620,000 business households are exempt from VAT

According to the Ministry of Finance , with a non-taxable revenue of VND200 million/year, the number of households and individuals doing business will decrease by more than 620,000 households, tax revenue will decrease by about VND2,600 billion.

The National Assembly has just passed the amended Law on Value Added Tax, effective from July 1, 2025. Accordingly, only households and individuals doing business with an annual revenue of VND 200 million or more are subject to value added tax (VAT).

According to current regulations: goods and services of households and individuals with annual revenue of over 100 million VND must pay value added tax. Because the revenue is over 100 million VND/year, Mr. Vuong's business household must pay 180,000 VND in tax each month. But according to the new regulations, from July next year, Mr. Vuong and other businesses with annual revenue of under 200 million VND will no longer have to pay tax.

"We thank the Party and the State for going in the right direction and meeting the aspirations of small business people. How can we both have more income to improve our lives and help society more?", said Mr. Nguyen Ba Vuong, Xuan La ward, Tay Ho district, Hanoi .

"So we can have more income to increase our living expenses and help our children with their studies," said Mr. Le Van Nghia, Xuan La ward, Tay Ho district, Hanoi.

Raising the taxable revenue threshold will create conditions for small businesses to have more resources to reinvest and expand production and business. This is also consistent with the reality when prices have changed a lot, so the taxable revenue threshold of 100 million VND/year is too low.

Associate Professor Dr. Le Xuan Truong - Head of the Tax and Customs Department - Academy of Finance said: "This threshold was first decided in 2013. Calculated according to the change in GDP per capita from 2013 to present, it is approximately 2 times. We decided that the threshold of 200 million is appropriate and added a regulation that when the consumer price index changes by more than 20%, the right to adjust is given to the Government".

According to the Ministry of Finance, with a non-taxable revenue of VND200 million/year, the number of tax-paying households and individuals will decrease by more than 620,000 households, tax revenue will decrease by about VND2,600 billion and will not greatly affect the total state budget revenue.

According to VTV

Source: https://doanhnghiepvn.vn/kinh-te/620-000-ho-kinh-doanh-duoc-mien-thue-vat/20241201085522477