

Results of the vote to pass the Law amending and supplementing a number of articles of the Value Added Tax Law. Photo: quochoi.vn

The law consists of two articles and will take effect from January 1, 2026. The law amends and supplements Clause 1, Article 5 regarding tax-exempt items as follows: "Products of crops, planted forests, livestock, aquaculture, and fisheries that have not been processed into other products or have only undergone basic processing, produced and sold by organizations and individuals themselves, and at the import stage. Enterprises, cooperatives, and cooperative unions that purchase unprocessed crops, planted forests, livestock, aquaculture, and fisheries products that have only undergone basic processing and sell them to other enterprises, cooperatives, and cooperative unions are not required to declare or pay value-added tax, but are entitled to deduct input value-added tax."

Clause 25 of Article 5 stipulates that the following are exempt from tax: goods and services of households and individuals engaged in production and business with annual revenue of VND 500 million or less; assets sold by organizations and individuals not engaged in business and not subject to value-added tax; national reserve goods sold by the national reserve agency; and fees and charges as prescribed by law on fees and charges.

The law abolishes the regulation requiring businesses eligible for tax refunds to meet the condition that the seller has declared and paid value-added tax as prescribed for invoices issued to the business requesting the refund (Clause c, Point 9, Article 15).

Earlier, on behalf of the Prime Minister, Minister of Finance Nguyen Van Thang presented the report explaining, accepting, and revising the draft Law amending and supplementing a number of articles of the Value Added Tax Law. He stated that, after receiving feedback from delegates and review opinions, the Government has provided additional information on impact assessment, including a report on the percentage of tax refund applications under current regulations. The abolition of 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.

According to VNA

Source: https://baohaiphong.vn/ho-kinh-doanh-co-doanh-thu-nam-tu-500-trieu-dong-tro-xuong-khong-phai-chiu-thue-gia-tri-gia-tang-529282.html