Vietnam: How many types of bookkeeping accounts are there?

Vietnam: How many types of bookkeeping accounts are there?

According to Clause 2 and Clause 3, Article 24 of Circular 111/2021/TT-BTC, the types of bookkeeping accounts are as follows:

- Type 1 Account - Receivables: These accounts reflect the tax receivable, received, yet-to-be-received, and debt provision by tax authorities at all levels for taxpayers or organizations entrusted by tax authorities to collect.

- Type 3 Account - Payables and Payments: These accounts reflect the tax amounts that tax authorities must refund, have refunded, or still need to refund to taxpayers or organizations entrusted by tax authorities to collect; payment status with the state budget regarding tax collection and refund by tax authorities.

- Type 7 Account - Income: These accounts reflect the tax revenue collected by tax authorities at all levels.

- Type 8 Account - Refunds, Exemptions, Reductions, Debt Write-offs: These accounts reflect the VAT, special consumption tax refunds according to tax laws; tax exemptions, reductions, and debt write-offs for taxpayers as decided by the tax authorities or competent state agencies.

Specifically, the catalog of the accounting account system:

Vietnam: How many types of bookkeeping accounts are there? (Image from the Internet)

What is the structure of bookkeeping accounts in Vietnam?

The structure of bookkeeping accounts is regulated in Clause 2, Article 17 of Circular 111/2021/TT-BTC as follows:

Tax Accounting Accounts

...

2. Tax accounting accounts are regulated with a fixed and unified structure including 06 independent code segments, each containing values corresponding to detailed accounting of economic transactions arising according to tax administration and state budget management requirements.

The name of each code segment is designated as follows: Collection agency code, Administrative area code, Program code, Sub-item code, Reserve code, Accounting account code. The number of characters for the collection agency code, administrative area code, program code, sub-item code is consistent with the provisions of Article 28 of Circular 77/2017/TT-BTC dated July 28, 2017 guiding public financial and state treasury operations.

3. The specific values of the code segments in the tax accounting account are assigned once and uniquely in the Tax Accounting Subsystem (not re-using values from the past), except in special cases as regulated by competent state agencies. Each value is uniquely established throughout the entire operational period of the Tax Accounting Subsystem.

The specific value of each code segment is stipulated in Articles 19, 20, 21, 22, 23, and 24 of this Circular.

4. Principles for determining and accounting tax accounts

a) Based on the method of determining the input data value of the Tax Accounting Subsystem stipulated in Appendix I promulgated with this Circular, the taxpayer obligation management subsystem automatically supplements information for the corresponding code segments with each tax management operation as defined in Clause 1, Article 13 of this Circular.

b) For each determined code segment, the accounting is done at the most detailed level. The system will automatically supplement information for the corresponding aggregated codes. The balance of the account by aggregated code is the total balance of the accounts by detailed code.

Tax accounting accounts are fixedly regulated about structure and unified, including 06 independent code segments, each containing values corresponding to detailed accounting of economic transactions arising according to tax management and state budget management requirements.

The number of characters for the collection agency code, administrative area code, program code, sub-item code is consistent with the provisions of Article 28 of Circular 77/2017/TT-BTC guiding public financial and state treasury operations.

What are the requirements for bookkeeping accounts in Vietnam?

The requirements for bookkeeping accounts are stipulated in Article 18 of Circular 111/2021/TT-BTC as follows:

(1) The content of the account must be designed to comply with the State Budget Law 2015, Accounting Law 2015, Tax Administration Law 2019, organize the tax accounting system and information organization of tax authorities at all levels.

(2) Fully reflect all economic and financial activities related to tax management and settlement with the state budget of tax authorities at all levels.

(3) Facilitation for the collection, processing, exploitation, and provision of information using information technology applications, ensuring the ability to automatically exchange, transmit, and receive data on state budget management in the Finance sector between the Tax Accounting Subsystem and other state budget management systems of the Ministry of Finance, State Treasury.