Individual business households with annual revenue of 200 million VND or less will are not subject to value added tax (VAT). This is a prominent content in the amended VAT Law passed by the National Assembly on the afternoon of November 26.

Compared to the old regulations, this threshold has doubled, from 100 million VND/year to 200 million VND/year. According to the report of the Chairman of the Finance and Budget Committee, Mr. Le Quang Manh, some opinions suggest raising this threshold to 300-400 million VND to be more suitable in the coming years. However, the National Assembly decides the level 200 million VND is reasonable, based on the average growth rate of GDP and CPI from 2013 to present.

Financial impact:

• • With 200 million VND/year, the number of business households paying taxes will decrease by 620,653 households, the state budget will reduce revenue by about 2,630 billion VND.
  • If raised to 300 million VND/year, the number of business households paying taxes will decrease by 734,735 households, reducing budget revenue by about 6,383 billion VND.

Other changes in the law:

• • From July 1, 2025, some products such as fertilizers, agricultural machinery and fishing vessels will change from non-taxable to a 5% tax rate. This regulation received the consensus of nearly 73% of National Assembly deputies.

These changes aim to reduce the burden on small business households, while adjusting revenue levels to suit the actual economic situation.