TAX DECLARATION AND PAYMENT FOR BUSINESS HOUSEHOLDS AND INDIVIDUALS (BH, BI) WHO DIRECTLY DECLARE TAX

I. GUIDELINES FOR PAYING LICENSE FEES

Business households and individuals (BH) apply the regulations on the obligation to pay license fees (LF) as prescribed in Decree 139/2016/ND-CP dated October 4, 2016 of the Government, Decree No. 22/2020/ND-CP dated February 24, 2020 of the Government, Circular No. 302/2016/TT-BTC dated November 15, 2016 and Circular No. 65/2020/TT-BTC dated July 9, 2020 of the Ministry of Finance guiding on LF. To be specific:

– BH is obliged to pay LF except for the following cases where LF is exempted: BI has a revenue of 100 million VND/year or less; HKD is not regular and does not have a fixed place of business; HKD for the first time in production and business activities is exempt from LF in the first year of operation.

– LF for BH is as follows:

+ Revenue over 500 million VND/year: 1,000,000 VND/year.

+ Revenue over 300 to 500 million VND/year: 500,000 VND/year.

+ Revenue over 100 to 300 million VND/year: 300,000 VND/year.

– BH (including contracting households, declaring households and individuals leasing properties) is not required to submit LF declaration dossiers, tax authorities (TA) shall base on tax declaration dossiers and tax administration databases to determine total revenue in 2022 from sources and business locations as the basis for calculating the payable LF amount in 2023 and informing taxpayers. Particularly for property leasing, the revenue used as the basis for determining the payable LF of 2023 is the total revenue from property leasing contracts in 2023. For BH that has been dissolved, suspended its business and then resumed business, the revenue of the previous year cannot be determined, the revenue used as the basis for determining the LF shall be based on the production and business establishment of the same scale, geographical area and lines of business.

– BH shall submit LF according to the Notice of TA. For households that have been stable since the beginning of the year, the deadline for submitting LF is January 30, 2023, the deadline for sending the Notice of the TA is January 20, 2023; For households that have been dissolved, suspended its business and then resumed business, the deadline for submitting LF is July 30, 2023 (if going into business in the first 6 months of the year) or July 30, 2024 at the latest (if going into business in the last 6 months of the year), the deadline for sending the Notice of the TA is the 20th day at the latest of the month following the month of going into business.

 

II. GUIDELINES FOR TAX DECLARATION AND TAX PAYMENT FOR CONTRACTING HOUSEHOLDS

1. Declaration of flat tax

– Contracting households shall declare flat tax once a year according to the declaration form 01/CNKD issued together with the Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance, provided by the tax authority November 20, 2021 to December 15, 2021.

– Business lines are declared according to the list of level 4 industries in the Vietnam Economic System, issued together with Decision 27/2018/QD-TTG dated July 6, 2018 of the Prime Minister.

– Contracting households wishing to use invoices to give to customers should request tax authorities to issue them each time they arise. Contracting households are responsible for storing and presenting to the tax authorities the invoices, vouchers, contracts and documents proving lawful goods and services when requesting for the issuance of invoices each time they arise. Particularly in the case of contracting households doing business at border markets, border-gate markets or markets in border-gate economic zones in the Vietnamese territory, they must store invoices, vouchers, contracts and documents proving the lawful goods and present them at the request of competent state management agencies.

– For contracting households, if they use invoices issued by tax authorities for each time they are incurred, the revenue and flat tax rate are determined from the beginning of the year, excluding revenue and tax due to the use of invoices.

2. Submitting tax declaration dossier

– Contracting households shall submit a stable tax declaration at the beginning of the year, Form 01/CNKD, to the tax declaration receiving division located at the People’s Committee of communes, wards and towns no later than December 15, 2021.

– Particularly, in case the contracting household has just started doing business (including households that have dissolved or suspended their business and then resumed their business, declared and converted to the contract method), the household has a change in the year (contracting households change to the declaration method, contracting households change their business lines, contracting households change their business scale during the year), the tax declaration form 01/CNKD shall be submitted to the LXP tax team or the one-stop service counter no later than the 10th day from the date of starting the business, or changing the tax calculation method, or changing the business lines, or changing the business scale.

– If a contracting household applies for an invoice for each time it is incurred, the tax declaration dossier shall include:

+ Tax declaration for business households and individuals, made according to form No. 01/CNKD issued together with Circular 40/2021/TT-BTC;

+ A copy of the economic contract for the provision of goods and services in the same line of business as the business of the contracting household;

+ A copy of the minutes of acceptance and liquidation of the contract;

+ Copies of documents proving the origin of goods and services, such as: A list of agricultural products purchase and sale if they are domestic agricultural products; A list of goods purchased, sold and exchanged by border residents, if they are imported by border residents; Invoices delivered by the seller if they are imported goods purchased from a domestic business organization or individual; relevant documents to prove if the goods are self-manufactured or supplied by individuals;…

The tax authority has the right to request the presentation of the original for comparison and confirmation of the accuracy of the copy against the original.

3. Guidelines for paying flat tax

– Contracting households pay tax to the state budget or through an authorized collection agency (if any) according to the tax agency’s notice of payment.

– The payment notice of the tax authority shall be sent to contracting households by January 20, 2022 for households that have been stable since the beginning of the year, or by the 20th of every month for contracting households that have just started doing business in the year and households that have changes during the year. In case the household is stable at the beginning of the year, the tax authority will send a payment notice together with a public list of contracting households in the same area/business line. In case the tax authority has made it public on the tax authority’s portal, the public list of contracting households in the same area/business line shall not be sent, contracting households can access the portal of the tax authority to look up, compare and give opinions on the above public list.

– Tax payment deadline is the last day of the month. In case a contracting household has just started doing business or changes its activities, the deadline for paying tax for the new month to start business or change business activities is the last day of the following month.

– In case the contracting household requests the issuance of an invoice for each time it is incurred by the tax authority, the deadline for paying tax on the revenue on the invoice is the deadline for declaring the tax on the revenue on the invoice.

– After paying tax into the state budget, the contracting household will receive a tax payment receipt, which is a receipt certified by a commercial bank (for electronic payment) or a receipt certified by the State Treasury (for the case of direct payment at the Treasury) or a receipt of taxes, fees and charges from an authorized tax collector (for the areas where the collection is authorized) or a receipt of taxes, fees and charges collection from the tax authority (for contracting households in areas with no collection points, not yet authorized to collect tax, and in difficult or extremely difficult areas according to the regulations on commune-level administrative units in disadvantaged areas) to serve as a basis for determining that the contracting household has fulfilled the tax payment obligation.

– Contracting households pay taxes electronically in two forms: on the eTax Mobile application through the link with the bank’s payment application; or on the application of electronic tax declaration and payment from 2023 according to the schedule of the tax authorities.

4. Publicizing information of contracting households

– The tax authority will publicize information of contracting households for the first time from December 20, 2021 to December 31, 2021; The second time is no later than January 30, 2022 until the end of the year. Public information includes: List of contracting households that do not have to pay tax; List of contracting households that have to pay tax.

– Location and form of information publication

+ Post publicly at the one-stop service counter of Tax Sub-Departments/Regional Tax Sub-Departments; District People’s Committees; at the door, gate or location convenient for accessing information, the appropriate location of the headquarters of the People’s Committee of the commune, ward or town; Tax Team headquarters; Market management.

+ Send public documents to the People’s Council and the Fatherland Front of districts, communes, wards and towns.

+ Post publicly the information of contracting households according to each location on the website of the tax industry.

+ Contracting households can look up public information on the eTax Mobile application or access the following address: http://gdt.gov.vn.

5. Receiving feedback

If there are any problems and feedback on revenue and flat tax rates, contracting households should contact the tax authority for answers in the following ways:

Contact LXP Tax Team directly. Directly contact the “One-stop” Service Counter of the Tax Sub-Department. Call the Tax Sub-Department’s Taxpayer Support Department, which is publicly listed at the “One-Stop” Service Counter of the Tax Department. Send documents to tax authorities at all levels. Send comments to the email of the Tax Sub-department which is publicly posted at the “One-Stop” Service Counter of the Sub-Department of Tax.

The tax authority is responsible for replying within 02 working days from the date of receiving the feedback.

6. Contracting households stop or suspend business

– Contracting households, if stopping or suspending their business, shall notify the tax authority at least 01 working day before stopping or suspending their business. In case the contracting household stops or suspends its business at the request of a competent state management agency, it is not required to send a notice to the tax authority.

– The tax authority shall base on the time of business stoppage or suspension according to the notice of the taxpayer or a competent state agency to adjust the payable flat tax amount as prescribed.

 

II. GUIDELINES FOR TAX DECLARATION AND TAX PAYMENT FOR DECLARING HOUSEHOLDS

1. Tax declaration

– Declaring households include: Large-scale business households; and business households have not met the large scale but choose to pay tax according to the declaration method. Criteria for determining a large-scale business household is the revenue or labor employed, specifically: in the fields of agriculture, forestry, fishery and industry, construction with an average annual number of employees participating in social insurance is 10 or more or the total revenue of the preceding year is 3 billion VND or more; In the field of commerce and service, the average annual number of employees participating in social insurance is 10 or more or the total revenue of the preceding year is 10 billion VND or more.

– Declaring households must comply with the accounting, invoice and voucher regime. In case the household declares in the field or line of business for which there is a basis for determining business revenue as certified by the competent authority, the accounting regime is not required.

– Declaring households shall comply with the accounting regime as guided in Circular No. 88/2021/TT-BTC dated October 11, 2021 of the Ministry of Finance from January 1, 2022.

– Declaring households shall declare tax on a monthly or quarterly basis as prescribed.

2. Tax declaration dossier

Tax declaration dossiers for declaring households include:

a) Tax declaration form No. 01/CNKD issued together with Circular 40/2021/TT-BTC;

b) Appendix List of business activities in the period according to form No. 01-2/BK-HDKD issued together with Circular 40/2021/TT-BTC. In case the household declares, if there is a basis to determine the revenue according to the certification of the competent authority, it is not required to submit the Appendix List, form No. 01-2/BK-HDKD.

3. Location for submitting tax declaration dossier

The place to submit tax declaration dossiers for declaring households is the tax sub-department directly managing where the declaring household carries out its production and business activities.

4. Deadline for submitting tax declaration dossier

a) The deadline for submitting tax declaration dossiers for declaring households on a monthly basis is the 20th day of the month following the month in which the tax liability arises.

b) The deadline for submitting tax declaration dossiers for declaring households on a quarterly basis is the last day of the first month of the next quarter adjacent to the quarter in which the tax liability arises.

5. Deadline for tax payment

The deadline for tax payment is the last day of the deadline for submitting tax declaration dossier. In case of additional declaration of tax declaration dossiers, the deadline for tax payment is the deadline for submitting tax declaration dossiers of the tax period with errors or omissions.

6. Declaring households suspending its business

In case the declaring household suspend its business, it shall notify the supervising tax authority at least 01 working day before the business suspension and do not have to submit a tax declaration dossier, unless the declaring household suspends its business for less than a month if it declares tax on a monthly basis or suspends its business for less than a quarter if it declares tax on a quarterly basis.

7. Declaring households converted from contracting households during the year

In the year of conversion to a declaring household, before the conversion, the contracting household declares to adjust and supplement the flat tax declaration form 01/CNKD. The tax authority shall base itself on the declaration of adjustment and supplementation of the contracting household to adjust and reduce the contracted tax for the conversion period. The deadline for contracting households to submit the adjusted declaration is the 10th day from the date of commencement of tax calculation method conversion.

 

III. GUIDELINES FOR USING INVOICES FOR BH AND BI

1. BH using e-invoices

– BH using e-invoices (excluding the case of using invoices for each time they are generated) must comply with the accounting regime and pay tax according to the declaration method.

– BH to apply e-invoices need to have an email, a digital signature (issued through an authentication service provider) and an internet-connected computer or mobile device with an e-invoice application installed. The e-invoice of BH is implemented through the e-invoice service provider (information about the e-invoice service provider is publicly available on the portal of the General Department of Taxation); or directly on the website of the General Department of Taxation (for the case where the BH declares tax according to each time it arises or the BH is located in an area with difficult or extremely difficult socio-economic conditions according to the Government’s regulations, is eligible for free invoice service for 12 months).

– Contracting households and households that pay tax upon each arising need an invoice to be delivered to the customer shall request the tax authority to issue an e-invoice for each time it is incurred.

2. BH using paper invoices purchased from tax authorities

– BH using invoices purchased from tax authorities are business households in areas with difficult or extremely difficult socio-economic conditions according to the Government’s regulations, do not conduct transactions with tax authorities by electronic means, do not have information technology infrastructure, do not have an accounting software system, do not have an e-invoice making software to use e-invoices and to transmit e-invoice data to buyers and to tax authorities.

– BH eligible to purchase invoices from tax authorities mentioned above can only apply for a maximum period of 12 months. The maximum period of 12 months is counted once: from July 1, 2022 (for BH operating before July 1, 2022); or from the time of registration to start using invoices (for new BH established after July 1, 2022).

– BH eligible to purchase invoices from the above-mentioned tax authorities are responsible for submitting reports on the use of invoices and sending invoice data to the tax authorities according to Form No. 01/TH-HDDT Appendix IA issued together with Decree No. 123 /2020/ND-CP along with the submission of tax declaration.

3. BH using e-invoice generated from cash registers

– BH using e-invoices generated from cash registers are: business households and individuals paying tax by the declaration method, having activities of providing goods and services directly to consumers according to the business model (commercial center; supermarket; retail consumer goods; catering; restaurant; hotel; retail pharmacy; entertainment services and other services) and choosing to use electronic invoices generated from the cash registers.

– BH using e-invoices generated from cash registers are not required to use digital signatures on invoices when selling goods or providing services, but they still have to use digital signatures when making registering/changing registration information and sending e-invoice data to tax authorities; expenses for purchasing goods and services using invoices generated from cash registers shall be determined as expenses with sufficient legal invoices and documents when determining tax obligations; BH shall take the initiative 24/7 in invoicing, handling errors immediately for each transaction arising on the taxpayer’s payment device if the e-invoice software has been installed with the tax authority’s code generated from cash registers according to the data format announced by the General Department of Taxation; At the end of the day, the BH only has to transfer the e-invoice data used during the day to the tax authority through an organization providing the service of receiving, transmitting and storing electronic data.

– The implementation of e-invoices generated from cash registers is in accordance with the tax authority’s roadmap. In case a BH that is using an e-invoice with a tax authority’s code chooses to switch to using an e-invoice generated from cash registers, it shall change its registration information to use e-invoice according to the provisions of Article 15 of Decree No. 123/2020/ND-CP./.