On November 14, the National Assembly Standing Committee gave opinions on explaining, accepting and revising the draft revised Law on Value Added Tax (VAT).
Regarding the level of revenue from sales of goods and services not subject to VAT, Chairman of the Finance and Budget Committee Le Quang Manh said that the draft, after being accepted and revised, has stipulated a threshold of 200 million VND/year.
However, the Government proposes to keep this content as the draft law submitted at the 7th Session (May 2024). Accordingly, the authority is assigned to the Government to prescribe the threshold of annual revenue that is not subject to tax to ensure timely management in accordance with reality and changing socio-economic contexts.
The Government believes that raising the threshold for non-taxable revenue goes against the policy of encouraging business households to switch to operating under the enterprise model.
Chairman of the Finance and Budget Committee Le Quang Manh said that at the meeting on November 11, the drafting agency agreed on the threshold of VND200 million/year and removed the regulation on adjustment according to CPI. The majority of the Standing Committee of the Review Committee also agreed with this solution.
However, the drafting agency emphasized that this content needs to be consulted with Government leaders to reach consensus.
Regarding the content of the threshold not subject to VAT, Vice Chairman of the National Assembly Tran Quang Phuong said that it is necessary to ask for the Government's opinion again.
Meanwhile, Chairman of the Economic Committee Vu Hong Thanh said that in the review report, the review and drafting agency agreed to raise it to 200 million VND. If the Government agrees in this direction, then it will be agreed.
In a subsequent explanation report, Deputy Minister of Finance Cao Anh Tuan said that the drafting committee found that the current law stipulates 100 million VND and now adjusting it to 200 million VND/year as in the bill is also appropriate.
However, Mr. Cao Anh Tuan said that the Prime Minister still strongly desires to delegate authority to the Government to regulate the annual revenue threshold that is not subject to tax.
Concluding this content, Vice Chairman of the National Assembly Nguyen Duc Hai said that the issue of regulating the threshold of annual revenue that is not subject to unified tax will be assigned to the Government to regulate.
The Vice Chairman of the National Assembly emphasized the spirit of innovative thinking in law-making. The National Assembly only decides on what is within its authority, and the Government will implement and take responsibility for any content under the Government's authority.
Regarding the content that the Government has different opinions between the times of submitting, receiving and revising the draft law, the Government needs to have a specific report to ensure consistency and narrow down the contents that still have different opinions.
Regarding the contents discussed but there are still different opinions among National Assembly deputies, Vice Chairman of the National Assembly Nguyen Duc Hai said that it is necessary to study and absorb as much as possible opinions, and at the same time explain clearly and objectively to create consensus.
According to the program, the revised VAT Law is expected to be considered and approved by the National Assembly in the second phase of the 8th Session (November 26).
