How to determine revenue and rates for fixed tax in Vietnam?

How to determine revenue and rates for fixed tax in Vietnam?

Pursuant to Point a, Clause 4, Article 13 of Circular 40/2021/TT-BTC regulating tax administration for household businesses as follows:

Tax administration for household businesses

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4. Determining Revenue and rates for fixed tax

a) Determining Revenue and rates for fixed tax

a.1) The revenue and the rates for fixed tax is calculated according to the calendar year or month in cases of seasonal business and stability within a year.

a.2) Household businesses self-determine the revenue for fixed tax calculation in the year on the Tax Declaration Form No. 01/CNKD issued with this Circular. In cases where the household business cannot determine the fixed revenue, fails to submit tax declaration dossiers, or the revenue for fixed tax calculation is not consistent with actual business, the tax authority shall determine the revenue and the rates for fixed tax in accordance with the provisions of Article 51 of the Tax Administration Law.

a.3) Based on the tax declaration dossiers of household businesses and the tax authority's databases to openly gather opinions, consult the tax advisory council's opinions, serving as a basis for the Tax Department to direct and review the establishment of the tax register at each Tax Sub-department.

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Therefore, the determination of revenue and rates for fixed tax is as follows:

- The revenue and rates for fixed tax are calculated according to the calendar year or month for cases of seasonal business and stability within a year.

- Household businesses self-determine the revenue for fixed tax calculation in the year on the Tax Declaration Form No. 01/CNKD issued with Circular 40/2021/TT-BTC. In cases where the household business cannot determine the fixed revenue, fails to submit tax declaration dossiers, or the revenue for fixed tax calculation is not consistent with actual business, the tax authority shall determine the revenue and the rates for fixed tax according to the provisions of Article 51 of the 2019 Tax Administration Law.

- Based on the tax declaration dossiers of household businesses and the tax authority's databases to openly gather opinions, consult the tax advisory council's opinions, serving as a basis for the Tax Department to direct and review the establishment of the tax register at each Tax Sub-department.

How to determine revenue and rates for fixed tax for household businesses? (Image from the Internet)

Vietnam: What does the fixed tax declaration dossier for fixed tax payers include?

The components in the fixed tax declaration dossier for fixed tax payers will be implemented according to the provisions at Clause 2, Article 13 of Circular 40/2021/TT-BTC, specifically:

- From November 20 to December 5 each year, the tax authority distributes the tax declaration form for the following year to all household businesses.

- The tax declaration dossier for household businesses according to the provisions in point 8.1, Appendix I - List of tax declaration dossiers issued with Decree 126/2020/ND-CP is the tax declaration for household businesses and individual businesses according to Form No. 01/CNKD issued with Circular 40/2021/TT-BTC.

- In cases where household businesses use invoices issued by the tax authority, sold at retail per incidence, when declaring tax on revenue from individual invoices, they declare tax per incidence and concurrently use the tax declaration for household businesses and individual businesses as per Form No. 01/CNKD issued with Circular 40/2021/TT-BTC, and also present and submit with the tax declaration dossier the following documents:

+ Copies of economic contracts for supplying goods, services in the same business category as the household business activity;

+ Copies of acceptance records, contract liquidation documents;

+ Copies of documents proving the origin of goods and services such as:

++ List of agricultural products purchased domestically if they involve domestic agricultural products;
++ List of goods purchased and exchanged by border residents if they are imported goods by border residents;
++ Invoice from the seller if they are imported goods purchased from domestic business organizations or individuals; related documents to demonstrate if they are self-produced or supplied goods;

The tax authority has the right to request the presentation of originals for comparison and verification of the accuracy of copies against the originals.

What is the deadline for submitting fixed tax declaration dossiers in Vietnam?

Based on Clause 3, Article 13 of Circular 40/2021/TT-BTC, the deadline for submitting tax declaration dossiers for household businesses is stipulated at point c, Clause 2, Clause 3, Article 44 of the 2019 Tax Administration Law. Specifically:

- The deadline for submitting tax declaration dossiers for household businesses is no later than December 15 of the year preceding the tax calculation year.

- In cases of new business establishment (including the conversion to the fixed tax method), change in business method, change in business sector, or change in business scale within the year, the deadline for submitting tax declaration dossiers for household businesses is no later than the 10th day from the start of business, method change, sector change, or scale change.

- The deadline for submitting tax declaration dossiers for cases where household businesses use invoices issued by the tax authority, sold at retail per incidence, is no later than the 10th day from the date of revenue generation requiring invoice usage.