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

Goods and services of households and individuals with annual revenue of less than 200 million VND will not be subject to value added tax (VAT).

On the afternoon of November 26, the National Assembly passed the Law on Value Added Tax (amended). This Law will take effect from July 1, 2025.

According to the draft Law, goods and services of business households and individuals with annual revenue of less than 200 million VND will not be subject to value added tax.

Before the draft Law was passed, presenting the report on explanation, acceptance and revision, Chairman of the Finance and Budget Committee Le Quang Manh said that there were opinions suggesting to consider and raise the threshold of revenue not subject to value added tax to over 200 million. In addition, there were opinions suggesting a level of over or under 300 million VND or 400 million VND for the coming years.

The National Assembly Standing Committee said that the current law stipulates that the revenue level not subject to value added tax is 100 million VND/year.

According to the Ministry of Finance 's calculations, if the non-taxable revenue level is set at 200 million VND/year, the state budget revenue will decrease by about 2,630 billion VND. If the non-taxable revenue level is 300 million VND/year, the state budget revenue will decrease by about 6,383 billion VND.

Therefore, to ensure a reasonable increase in the non-taxable revenue threshold, relatively consistent with the GDP growth rate and average CPI from 2013 to present, the draft Law stipulates a revenue threshold of VND 200 million/year.

According to calculations by the Ministry of Finance, if the tax-free revenue level is set at 200 million VND/year, there will be over 620,000 business households that will not have to pay tax.

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