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Tuesday, June 25, 2024

Latest draft of revised VAT law makes no tax threshold change

The Saigon Times

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HCMC – In the latest draft of the revised value-added tax (VAT) law, the Ministry of Finance has opted to keep the tax threshold unchanged at VND150 million even though businesses, individuals and households have proposed a higher level.

Under this draft, the ministry has proposed the threshold for annual revenue subject to VAT for individuals and business households be set at VND150 million, up from the current VND100 million.

Nguyen Van Duoc, head of the Consultancy Board of the Vietnam Tax Consultants’ Association, noted that this increase would benefit individuals and households by reducing the number of VAT payers.

Some organizations have suggested a higher VAT threshold in alignment with the Law on Personal Income Tax and other relevant regulations. However, the ministry rejected the proposal, citing considerations such as inflation and the current economic circumstances.

The ministry expressed concerns that a higher VAT threshold could adversely affect tax revenue collection at the local level.

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