According to the new regulation approved by the National Assembly on November 26, 2024, the revenue threshold exempt from Value Added Tax (VAT) has been increased from VND 100 million to VND 200 million per year. This means that household businesses and individual businesses with an annual total revenue of VND 200 million or less will not be required to pay VAT.

Applicable Subjects:

• Household Businesses: Families engaged in trading, production, or service activities.
• Individual Businesses: Individuals conducting business independently or with their families without establishing a formal enterprise.

Notes:

• This regulation applies to the total revenue from all business activities during the year.
• If annual revenue exceeds VND 200 million, household and individual businesses will be required to pay VAT under the current regulations.

This new regulation will take effect on July 1, 2025.