NA adopts amended Law on VAT

The National Assembly (NA) adopted the revised Law on Value Added Tax (VAT) at its eighth session of the 15th NA in Hanoi on November 26.

The Law will take effect from July next year.

Individuals and organizations will now be subject to VAT if their annual revenue exceeds VND200 million ($7,840), up from the existing VND100 million ($3,920).

The adjustment is being made in line with average growth in GDP and the CPI since 2013.

According to the Ministry of Finance, raising the threshold to VND200 million will reduce the contribution of individual and household businesses to State budget revenue by approximately VND2.63 trillion ($103 million).