Are travelling traders required to submit copies of documents proving the origin of goods in their tax declaration dossier in Vietnam?

Are travelling traders required to submit copies of documents proving the origin of goods in their tax declaration dossier in Vietnam?

Based on Clause 2, Article 6 of Circular 40/2021/TT-BTC, the regulations are as follows:

Tax calculation method for business individuals paying taxes on a per transaction basis

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2. Business individuals paying taxes on a per transaction basis include:

a) travelling traders;

b) Individuals as private construction contractors;

c) Individuals transferring the national internet domain name ".vn";

d) Individuals with income from digital content products and services if they do not opt to pay taxes by the declaration method.

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Additionally, Clause 1, Article 12 of Circular 40/2021/TT-BTC provides:

Tax management for business individuals paying taxes on a per transaction basis

1. Tax declaration dossier

The tax declaration dossier for business individuals paying taxes on a per transaction basis is stipulated in point 8.3 Appendix I - List of tax declaration dossiers attached to Decree No. 126/2020/ND-CP dated October 19, 2020, by the Government of Vietnam. Specifically:

a) Tax declaration form for business households and individuals according to form number 01/CNKD issued with this Circular;

b) The documents accompanying the tax declaration dossier on a per transaction basis include:

- Copies of the economic contract for the provision of goods and services;

- Copies of the acceptance report, contract liquidation;

- Copies of documents proving the origin of goods such as: purchase records of agricultural products if they are domestic agricultural goods; purchase, exchange records of border residents if they are imported border resident goods; invoices from the seller if they are imported goods purchased from domestic business organizations and individuals; relevant documents for proof if they are goods produced by the individual themselves;...

The tax authority has the right to request the presentation of the original documents for comparison, confirmation of the authenticity of the copies against the originals.

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Consequently, travelling traders are one of the activities that pay taxes on a per transaction basis, and the tax declaration dossier for this method must be accompanied by copies of documents proving the origin of goods. Furthermore, the tax authority is entitled to request the presentation of original documents for verification and confirmation of the authenticity of the copies against the originals.

Are travelling traders required to submit copies of documents proving the origin of goods in their tax declaration dossier in Vietnam? (Image from the Internet)

Where do travelling traders submit their tax declaration dossiers in Vietnam?

Based on Article 12 of Circular 40/2021/TT-BTC, the regulations are as follows:

Tax management for business individuals paying taxes on a per transaction basis

1. Tax declaration dossier

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2. Place of submission of tax declaration dossiers

The place of submission of tax declaration dossiers for business individuals paying taxes on a per transaction basis is stipulated in Clause 1, Article 45 of the Law on Tax Management. Specifically:

a) In the case of mobile business, tax declaration dossiers are submitted to the tax office directly managing the place where the individual conducts the business activity.

b) In the case of individuals with income from digital content products and services, tax declaration dossiers are submitted to the tax office directly managing the place where the individual resides (permanent or temporary residence).

c) In the case of individuals with income from transferring the national internet domain name ".vn", tax declaration dossiers are submitted to the tax office in the place where the individual resides. In the case where the transferring individual is a non-resident, the tax declaration dossier is submitted to the tax authority directly managing the organization that manages the national internet domain name ".vn".

d) In the case of individuals as private construction contractors, tax declaration dossiers are submitted to the tax office directly managing the place where the individual conducts the construction activity.

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Therefore, in principle, mobile business is a form of tax declaration on a per transaction basis, and tax declaration dossiers are submitted to the tax office directly managing the place where the individual conducts the business activity.

What are responsibilities of the Tax Office in managing business households and individuals in Vietnam?

Based on Article 19 of Circular 40/2021/TT-BTC which stipulates that the Tax Office, besides organizing the regular collection tasks, also has responsibilities in managing business households and individuals as follows:

- Propagate, support business households and individuals in declaring taxes, submitting tax declaration dossiers, paying taxes, and public information lookup about business households and individuals according to regulations.

- Implement the sequence of determining revenue and the tax rate for business households and individuals who pay taxes by the forfait method as guided in Article 13 of this Circular, including key tasks such as: determining revenue, forfait tax rate; publicly posting information about business households and individuals paying taxes by the forfait method; consulting the Tax Advisory Council; preparing and approving the Tax Register; implementing adjustments in revenue and forfait tax rate in the case where business households and individuals have changes in production, business activities; organizing revenue surveys of business households and individuals paying taxes by the forfait method.

- Conduct periodic inspections, according to the plan at the tax authority's office based on data related to business households, individuals, and affiliated organizations. For high-risk cases with signs of violations, inspections are carried out at the taxpayer’s premises to promptly detect, prevent any legal violations regarding tax and tax management.

- Develop a separate database at each Tax Office regarding tax management for business households and individuals and yearly by November 01, the database must be finalized as a basis for preparing the tax register for the following year. The separate database is developed based on information from: tax declaration dossiers of business households and individuals; actual tax revenue management data for business households and individuals; results from annual business revenue surveys conducted by tax authorities; results from annual practical checks regarding revenue construction and forfait tax rate performed by tax authorities; information from related state management agencies; actual conditions in the locality, economic growth factors affecting local budget revenue,...

- Report to the chairman of the People's Committee to direct departments, agencies at the local level to cooperate with tax authorities in managing taxes for business households and individuals in the locality.

- Coordinate with tax agencies in other localities in inspection, control, comparison, providing information on business households and individuals.