-
Legal grounds
- Decree 126/2020/ND-CP issued on October 19, 2020
- Circular 40/2021/TT-BTC issued on June 1, 2021
- Circular 88/2021/TT-BTC issued on October 11, 2021
2. Taxes must be declared and paid
- License fees
- VAT
- Personal income tax
3. Accounting jobs
A. Register to use e-invoices
- From 2022, households declaring in HCM area will almost be required to use this form instead of paper invoices issued from the Tax Authority as before.
- Equipment needed:
+Computer/smartphone
+Internet
+Digital signature (token provided by the network provider)
+Invoicing software
- Submit a registration declaration to use electronic invoices, Form 01/DKTĐ_HĐĐT, to the tax authority (Normally when purchasing electronic invoice software, network operators will also submit this registration document. Business households are not required to what more)
- Wait for the tax authority to accept
- When selling goods/services, business households log in to this invoice software to manipulate
– Advantage:
- Easily manage the number of invoices issued
- Reduce the time spent writing paper invoices like before
– Defect
- Invoices can only be issued at the current date (Cannot be issued backdated or in advance like paper invoices)
B. Daily accounting vouchers (PL TT 88/2021)
| Receipts | Form No. 01-TT |
| Payment | Form No. 02-TT |
| Receipt | Form No. 03-VT |
| Delivery bill | Form No. 04-VT |
| Table of salary payments and employee income | Form No. 05-LĐTL |
| Bill | |
| Paper of payment to the state budget | |
| Debit note, Bank credit note | |
| accreditative |
The accounting book records daily, when the tax is checked, it will be submitted
Sole proprietors do not have to settle year-end taxes like businesses.
C. Accounting books must be kept:
| Number | Name of accounting book | Symbol (TT88/2021) |
| 1 | Detailed book of revenue from sales of goods and services | Form No. S1- HKD |
| 2 | Detailed book of materials, tools, products, goods | Form No. S2-HKD |
| 3 | Book of production and business expenses | Form No. S3-HKD |
| 4 | Book to monitor the implementation of tax obligations to the state budget | Form No. S4-HKD |
| 5 | Book to monitor the status of salary payment and salary payments of employees | Form No. S5-HKD |
| 6 | Cash book money | Form No. S6-HKD |
| 7 | Bank deposit book | Form No. S7-HKD |
D. Monthly/quarterly tax obligations (registered with tax authorities) according to Circular 40/2021/TT-BTC.
D.1 Business license tax rate
+ Revenue over 500 million VND/year: 1,000,000 VND/year.
+ Revenue from over 300 to 500 million VND/year: 500,000 VND/year.
+ Revenue over 100 to 300 million VND/year: 300,000 VND/year.
D.2 VAT and PIT
| VAT amount payable | = | Revenue subject to VAT | x | VAT rate |
| mount of Personal Income Tax to be paid | = | Taxable Income for Personal Income Tax | x | Personal Income Tax rate |
- Phụ lục Bảng kê hoạt động kinh doanh trong kỳ mẫu số 01-2/BK-HĐKD theo Thông tư 40/2021/TT-BTC;
-
Tax Declaration Form No. 01/CNKD according to Circular 40/2021/TT-BTC; Appendix to the Business Operation Ledger for the Period, Form No. 01-2/BK-HĐKD according to Circular 40/2021/TT-BTC.
LIST OF OCCUPATIONS
CALCULATION OF VAT, PERSONAL PIT TAX ACCORDING TO % OF REVENUE FOR BUSINESS HOUSEHOLDS AND INDIVIDUAL BUSINESSES
(Issued together with Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Minister of Finance))
_______________
| Number | Industry directory | VAT calculation percentage | Personal income tax tax rate |
| 1. | Distributing and supplying goods | ||
| – Wholesale and retail activities of all types of goods (except for the value of goods sold by agents at the correct price to earn commission);
– Bonuses, sales support, sales promotion, trade discount, payment discount, cash or non-cash support for contracted households; |
1% | 0,5% | |
| – Distribution and supply activities of goods are not subject to VAT, do not have to declare VAT, and are subject to 0% VAT according to VAT law;
– Business cooperation activities with organizations in this industry group where the organization is responsible for declaring VAT on the entire revenue of business cooperation activities according to regulations; – Bonuses, support to achieve sales, promotions, trade discounts, payment discounts, cash or non-cash support payments to contracted households associated with the purchase of goods and services that are not subject to VAT. Not required to declare VAT, subject to 0% VAT according to VAT law; – Compensation for breach of contract and other compensation. |
– | 0,5% | |
| 2. | Services and construction do not include raw materials | ||
| – Accommodation services include: Activities of providing short-term accommodation facilities for tourists and other visitors; providing long-term accommodation other than apartments for students, workers and the like; activities of providing accommodation facilities with food services or recreational facilities;
– Cargo loading and unloading services and other support service activities related to transportation such as yard business, ticket sales, vehicle keeping; – Postal services, mail and parcel delivery; – Brokerage, auction and agent commission services; – Legal consulting services, financial consulting, accounting, auditing; tax and customs administrative procedures services; – Data processing services, information portal rental, information technology and telecommunications equipment; advertising on digital information content products and services; – Office support services and other business support services; – Sauna, massage, karaoke, discotheque, billiards, internet, game services; – Tailoring and laundry services; haircut, hairdressing, shampooing; – Other repair services include: repair of computers and household appliances; – Consulting services, design, supervision of basic construction; – Other services subject to VAT calculation according to the credit method with the VAT rate of 10%; – Construction and installation excluding bidding for materials (including installation of industrial machinery and equipment); |
5% | 2% | |
| – Service provision activities are not subject to VAT, do not have to declare VAT, and are subject to 0% VAT according to VAT law;
– Business cooperation activities with organizations in this industry group where the organization is responsible for declaring VAT on the entire revenue of business cooperation activities according to regulations; – Compensation for breach of contract and other compensation; |
– | 2% | |
| – Rental property includes:
+ Lease of houses, land, shops, factories, warehouses, except accommodation services; + Rental of means of transport, machinery and equipment without a driver; + Renting other properties without services; |
5% | 5% | |
| – Working as a lottery agent, insurance agent, multi-level marketing agent;
– Compensation for breach of contract and other compensation. |
– | 5% | |
| 3. | Production, transportation, services associated with goods, construction including raw materials | ||
| – Production, processing, and processing of goods;
– Mining and processing of minerals; – Cargo and passenger transport; – Services accompanying the sale of goods such as training, maintenance, and technology transfer services accompanied by product sales; – Food Service; – Repair and maintenance services for machinery and equipment, means of transport, cars, motorcycles, motorbikes and other motor vehicles; – Construction and installation including raw materials (including installation of machinery and industrial equipment); – Other activities subject to VAT calculation using the deduction method with a VAT rate of 10%; |
3% | 1,5% | |
| – Activities that are not subject to VAT, do not have to declare VAT, are subject to 0% VAT according to the law on VAT;
– Business cooperation activities with organizations belonging to this industry group that organizations are responsible for declaring VAT on the entire revenue of business cooperation activities according to regulations. |
– | 1,5% | |
| 4. | Other business activities | ||
| – The production of products subject to VAT calculation by the credit method with the VAT rate of 5%; |
2% |
1% |
|
| – The provision of services subject to VAT calculation by the credit method with the VAT rate of 5%; | |||
| – Other activities not listed in groups 1, 2, 3 above; |
E. Where to submit tax returns
The Tax Department directly manages the places where business households and individuals conduct production and business activities.
F. Deadline for submitting tax declaration documents
a) If using the monthly declaration method, the latest is the 20th day of the month following the month in which tax liability arises.
b) If tax is declared quarterly, no later than the last day of the first month of the quarter immediately following the quarter in which the tax liability arises.
To better understand Personal Income Tax (TNCN) and Value Added Tax (VAT) for individual businesses, including family-owned businesses in Vietnam, please refer to the article: Tax Rates for TNCN and VAT for Individuals and Household Businesses.
For information on electronic invoices in Vietnam, please refer to the article: Electronic Invoices.
