On the afternoon of June 24, continuing the 7th Session Program of the 15th National Assembly, at the National Assembly Building, under the chairmanship of National Assembly Chairman Tran Thanh Man, the National Assembly discussed in the hall the draft Law on Value Added Tax (VAT) (amended).
Participating in giving comments, delegate Cam Thi Man, full-time National Assembly member of the National Assembly Delegation of Thanh Hoa province, highly appreciated the preparation of the draft Law on Value Added Tax (amended). Accordingly, the submission has fully stated the necessary content, the attached appendices have explained in detail and very convincingly the issues that need to be amended in VAT. Looking at the reality of some basic issues that lead to the need to amend the Law, it also shows that: The current Law on Value Added Tax was issued in 2008, that is, 16 years ago and has been amended and supplemented 3 times, the most recent being in 2016. Up to now, stemming from the requirements of international integration; The internal conditions of the domestic socio-economic situation have also changed and fluctuated... many provisions of the current Law on Value Added Tax are no longer suitable, even causing difficulties for the overall development of the economy as they are the cause of increased production costs and increased selling prices of goods and services. Therefore, delegate Cam Thi Man strongly agrees with the National Assembly's consideration to amend the Law on Value Added Tax.
To continue perfecting the draft Law, delegate Cam Thi Man gave further comments on a number of specific issues such as: Regarding taxpayers: Article 4 of the draft Law has 4 clauses regulating different VAT payers. Researching the specific clauses in the law shows that the name of Article 4 "Taxpayer" is inconsistent and does not accurately reflect the content of the law. Specifically, according to the name of the law, the tax payer is "person", but in the clauses in the law, taxpayers also include "organizations", "households", individuals in production and business... Meanwhile, the draft law does not explain or regulate "Taxpayer" as written in the current Law, causing inconsistency between the content and name of the law.
Therefore, delegate Cam Thi Man said that the term “Taxpayer” needs to be amended accordingly. Accordingly, it is proposed to change the name of Article 4 from “Taxpayer” to “Taxpayer” to ensure that it covers both individuals and organizations, and reflects comprehensively and consistently the content and name of the law.
Also in Article 4, the draft Law adds the subject of "households" for production and business. However, according to the provisions of the Civil Code and a number of laws that use similar terms such as: Forestry Law, Law on Non-agricultural Land Use Tax, Law on Tax Administration..., most recently the Land Law all use the phrase "household". At the same time, when looking up the concepts of "production households", "business households", delegate Cam Thi Man saw that at Point a, Point b, Clause 1, Article 2 of the Law on Tax Administration, the terms "household", "business households" are mentioned but not the term "production households".
In addition, Clause 1, Article 3 of Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance guiding value added tax, personal income tax and tax management for business households and individual businesses stipulates: "Business household" is a production and business establishment registered by an individual or household members and is responsible with all of their assets for the business activities of the household... Thus, simply stating a business household includes production. From the above issues, delegate Cam Thi Man proposed to use the terms "household" and "business household" consistently to ensure consistency and uniformity in the legal system.
Regarding non-taxable subjects (Article 5): The draft Law stipulates 26 groups of non-taxable subjects, and at the same time provides detailed, complete, and strict regulations for most groups of subjects exempted from VAT. However, through research, delegate Cam Thi Man suggested that the drafting agency continue to review to standardize and unify the VAT Law with related laws, accordingly, it is necessary to review and arrange the VAT-exempt fields and industries in a reasonable manner, with priority order, easy to apply in practice.
Regarding the provisions of this Article, delegate Cam Thi Man would like to focus on Clause 10, which stipulates that “Services for caring for the elderly and disabled, including medical care, nutrition, and organizing cultural, sports, entertainment, physical therapy, and rehabilitation activities for the elderly and disabled” are not subject to value added tax. The delegate personally agrees with the subject, however, technically, the provision is listed but unscientific, unreasonable, and has overlaps. In particular, the phrase “services for caring for the elderly and disabled” is repeated twice in the same clause, which is unnecessary; the content of the subject has general provisions for both services for people and pets in the same clause, which is unreasonable.
From the above analysis, the delegate suggested reviewing and rewriting to be concise and general, not duplicating the ideas that need to be written in the same clause of the law. At the same time, separate clause 10 into 2 different clauses to regulate each type of service object for humans and services for pets separately.
Regarding ensuring the consistency and synchronization of the draft Law: Through studying the submission and detailed explanation (attached to the submission), delegate Cam Thi Man found that the submitting agency had reviewed the provisions of the law in quite detail to show consistency in the draft Law on VAT. This includes the Law on Management and Use of Weapons, Explosives and Supporting Tools. However, the reviewed content has not been compared with the draft Law on Management and Use of Weapons, Explosives and Supporting Tools (amended) which is also being considered by the National Assembly at this session.
In addition, when studying the draft Law on Defense Industry, Security and Industrial Mobilization, there was also a mention of “VAT exemption for foreign organizations implementing technology transfer programs and projects in the field of defense and security industry”. However, the draft Law on Value Added Tax does not stipulate that this is an exempted subject. Therefore, it is recommended that the drafting agency study and supplement; at the same time, review with other draft Laws being submitted to the National Assembly for consideration and approval to ensure comprehensiveness and consistency in the legal system.
Quoc Huong
Source: https://baothanhhoa.vn/dbqh-cam-thi-man-tham-gia-gop-y-ve-du-an-luat-thue-gia-tri-gia-tang-sua-doi-217633.htm
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