Shall household businesses notify the tax authority in case of resumption of business ahead of notified schedule in Vietnam?

Shall household businesses notify the tax authority in case of resumption of business ahead of notified schedule in Vietnam?

Pursuant to Clause 2, Article 91 of Decree 01/2021/ND-CP which stipulates as follows:

Suspension of business operations, resumption of business ahead of notified schedule of household businesses

1. In the case of suspending business operations for 30 days or more, the household business must notify the district-level business registration authority where the business is registered and the tax authority directly managing them.

2. In the case of a household business suspending business operations and resuming business before the notified deadline, the household business shall send a written notice to the district-level business registration authority where the household business is registered at least 3 working days before suspending business or resuming business before the notified deadline. Accompanying the notice must be a copy of the meeting minutes of household members regarding the registration of business suspension or resumption of business ahead of notified schedule in case the household members register the business as a household business. Upon receiving the notice, the district-level business registration authority shall issue a receipt to the household business. Within 3 working days from the date of receiving a complete file, the district-level business registration authority shall issue a confirmation on the household business's registration of business suspension or a confirmation on the household business's registration of resumption of business ahead of notified schedule.

Therefore, according to the regulations, if a household business suspends operations and resumes business before the notified deadline, the household business must send a written notice to the district-level business registration authority where the business is registered at least 3 working days before, so there’s no requirement to notify the tax authority.

Shall household businesses notify the tax authority in case of resumption of business ahead of notified schedule in Vietnam? (Image from Internet)

Vietnam: How long does a household business must suspend operations before its certificate can be revoked?

Pursuant to Point b, Clause 1, Article 93 of Decree 01/2021/ND-CP which stipulates as follows:

Revocation of certificate of household business registration

1. A household business will have its certificate revoked in the following cases:

a) The content declared in the household business registration file is fraudulent;

b) The business suspends operations for over 6 consecutive months without notifying the district-level business registration authority where registered and the tax authority;

c) The business engages in prohibited professions or trades;

d) The household business is established by individuals not entitled to establish a household business;

đ) The household business does not submit reports as stipulated in Clause 6, Article 16 of this Decree to the district-level business registration authority within 3 months from the deadline for submitting reports or upon a written request;

e) Other cases as decided by the court or at the request of a competent authority as stipulated by law.

2. In the case that the declared content in the household business registration file is fraudulent, the district-level business registration authority shall issue a notice of the violation to the household business and decide to revoke the household business registration certificate.

In the case where the registration file to alter the household business registration information is fraudulent, the district-level business registration authority shall issue a notice of the violation to the household business and annul the alteration of the household business registration information made based on fraudulent information, and reissue a household business registration certificate based on the most recent valid file, concurrently notifying the competent authority for consideration and handling as stipulated by law. The district-level business registration authority requires the household business to re-submit the file to be considered for issuance of a new household business registration certificate. The household business may aggregate the legitimate changes from the subsequent alteration registrations into one file for a new registration alteration to be issued once.

Therefore, one of the cases for revocation of the certificate is if the business suspends operations for over 6 consecutive months without notifying the district-level business registration authority where registered and the tax authority.

How to handle certificate of household business registration issued without a satisfactory application or without following procedures in Vietnam?

Pursuant to Clause 2, Article 94 of Decree 01/2021/ND-CP, stipulating the re-issuance of certificate of household business registration, the handling of cases where certificate of household business registration are issued without a satisfactory application or without following procedures is as follows:

- In case the household business registration certificate is issued incorrectly according to the stipulated process and procedure, the district-level business registration authority sends a notice to the household business and reissues the certificate conformable to the stipulated process and procedure;

- In case the registration to establish a household business is issued incorrectly according to the stipulated file, the district-level business registration authority notifies that the household business registration certificate issued incorrectly according to the stipulated file is null and instructs the household business to complete and submit a valid file according to the stipulated regulations within 30 days from the date of the notice to be considered for a household business registration certificate. The household business may combine the legitimate changes from subsequent alteration registrations into one file to be issued a new registration alteration once;

- In case the change registration to alter the household business registration information is issued incorrectly according to the stipulated file, the district-level business registration authority notifies that the household business registration certificate issued on the basis of a file not in conformity with the stipulated regulations is null and concurrently issues a household business registration certificate based on the most recent valid file before that. The district-level business registration authority sends a notice requesting the household business to complete and submit a valid file according to the stipulated regulations within 30 days from the date of the notice to be considered for a household business registration certificate. The household business may aggregate the legitimate changes from subsequent alteration registrations into one file for a new registration alteration to be issued once.