What are the contents of theType-1 account in Vietnam?

What are the contents of theType-1 account in Vietnam?

Pursuant to Article 24 of Circular 111/2021/TT-BTC stipulated as follows:

Accounting Account Code

1. The accounting account code is used to record, reflect, and account for the receivables, received, remaining receivables, to be refunded, refunded, remaining to be refunded, exempted, reduced, debt suspension, debt write-off for tax management transactions of the tax authority according to the subject of tax accounting stipulated in Article 4 of this Circular.

2. Classification of accounting accounts

a) Type 1 Account - Receivables: These are accounts that reflect the tax to be collected, collected, remain to be collected, debt suspension by tax authorities at all levels to taxpayers or organizations entrusted by tax authorities to collect.

b) Type 3 Account - Payment and Payable: These are accounts that reflect the tax that must be refunded, refunded, remain to be refunded to taxpayers or organizations entrusted by tax authorities to collect; the payment situation with the state budget regarding the revenues and refunds of the tax authority.

c) Type 7 Account - Revenue: These are accounts that reflect the tax revenue of tax authorities at all levels.

d) Type 8 Account - Refund, Exemption, Reduction, Debt Write-off: These are accounts that reflect the refund of value-added tax (VAT), special consumption tax (SCT) according to tax law; the exempted, reduced, and written-off tax for taxpayers according to the decision of the tax authority or competent state agency.

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Thus, the Type-1 Account - Receivables: These are accounts that reflect the tax to be collected, collected, remain to be collected, debt suspension by tax authorities at all levels to taxpayers or organizations entrusted by tax authorities to collect.

What are the contents of theType-1 account in Vietnam? (Image from Internet)

What are regulations on the classification of tax accounts in Vietnam?

Based on clauses 2 and 3 of Article 24 of Circular 111/2021/TT-BTC, tax accounts in Vietnam are classified into the following types:

- Type 1 Account - Receivables: These are accounts that reflect the tax to be collected, collected, remain to be collected, debt suspension by tax authorities at all levels to taxpayers or organizations entrusted by tax authorities to collect.

- Type 3 Account - Payment and Payable: These are accounts that reflect the tax that must be refunded, refunded, remain to be refunded to taxpayers or organizations entrusted by tax authorities to collect; the payment situation with the state budget regarding the revenues and refunds of the tax authority.

- Type 7 Account - Revenue: These are accounts that reflect the tax revenue of tax authorities at all levels.

- Type 8 Account - Refund, Exemption, Reduction, Debt Write-off: These are accounts that reflect the refund of value-added tax, special consumption tax according to tax law; the exempted, reduced, and written-off tax for taxpayers according to the decision of the tax authority or competent state agency.

Detailed list of the accounting account system is as follows:

What are the requirements for tax accounts in Vietnam?

Pursuant to Article 18 of Circular 111/2021/TT-BTC, tax accounts in Vietnam must meet the following requirements:

- The account content must be designed in conformity with the State Budget Law 2015, Accounting Law 2015, Tax Administration Law 2019, organization of the tax accounting system, and organization of information for tax authorities at all levels.

- Fully reflect economic and financial activities related to tax management transactions and payment with the state budget of tax authorities at all levels.

- Facilitate the collection, processing, exploitation, and provision of information by the application of information technology, ensuring the ability to automatically exchange and transfer data on state budget revenue management within the Finance sector between the Tax Accounting Subsystem and other information systems on state budget management of the Ministry of Finance, State Treasury.