HCMC – The National Assembly has approved the amended Value-Added Tax (VAT) Law, raising the taxable revenue threshold from VND100 million to VND200 million per year.
Passed on November 26 with 407 out of 451 deputies voting in favor, the law will take effect in July 2025.The revision aims to modernize tax policy while balancing state revenue and support for small businesses, according to Le Quang Manh, head of the Finance and Budget Committee.
The Finance Ministry estimates that the new threshold will reduce annual revenue by VND2.63 trillion. Raising it further to VND300 million, as some proposed, would result in an additional revenue loss of VND3.75 trillion, totaling VND6.38 trillion.
The law also retains a 5% VAT rate on fertilizers despite calls for a 0% rate to benefit producers and importers. Lawmakers argued that applying a zero rate would place a further strain on the state budget due to required refunds for VAT inputs.
Tax compliance in e-commerce was another key focus of the law.
Concerns were raised about low-value goods sold through foreign platforms evading tax obligations. To address this, the Standing Committee of the National Assembly passed a resolution ending Decision 78/2010/QD-TTg.
The new regulations introduce stricter VAT and tax management rules, enhancing oversight of e-commerce platforms, particularly for low-value imports.
