Are household businesses required to carry out taxpayer registration in Vietnam? If household businesses register directly with the tax authority, what is the time limit for taxpayer registration in Vietnam?

Are household businesses required to carry out taxpayer registration in Vietnam?

Based on Clause 1, Article 30 of the Law on Tax Administration 2019, it is stipulated that taxpayers must carry out taxpayer registration and be issued a tax code by the tax authority before commencing production, business activities, or having any obligations to the state budget. Subjects required for taxpayer registration include:

- Enterprises, organizations, and individuals conducting taxpayer registration through a one-stop-shop mechanism together with business registration, cooperative registration, and business registration as stipulated by the Enterprise Law and other relevant legal requirements;

- Organizations and individuals not falling into the above case must conduct taxpayer registration directly with the tax authority according to the provisions of the Minister of Finance.

Additionally, according to Clause 1, Article 2 of the Law on Tax Administration 2019, taxpayers include:

- Organizations, households, household businesses, and individuals paying taxes according to tax laws;

- Organizations, households, household businesses, and individuals paying other state budget revenues;

- Organizations and individuals withholding taxes.

Thus, household businesses are subjects required to carry out taxpayer registration directly with the tax authority according to regulations.

Are household businesses required to carry out taxpayer registration in Vietnam? (Image from Internet)

If household businesses register directly with the tax authority, what is the time limit for taxpayer registration in Vietnam?

The time limit for the first taxpayer registration is determined according to Article 33 of the Law on Tax Administration 2019 as follows:

time limit for the first taxpayer registration

1. Taxpayers registering together with business registration, cooperative registration, and business registration, shall follow the timeline stipulated by the respective laws on business registration, cooperative registration, and business registration.

2. Taxpayers registering directly with the tax authority must carry out registration within 10 working days from the following dates:

a) Issuance of household business registration certificate, establishment and operation license, investment registration certificate, or establishment decision;

b) Commencement of business activities for organizations not required to register for business or household businesses and individual businesses required to register but have not received a business registration certificate;

c) Arising responsibility to withhold tax and submit tax on behalf of others; submission on behalf of individuals under business cooperation contracts;

d) Signing of contracts for contracting with foreign contractors, subcontractors particularly declaring taxes directly with the tax authority; signing of oil and gas agreements or contracts;

dd) Arising of personal income tax obligations;

e) Arising of claims for tax refunds;

g) Arising of other obligations to the state budget.

3. Organizations or individuals paying income have the responsibility to register taxpayer numbers on behalf of individuals receiving income at the latest 10 working days from the day the tax obligation arises if the individual does not yet have a tax code; taxpayer registration on behalf of the dependent of taxpayers at the latest 10 working days from the day of taxpayer registration for family deduction according to laws if the dependent does not yet have a tax code.

Therefore, household businesses registering directly with the tax authority must carry out taxpayer registration within 10 working days from the following day:

- Issuance of the household business registration certificate;

- Commencement of business activities for household businesses required to register but not yet granted a business registration certificate.

Where should a household business submit its taxpayer registration when registering directly with the tax authority in Vietnam?

The location for filing the first taxpayer registration for taxpayers registering directly with the tax authority is specified in Clause 2, Article 32 of the Law on Tax Administration 2019 as follows:

- Organizations, household businesses, and individual businesses submit taxpayer registration documents at the tax authority where the organization, household business, or individual business is headquartered;

- Organizations or individuals responsible for withholding and paying taxes on behalf of others should submit their taxpayer registration documents at the tax authority directly managing these organizations or individuals;

- Households and individuals not engaged in business must submit taxpayer registration documents at the tax authority where the taxable income arises, the place of permanent residence registration, temporary residence registration, or the location of obligations to the state budget.

Thus, household businesses submit taxpayer registration documents at the tax authority where the household business is headquartered.

Additionally, the initial taxpayer registration document for household businesses registering directly with the tax authority is determined according to Clause 3, Article 31 of the Law on Tax Administration 2019 and includes:

- taxpayer registration form or tax return;

- Copy of identity card, citizen identification card, or passport;

- Other relevant documents.