What are the obligations to be fulfilled by the household business prior to TIN deactivation in Vietnam?

When does a household business have its TIN deactivated in Vietnam?

Taxpayers who register directly with tax authorities will have their TINs deactivated (or more precisely, the TINs will be deactivated) in cases stipulated in Clause 2, Article 39 of the 2019 Law on Tax Administration as follows:

Deactivation of TIN Validity

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2. Taxpayers who register directly with tax authorities will have their TINs deactivated in the following cases:

a) Deactivation of business activities, no longer incurring tax obligations for non-business organizations;

b) Revocation of the business registration certificate or equivalent license;

c) Division, merger, or consolidation;

d) Notification by tax authorities that the taxpayer is not operating at the registered address;

dd) Death, disappearance, or loss of civil act capacity as stipulated by law;

e) Foreign contractors upon completion of contracts;

g) Contractors or investors in petroleum contracts upon contract completion or transfer of entire rights in the contract.

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Thus, a household business 's TIN will be deactivated in the following cases:

- Deactivation of business activities, no longer incurring tax obligations for non-business organizations;

- Revocation of the business registration certificate or equivalent license.

What are rules for deactivation of TINs of household businesses in Vietnam?

The deactivation of a household business 's TIN must adhere to the principles stipulated in Clause 3, Article 39 of the 2019 Law on Tax Administration as follows:

- The TIN cannot be used in economic transactions from the date the tax authorities announce the deactivation of its validity;- The deactivated TIN cannot be reused, except in cases stipulated in Article 40 of the 2019 Law on Tax Administration, specifically:

Restoration of TIN

1. Taxpayers registering for enterprises, cooperatives, or business operations are simultaneously restored the TIN if their legal status is restored according to regulations on enterprise, cooperative, and business registration.

2. Taxpayers who register directly with tax authorities can submit a request to restore their TIN to the directly managing tax authority in the following cases:

a) Written cancelation by a competent authority of the decision to revoke the business registration certificate or equivalent license;

b) Intention to continue business activities after submitting the TIN deactivation dossier to the tax authority, but the tax authority has not yet issued a notice of TIN deactivation;

c) Notification by tax authorities that the taxpayer is not operating at the registered address, but the business registration certificate has not been revoked and the TIN has not yet been deactivated.

3. The TIN can be used again in economic transactions from the effective date of the legal status restoration decision by the business registration authority or the date the tax authority announces the restoration of the TIN.

4. The dossier for requesting TIN restoration includes:

a) A request for TIN restoration;

b) Other relevant documents.

- When the TIN of a household business is deactivated, the TIN of the household business's representative is not deactivated and can be used to fulfill other tax obligations of that individual;

- When enterprises, economic organizations, other organizations, and individuals deactivate their TINs, they must also deactivate the substitute TIN.

What are the obligations to be fulfilled by the household business prior to TIN deactivation in Vietnam? (Image from the Internet)

What are the obligations to be fulfilled by the household business prior to TIN deactivation in Vietnam?

According to Clauses 2 and 3, Article 15 of Circular 105/2020/TT-BTC, the obligations that taxpayer household business s must fulfill prior to TIN deactivations are identified as follows:

[1] For household business s as specified in Point i, Clause 2, Article 4 of Circular 105/2020/TT-BTC:

- Submit a report on the use of invoices as stipulated by invoice regulations if invoices are used;- Complete tax payment obligations and handle excess tax payments according to Articles 60, 67, 69, 70, 71 of the 2019 Law on Tax Administration with tax authorities managing the household business and individual business taxpayers under the fixed tax method;

- Complete tax declaration, tax payment, and handling of excess tax payments, and uncredited VAT (if any) according to Articles 43, 44, 47, 60, 67, 68, 70, 71 of the 2019 Law on Tax Administration with tax authorities managing the household business taxpayers under the declaration method.

[2] For household business s transitioning to small and medium enterprises as stipulated by the 2017 Law on Supporting Small and Medium Enterprises, the household business must complete tax obligations with the directly managing tax authority or send a written commitment to the tax authority that the transitioning small and medium enterprise will inherit all tax obligations of the household business according to the law on supporting small and medium enterprises.