The newly passed law stipulates that goods and services of households and individuals with annual revenue of VND200 million or less will not be subject to VAT.
Delegates press the button to pass the law - Photo: GIA HAN
Reason for raising the threshold to 200 million VND/year
Before the National Assembly passed, on behalf of the National Assembly Standing Committee, presenting an explanatory report, Chairman of the Finance and Budget Committee Le Quang Manh said that there were opinions suggesting to consider raising the threshold of non-VAT revenue to over 200 million VND. In addition, there were opinions suggesting a threshold of 300 million VND or 400 million VND for the coming years. The National Assembly Standing Committee informed that the current law stipulates the non-VAT revenue threshold of 100 million VND/year. According to calculations by the Ministry of Finance, if the non-tax revenue threshold is set at 200 million VND/year, the number of taxable households and individuals will decrease by 620,653 households, and the state budget revenue will decrease by about 2,630 billion VND. To ensure a reasonable increase in the threshold for non-taxable revenue, relatively consistent with the average GDP and CPI growth rate from 2013 to present, the law stipulates a threshold of VND200 million/year. The Government proposes to be assigned the authority to adjust this revenue level in accordance with the socio-economic development situation of each period, to ensure flexibility in management, consistent with reality. This content has also been asked for the opinions of National Assembly deputies by ballot by the Standing Committee of the National Assembly. Accordingly, 204 deputies (accounting for 63.35% of the total number of National Assembly deputies) agreed to the regulation that goods and services of business households and individuals with an annual revenue of VND200 million or less are not subject to tax.Early end of tax exemption for small-value imported goods via trading floors
According to Mr. Manh, 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 joint resolution of the session on terminating Decision 78/2010 of the Government. Regarding this content, the Standing Committee of the National Assembly stated that recently, a number of e-commerce platforms have appeared selling goods to Vietnam at very small, very low, very cheap and very competitive values. The Standing Committee of the National Assembly highly appreciated the Government's timely proposal to supplement regulations on tax collection for e-commerce businesses in both the draft Law on VAT and the draft Law on Tax Administration to enhance the effectiveness of tax collection management. However, if Decision 78/2010 has not yet expired, the amended contents of the Law on VAT and the Law on Tax Administration will not be able to take effect to ensure tax collection for e-commerce. Therefore, accepting the opinions of delegates, the National Assembly Standing Committee would like to include this content in the general resolution of the session. Specifically, request the Government to urgently issue a decree on customs management of exported and imported goods traded via e-commerce channels, ensuring that import tax exemptions are not allowed for small-value goods. Immediately terminate the validity of Decision 78, creating a basis for tax authorities to have a legal basis and sanctions to manage collection of foreign e-commerce platforms selling goods to Vietnam.Tuoitre.vn
Source: https://tuoitre.vn/quoc-hoi-chot-nguong-doanh-thu-khong-chiu-thue-vat-la-200-trieu-dong-nam-20241126170401717.htm
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