Accordingly, the draft Law retains the 26 groups of goods and services that are not subject to value-added tax, but narrows the goods and services that are not subject to value-added tax in these 26 groups. .
Remove 12 types of goods and services that are not subject to value added tax, including: fertilizers; specialized machinery and equipment serving agricultural production; offshore fishing vessels; securities depository; market organization services of stock exchanges or securities trading centers; public postal services; public telecommunications services; universal internet service under the Government's program; zoo maintenance services; flower garden and park maintenance services; Street tree maintenance services; public lighting services.
In particular, related to this draft, the National Assembly Finance and Budget Committee recently proposed to raise the VAT taxable revenue threshold from the current 100 million VND to 200 - 300 million VND/year. Accordingly, business households with a revenue of less than 200 million VND/year will not have to pay VAT.
According to calculations by the Ministry of Finance, if a non-taxable revenue level of 200 million VND/year is applied, there will be over 620,000 business households that will not have to pay tax. If calculated at 300 million VND, more than 734,000 business households will be exempt from VAT.
The Ministry of Finance also said that currently the whole country has about 2.1 million business households with tax codes, and business household revenue accounts for less than 2% of total budget revenue.
Assessing this proposal, Associate Professor, Dr. Dinh Trong Thinh - a financial expert - said that raising the tax threshold for business households is very necessary to motivate and encourage business households and micro-enterprises to "grow quickly" and quickly enter the market and establish businesses.
“When raising the taxable revenue threshold, the majority of businesses and individual business households will not be subject to VAT, this is an opportunity for this economic sector to grow. When establishing a company or business, the taxable model and business model will be upgraded, meaning they will contribute more to the State budget," the expert analyzed.
It is known that the revised VAT Law project is expected to be discussed and approved by the National Assembly at its 8th Session next October.
