The National Assembly "finalized" raising the threshold of revenue not subject to Value Added Tax to over 200 million VND

ANTD.VN - This afternoon, November 26, with the majority of National Assembly deputies voting in favor, the National Assembly passed the Law on Value Added Tax (amended).

The National Assembly voted to pass the Law on Value Added Tax (amended)

Previously, presenting a report explaining, accepting and revising this draft law, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh said that, based on the synthesis of discussion opinions of National Assembly deputies, the National Assembly Standing Committee (NASC) has revised the regulations on non-taxable subjects (Article 5 of the draft Law); on tax rates (Article 9), on value-added tax (VAT) refunds in Article 15...

Specifically, regarding tax rates, the most controversial content in this draft law is the tax on fertilizers. After discussion, many opinions agreed with the proposal to apply a 5% tax rate on fertilizers. Some opinions suggested keeping it as the current regulations; some opinions suggested applying a 0%, 1%, or 2% tax rate.

There are also opinions suggesting a comprehensive assessment of the impact of this regulation on farmers and agricultural and aquatic production. There are concerns about the possibility of businesses taking advantage of the policy, raising prices, affecting farmers...

Mr. Le Quang Manh said that based on the opinions of the National Assembly Deputies, in Report No. 1035/BC-UBTVQH15 dated October 28, the National Assembly Standing Committee explained and reported on the impact of changing fertilizer products from non-taxable to 5% taxable. The Government also issued Official Dispatch No. 692/CP-PL to supplement the explanation and provide specific supporting data.

To properly express the National Assembly's viewpoint in handling the above issue, on November 26, the General Secretary of the National Assembly sent a request for the National Assembly deputies' opinions on two options, one is to apply a 5% tax rate, the other is to keep it as current regulations.

Through the synthesis of opinions, it is shown that 72.67% of the total number of National Assembly deputies agreed with the proposal of the National Assembly Standing Committee and the Government to stipulate a tax rate of 5% for fertilizers, machinery, specialized equipment serving agricultural production, and fishing vessels. This content is shown in Clause 2, Article 9 of the draft Law.

Chairman of the Finance and Budget Committee Le Quang Manh

Regarding non-taxable subjects, there are opinions agreeing with Clause 1, Article 5 of the draft Law and stating that allowing non-payment of output VAT but deduction of input VAT is not in accordance with the principles of VAT. There are opinions suggesting to keep it as in the draft Law submitted by the Government to the National Assembly at the 7th Session.

On November 26, the Secretary General of the National Assembly sent a request for opinions from National Assembly deputies on two options for handling the above issue. Through synthesizing opinions, it was shown that 70.50% of the total number of National Assembly deputies agreed with the proposal of the National Assembly Standing Committee to remove the regulation allowing non-payment of output VAT but deduction of input VAT for unprocessed or pre-processed agricultural products at the commercial stage... Therefore, this content has been shown in Article 5 of the draft Law.

There are suggestions to consider raising the threshold of non-VAT revenue to over 200 million; others suggest raising it to around 300 million or 400 million for the coming years.

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

Regarding VAT refunds, taking into account the opinions of National Assembly deputies, the National Assembly Standing Committee has revised the draft Law in the direction of allowing tax refunds for production establishments and service providers subject to both 5% and 10% tax; at the same time, assigning the Government to stipulate the determination of the amount of input VAT to be refunded according to the allocation rate as prescribed in Clause 3, Article 15 of the draft Law.

In addition, there are opinions suggesting not to exempt taxes on imported goods of small value through e-commerce platforms and to clearly stipulate the content in the General Resolution of the session on terminating Decision No. 78/2010/QD-TTg. Accepting the opinions of National Assembly deputies, the National Assembly Standing Committee included this content in the General Resolution of the Session...

Also in this afternoon's session, the National Assembly voted to pass the Law on Notarization (amended) and the Law on Urban and Rural Planning with a majority of votes in favor.

Source: https://www.anninhthudo.vn/quoc-hoi-chot-nang-muc-nguong-doanh-thu-khong-chiu-thue-gia-tri-gia-tang-len-tren-200-trieu-dong-post596630.antd