From February 6, 2025, what is the procedure for TIN deactivation for organizations not operating at the registered address in Vietnam?

What does "Not operate at registered address" mean?

Based on Clause 2, Article 41 of Decree 01/2021/ND-CP regulating the legal status of enterprises, it can be understood that Not operate at registered address is as follows:

"Not operate at registered address" is the legal status of an enterprise where, through inspection and verification by the tax administration agency and related units, the enterprise cannot be found at the registered address.

From February 6, 2025, what is the procedure for TIN deactivation for organizations not operating at the registered address in Vietnam?

According to Article 17 of Circular 86/2024/TT-BTC (effective from February 6, 2025) which regulates the procedure for TIN deactivation for organizations not operating at the registered address, the following can be noted:

(1) Within 01 working day from the date the tax authority issues or receives the document (Decision, Document, Notification) or the taxpayer's file in one of the following cases, the tax authority updates the information into the taxpayer registration application system and changes the taxpayer's status to status 09 “Taxpayer awaiting verification of operational status at the registered address”, including:

+ The tax authority issues a notification requesting the submission of the tax declaration dossier for a second time, but the taxpayer still has not submitted the tax declaration.

+ The tax authority receives the document resent by the tax authority to the taxpayer via postal services but returned due to no recipient or a non-existent address.

+ The tax authority receives information provided by organizations and individuals with evidence enclosed regarding the taxpayer not operating at the registered address.

+ The tax authority receives a document from a competent state management agency notifying of the taxpayer not operating at the registered address.

+ The tax authority receives a file for electronic invoice registration or a file to change electronic invoice registration information where the taxpayer is classified as a risk category that requires verifying operational status at the registered address.

+ The tax authority receives information about the issuance of a Business Registration Certificate, Cooperative Registration Certificate, Cooperative Group Registration Certificate from the National Business Registration Portal transmitted to the taxpayer registration application system, where the taxpayer is classified as a risk category that requires verifying operational status at the registered address.

+ The tax authority issues the initial taxpayer registration certificate or when changing taxpayer registration information where the taxpayer is classified as a risk category that requires verifying operational status at the registered address.

Simultaneously, the tax authority sends information about the taxpayer belonging to the category awaiting verification of operational status at the registered address to the taxpayer's e-tax transaction account; the email address, phone number of the taxpayer's legal representative registered with the tax authority or via the EtaxMobile, VnelD application of the taxpayer's legal representative. The taxpayer may go directly to the tax authority to explain or supplement information, documents in writing to demonstrate the operational status at the registered address.

In case the taxpayer submits a tax declaration or explanation before the tax authority conducts verification as prescribed in Clause 2, Article 17 Circular 86/2024/TT-BTC and is accepted by the tax authority, the tax authority updates the taxpayer's TIN status on the taxpayer registration application system on the same working day or at the latest by the start of the next working day from the date of receiving the tax declaration or acceptance of the taxpayer's explanation.

(2) Within five (05) working days from the date the tax authority changes the taxpayer's TIN status to status 09 “Taxpayer awaiting verification of operational status at the registered address” according to the regulations in Clause 1, Article 17 Circular 86/2024/TT-BTC, if the taxpayer still hasn't submitted the tax declaration, or does not provide an explanation, or the explanation is not accepted by the tax authority, the tax authority conducts practical verification of the taxpayer's operational status at the registered address.

- In case the verification result indicates that the taxpayer is still operating at the registered address, the taxpayer must sign a confirmation in the Verification Report of the taxpayer's operational status at the registered address, and the tax authority updates the taxpayer's operational status back on the taxpayer registration application system on the same working day or at the latest by the start of the next working day from the date of signing the verification report, while the taxpayer must fully comply with tax obligations as requested by the tax authority according to law.

- In case the verification result indicates that the taxpayer is not operating at the registered address, the tax authority cooperates with local authorities (People's Committee of the commune, local police) to establish a Verification Report of the taxpayer's operational status at the registered address.

The tax authority issues a Notification of the taxpayer not operating at the registered address within 03 (three) working days from the date recorded on the report and updates the taxpayer's TIN information to status 06 “Taxpayer not operating at the registered address” with reason code 09 “Tax authority issues Notification of non-operation at registered business address” in the taxpayer registration application system on the same working day or at the latest by the start of the next working day from issuing the Notification of the taxpayer not operating at the registered address; simultaneously transmitting information to the National Business Registration Portal on the same day as updating the status "Taxpayer not operating at the registered address" in the taxpayer registration application system.

(3) In case the managing entity is in any one of the cases prescribed in Clause 1, Clause 2, Article 17 Circular 86/2024/TT-BTC with dependent units:

- The tax authority managing the managing entity must simultaneously notify the dependent units about the managing entity being identified as not operating at the registered address within 02 (two) working days from the date of updating status 09 “Taxpayer awaiting verification of operational status at the registered address”.

- The tax authority managing the managing entity when issuing Notification of the managing entity not operating at the registered address updates the non-operational status at the registered address of the dependent units into the taxpayer registration application system on the same working day or at the latest by the start of the next working day from the date of issuing the notification.

(4) After issuing a Notification of the taxpayer not operating at the registered address for enterprises, cooperatives, cooperative groups, dependent units of enterprises, dependent units of cooperatives, the tax authority collaborates when business registration authorities handle violations or revoke the Business Registration Certificate, Cooperative Registration Certificate, Cooperative Group Registration Certificate, Branch Operation Registration Certificate, Representative Office, Business Location according to the provisions of the Enterprise Law, Cooperative Law.

(5) After the tax authority issues a Notification of the taxpayer not operating at the registered address:

- In case the tax authority receives information regarding the revocation of the taxpayer's license from a competent authority, the tax authority updates the information and changes the taxpayer's TIN status and substitute taxpayer code (if any) to status 06 reason 13 “Taxpayer not operating at the registered address and license revoked”.

- In case the tax authority receives a decision to initiate bankruptcy proceedings, a court's declaration of the taxpayer's bankruptcy, the tax authority updates the information and changes the taxpayer's TIN status to status 06 reason 07 or reason 12. The directly managing tax authority collaborates with the tax authority managing revenue collection to determine the taxpayer's tax liability to send to the Court for tax debt recovery in accordance with Bankruptcy Law 2014.

- If the taxpayer wishes to carry out dissolution, deactivation of operation procedures (including voluntary and compulsory dissolution), the taxpayer must submit a request for deactivation of TIN validity. If there is a change in headquarters address or other taxpayer registration information that has been approved by a competent state authority, the taxpayer must attach the change information file.

The tax authority, upon receiving a complete dossier, lists the outstanding tax declaration dossiers, the invoice usage status, the tax amount, and other amounts payable to the state budget or remaining outstanding, and imposes penalties for violations of tax, invoice laws until the taxpayer submits a dossier requesting deactivation of TIN validity in accordance with regulations, not requiring the tax authority to verify the taxpayer's operational status at the registered address in this case.

Within 03 (three) working days from the date the taxpayer fully complies with the administrative tax, invoice violations, fully pays the tax amounts and other state budget amounts or debts, the tax authority changes the taxpayer's and its dependent units' TIN status to status 06 reason 03 on the taxpayer registration application system.

(6) The tax authority deactivates the taxpayer's TIN validity after issuing a Notification of the taxpayer not operating at the registered address (except as prescribed at point c, Clause 5, Article 17 Circular 86/2024/TT-BTC) as follows:

- For taxpayers stipulated in Clause 2, Article 4 Circular 86/2024/TT-BTC who have completed tax, invoice obligations or do not incur tax, invoice obligations.

- For taxpayers whose tax debts, late payment interest, penalties have been written off, overpayments have been settled (the taxpayer has completed tax obligations) and completed invoice procedures as prescribed by the invoice law.

In case the taxpayer is an enterprise, cooperative, cooperative group that has not been updated to a dissolved status in the National Business Registration Portal, the tax authority sends a list of enterprises, cooperatives, cooperative groups that have been notified by the tax authority as non-operating at the registered address and deactivated TIN validity to business registration authorities for handling, updating the legal status of enterprises, cooperatives, cooperative groups according to the provisions of business registration law, cooperative registration law, cooperative group registration law.

From February 6, 2025, what is the procedure for TIN deactivation for organizations not operating at the registered address in Vietnam? (Image from Internet)

What obligations must be fulfilled before TIN deactivation for organizations in Vietnam from February 6, 2025?

Based on Article 15 of Circular 86/2024/TT-BTC (effective from February 6, 2025) regulating the obligations that must be fulfilled before TIN deactivation for organizations as follows:

- Taxpayers must fulfill obligations regarding invoices in accordance with invoice law.

- Taxpayers must fulfill obligations regarding tax declaration dossiers, tax payment, and handling overpaid tax amounts, any outstanding VAT credit (if any) according to Articles 43, 44, 47, 60, 67, 68, 70, 71 of Tax Administration Law 2019 with the tax administration agency, including obligations under substitute TINs (if any).

- In case the managing entity has dependent units, all dependent units must complete the procedures for deactivating TIN validity before deactivating the managing entity's TIN.