Ministry of Finance rejects proposal to raise VAT threshold

March 02, 2024

HÀ NỘI — The Ministry of Finance (MoF) has rejected a proposal to increase revenue thresholds for value-adde (VAT) tax for individuals and household business to VNĐ300 million (US$12,500) a year, citing concerns that a higher tax threshold would deter household business from converting to enterprises. During recent discussions on amending the Law on Value Added Tax, representatives from Quảng Ngãi Province have suggested to raise the threshold to VNĐ300 million, while other agencies proposed lower levels, with the Ministry of Transport proposing VNĐ250 million. The Vietnam Tax Consultants' Association (VTCA) have suggested a threshold of between VNĐ180 million and VNĐ240 million. There are 5.5 million household businesses in the country that account for 30 per cent of its GDP, according to the General Statistics Office. Việt Nam has extended the 2-per-cent VAT reduction policy till the end of June this year given prolonged economic difficulty.

The source of this news is from Vietnam News