Regarding the revision of the draft VAT Law (amended), recently, the National Assembly Finance and Budget Committee proposed raising the threshold for revenue subject to value added tax (VAT) from the current VND 100 million. up 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.
This information has been positively responded to by many experts and business households, as the current tax threshold of 100 million VND/year, effective since 2014, is no longer suitable for the current context. .
Ms. Nguyen Thi Lan, owner of a grocery store in Cau Giay, Hanoi, said that her family's store is only a small-scale grocery store, mainly family members take turns selling goods to earn money. Go out to the fields and earn profit."
Ms. Lan also shared that the store's business in the past 1-2 years has not been as good as before: "Nowadays you can order everything online, everything you have is available online. They also offer free home delivery, so it's very difficult for traditional grocers like us right now."
“Currently, this grocery store's revenue is less than 200 million VND/year but slightly more than 100 million/year, so I still have to pay about 400,000 VND in tax each month. If the proposal to not levy VAT on business households with a turnover of less than 200 million VND/year is approved, my store will be exempt from tax and save a significant amount of costs," Ms. Lan expected.
Meanwhile, many people believe that the tax threshold for revenue from 200 million/year is still too low compared to the current market and commodity price situation.
Mr. Nguyen Thanh Tung, (Tay Ho, Hanoi) gave an example: a bowl of pho/vermicelli was priced at about 25,000-30,000 VND 10 years ago, but now the minimum selling price has increased to about 35,000-50,000 VND. copper. A popular meal is similar, from 20,000 - 25,000 VND 10 years ago, now it has increased to 35,000 - 40,000 VND/serving.
“Therefore, I think it would be more appropriate to raise the taxable revenue threshold to 300-350 million VND/year. If set at 200 million VND/year, the revenue is only about 16 million VND/month. Minus the cost of inputs and goods, the remaining profit is not much, not enough to pay for living expenses."
Evaluating the proposal to raise the VAT taxable revenue threshold to 200 - 300 million VND/year, Mr. Dau Anh Tuan, Deputy General Secretary of the Vietnam Confederation of Commerce and Industry (VCCI) said that raising the taxable revenue threshold The current tax of 200 million or 300 million is reasonable. According to Mr. Dau Anh Tuan, the provisions of this proposal are very appropriate
Previously, commenting on the revised Draft Law on Value Added Tax, some comments proposed raising the taxable revenue threshold of business households and individuals to 150 million VND/year. However, VCCI believes that this level is still relatively low and not reasonable.
