How to convert TIN to personal identification number for individual/household businesses in Vietnam from July 1, 2025?

How to convert TIN to personal identification number for individual/household businesses in Vietnam from July 1, 2025?

According to Article 39 of Circular 86/2024/TT-BTC (effective from February 6, 2025) regarding transitional provisions, the conversion of TIN to personal identification number for individual/household businesses is carried out as follows:

- In the case of business households, family households, or individuals that are required to use personal identification number instead of TIN as stipulated in Clause 5, Article 5 of Circular 86/2024/TT-BTC, who have been issued TIN before July 1, 2025, and the taxpayer registration information of the representative of the business household, family household, or individual matches the information of the individual stored in the National Database on Population, these business households, family households, or individuals can use personal identification number instead of TIN starting July 1, 2025. This includes the adjustment and supplementation of tax obligations arising under the previously issued tax identification number. Furthermore, the tax authority manages all data of the business household, family household, individual, and dependent registration data using the personal identification number.

- If the taxpayer registration information of the representative of the business household, family household, or individual does not match or is incomplete in comparison with the individual data stored in the National Database on Population, the tax authority updates the tax identification number status of the business household, family household, or individual to status 10 "Tax ID pending update of personal identification information." Taxpayers must follow the procedure to change taxpayer registration information with the tax authority as stipulated in Clauses 1 and 4 of Article 25 of Circular 86/2024/TT-BTC 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 Circular 86/2024/TT-BTC.

- If an individual has been issued more than one tax identification number, the taxpayer must update personal identification number information for the issued TIN so that the tax authority can integrate these into the personal identification number, consolidating the taxpayer's tax data according to the personal identification number.

When the tax identification number is integrated into the personal identification number, invoices, documents, tax records, and other legal documents that use the individual's tax identification number will continue to be used for tax administrative procedures, confirming tax obligation fulfillment without needing to change tax identification information on these documents to the personal identification number.

- Business households, family households, and individuals can check whether the taxpayer registration information has been verified to match or not match the National Database on Population through the General Department of Taxation’s electronic portal at https://www.gdt.gov.vn or on the General Department of Taxation's electronic tax page at thuedientu.gdt.gov.vn, or within the electronic tax transaction account on applications such as icanhan or eTaxMobile (if the individual has been issued an electronic tax transaction account with the tax authority). If information errors occur, the taxpayer must contact the directly managing tax authority or relevant Tax Department or Regional Tax Department where the individual resides to update accurate information into the taxpayer registration application system.

How to convert TIN to personal identification number for individual/household businesses in Vietnam from July 1, 2025? (Image from the Internet)

Which individual/household businesses must perform taxpayer registration directly with the tax authority in Vietnam from February 6, 2025?

In accordance with Clause 2, Article 4 of Circular 86/2024/TT-BTC (effective from February 6, 2025), individuals who must perform taxpayer registration directly with the tax authority include:

- Foreign individuals using humanitarian aid or non-refundable aid from abroad to purchase goods or services with VAT in Vietnam for non-refundable aid or humanitarian aid.

- ODA project owners eligible for VAT refunds.

- Foreign individuals independently practicing business in Vietnam in compliance with Vietnamese law, with income arising in Vietnam or with arising tax obligations in Vietnam.

- Foreign individuals not residing in Vietnam conducting e-commerce business, digital platform-based business, and other services with Vietnamese organizations and individuals.

- Individuals responsible for withholding and paying tax on behalf of other taxpayers must declare and identify tax obligations separately from the obligations of the taxpayer as stipulated by tax management law.

- Family households or individuals engaged in the production, business of goods, and services as prescribed by law but not required to register business households through business registration authorities per the regulations of the Government of Vietnam on business households; business individuals from countries sharing land borders with Vietnam conducting trade activities at border markets, border gate markets, or markets within border gate economic zones.

- Individuals with income subject to personal income tax (excluding business individuals).

- Individuals classified as dependents under personal income tax law.

- Individuals assigned by the tax authority to collect taxes.

- Other family households and individuals with obligations to the state budget.

What are regulations on use of TIN in Vietnam?

Pursuant to Article 35 of the Law on Tax Administration 2019 on the use of TIN, it is regulated as follows:

- Taxpayers must record their tax identification number on invoices, documents, and materials when conducting business transactions; opening deposit accounts at commercial banks and other credit institutions; declaring tax, paying tax, getting tax exemption, reductions, refunds or non-collection; registering customs declarations, and carrying out other tax transactions for all obligations to the state budget, even if the taxpayer conducts business in multiple regions.

- Taxpayers must provide their tax identification number to relevant agencies or organizations or record it on their files when pursuing administrative procedures through the one-stop-shop mechanism with the tax authority.

- Tax authorities, the State Treasury, commercial banks, and organizations authorized by the tax authority to collect taxes use the taxpayer's tax identification number in tax management and collect taxes into the state budget.

- Commercial banks and other credit institutions must record the tax identification number in account opening records and transaction documents via the taxpayer’s account.

- Other organizations and individuals participating in tax management use the taxpayer's issued tax identification number when providing information related to determining tax obligations.

- When the Vietnamese party makes payments to organizations or individuals engaging in cross-border business through digital intermediary platforms not located in Vietnam, the assigned tax identification number must be used for withholding and substitute payment.