From July 1, 2025, which identification number should household businesses use when paying taxes in Vietnam?
From July 1, 2025, which identification number should household businesses use when paying taxes in Vietnam?
Pursuant to Article 5 of Circular 86/2024/TT-BTC regulating the tax identification number for household businesses as follows:
Structure of Tax identification number
- The tax identification number includes tax identification numbers for enterprises, organizations, and tax identification numbers for households, household businesses, and individuals. In which:
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b) The tax identification number for households, household businesses, and individuals is the tax identification number issued by the tax authority for cases stipulated at points a, đ, e, h clause 4 of this Article; is the personal identification number issued by the Ministry of Public Security according to the provisions of law on identification for cases using the personal identification number instead of the tax identification number as stipulated in clause 5 of this Article.
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- The personal identification number of Vietnamese citizens issued by the Ministry of Public Security according to the provisions of law on identification is a natural number string consisting of 12 digits used in place of the individual's tax identification number or dependent as stipulated at points k, l, n clause 2 Article 4 of this Circular; additionally, the personal identification number of the representative of the household, household business, or business individual is also used in place of the tax identification number of that household, household business, or business individual.
Referring to clause 4 Article 5 of Circular 86/2024/TT-BTC regulated as follows:
Structure of Tax identification number
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- Classification of the tax identification number structure issued by the tax authority
a) The 10-digit tax identification number is used for enterprises, cooperatives, organizations with legal status or organizations without legal status but directly resulting in tax obligations (hereafter referred to as independent units); an individual who is a foreign national or a Vietnamese national residing abroad without a personal identification number established from the National Database on Population.
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dd) Foreign suppliers under the provisions at point e clause 2 Article 4 of this Circular, who do not have a tax identification number in Vietnam upon direct tax registration with the tax authority, are assigned a 10-digit tax identification number. The foreign supplier uses the assigned tax identification number to declare and pay taxes directly or provide the tax identification number to organizations, individuals in Vietnam authorized by the foreign supplier or provide it to commercial banks, intermediary payment service providers to perform tax deduction, pay on behalf and declare in the Tax Deduction Table of foreign suppliers in Vietnam.
e) Organizations, individuals who deduct and pay on behalf according to the provisions at point g clause 2 Article 4 of this Circular are assigned a 10-digit tax identification number (hereafter referred to as the substitutive tax identification number) to declare and pay tax on behalf of foreign contractors, foreign subcontractors, foreign suppliers, organizations, and individuals with business cooperation contracts if there is a demand for a separate tax identification number for the business cooperation contract. Foreign contractors, foreign subcontractors as stipulated at point đ clause 2 Article 4 of this Circular, declared and paid on behalf by the Vietnamese side, are assigned a 13-digit tax identification number according to the Vietnamese substitutive tax identification number to confirm tax obligation completion in Vietnam.
When the taxpayer changes tax registration information, temporarily suspends activities, or resumes activities before the deadline, terminates tax identification number validity, and restores tax identification number according to the provisions regarding the taxpayer's tax identification number, the substitutive tax identification number is updated correspondingly by the tax authority according to taxpayer’s tax identification number information and status. Taxpayers do not have to submit the dossier stipulated in Chapter II, Chapter III of this Circular for the substitutive tax identification number.
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h) Organizations, individuals prescribed at point m clause 2 Article 4 of this Circular having one or more revenue commission contracts with a tax authority are assigned one substitutive tax identification number to pay amounts collected from taxpayers into the state budget.
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Additionally, clause 2 Article 38 of Circular 86/2024/TT-BTC stipulates the effective date as follows:
Effective Date
- This Circular comes into effect from February 6, 2025, replacing Circular No. 105/2020/TT-BTC dated December 3, 2020, of the Ministry of Finance guiding tax registration, excluding the cases specified in clause 2 of this Article.
- The tax identification numbers issued by the tax authority to individuals, households, and household businesses will be implemented until June 30, 2025. From July 1, 2025, taxpayers, tax management agencies, other agencies, organizations, and individuals involved in the use of the tax identification number under the provisions of Article 35 of the Law on Tax Administration shall implement the use of personal identification numbers in place of the tax identification number.
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Thus, from July 1, 2025, the tax identification number for household businesses is divided into two types as follows:
- For household businesses in cases stipulated at points a, đ, e, h clause 4 Article 5 of Circular 86/2024/TT-BTC, the tax identification number will be the tax identification number issued by the tax authority;
- In cases stipulated in clause 5 Article 5 of Circular 86/2024/TT-BTC, the tax identification number will be the personal identification number issued by the Ministry of Public Security pursuant to the provisions of law on identification. Specifically, the personal identification number of the household representative will be used in place of the tax identification number of the household.
What if the tax registration information of the household business does not match the information in the National Database on Population of Vietnam?
Based on clause 3 Article 39 of Circular 86/2024/TT-BTC stipulates as follows:
Transitional Provisions
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- In case a household business, household, or individual has been issued a tax identification number before July 1, 2025, but the tax registration information from the representative of the household business, household representative, or individual does not match the information of the individual stored in the National Database on Population or is incomplete, the tax authority will update the status of the tax identification number of the household business, household, individual to status 10 "Tax identification number awaiting personal identification number information update". The taxpayer needs to carry out the procedure to change the tax registration information with the tax authority in accordance with clause 1, clause 4 Article 25 of this Circular to ensure the information matches the National Database on Population before using the personal identification number instead of the tax identification number as stipulated in clause 2 Article 38 of this Circular.
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Accordingly, if a household business has been issued a tax identification number before July 1, 2025, but the tax registration information of the household business representative does not match the information of the individual stored in the National Database on Population or is incomplete, the tax authority will update the tax identification number status of the household business to status 10 "Tax identification number awaiting personal identification number information update". The household business must perform the procedure to change the tax registration information with the tax authority to ensure the information matches the National Database on Population before using the personal identification number instead of the tax identification number.
From July 1, 2025, which identification number should household businesses use when paying taxes in Vietnam? (Image from the Internet)
What does the initial tax registration application for household businesses using personal identification numbers instead of tax identification numbers include?
Pursuant to Article 22 of Circular 86/2024/TT-BTC regulating the initial tax registration application for household businesses using personal identification numbers instead of tax identification numbers as follows:
(1) For household businesses tax registration concurrently with business registration through the interlinked one-door mechanism, the household business registration application follows the Government of Vietnam’s regulations on household businesses.
(2) household businesses tax registration directly with the tax authority:
- In the case of household businesses stipulated at point i clause 2 Article 4 of Circular 86/2024/TT-BTC, the tax registration application includes: tax registration form model number 03-ĐK-TCT issued with Circular 86/2024/TT-BTC, or tax declaration dossier in accordance with the tax management law.
- For households, individuals (except tax registrations prescribed at points a, b, c clause 1 Article 22 of Circular 86/2024/TT-BTC) tax registration through the tax declaration dossier includes: The tax declaration dossier in accordance with the tax management law. In case the tax authority and the state management agency have implemented integration, the tax authority will base on the Information Transfer Form from the state management agency if there is no tax declaration dossier.
