- The revised VAT Law project will be presented to the National Assembly for feedback in the 7th session and is expected to be passed in the 8th session this year.
- The draft law introduces significant new points, aligning with the Tax System Reform Strategy to 2030, addressing longstanding VAT issues.
- A key provision addresses businesses producing goods taxed at 5% but with inputs taxed at 10%, ensuring the state reimburses the difference to avoid capital loss for businesses.
- The draft maintains 26 groups of deductible goods but adds 12 goods and services to the taxable category.
- Including fertilizers in the 5% VAT category will help increase state revenue from imported fertilizers and improve the competitiveness of domestic products.
- Farmers can demand lower prices from domestic fertilizer companies due to the input tax deduction.
- Other new points include raising the annual non-taxable revenue threshold for households and individual businesses from 100 million VND to 150 million VND and excluding tax officials from criminal liability if taxpayers provide inaccurate information unknowingly.
- VAT is the largest revenue-generating tax in Vietnam’s state budget system.
Source: media.chinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
