What is the latest deadline for submitting tax declaration dossiers for household businesses paying fixed tax in Vietnam?

What is the latest deadline for submitting tax declaration dossiers for household businesses paying fixed tax in Vietnam?

According to Clause 3, Article 13 of Circular 40/2021/TT-BTC, the deadline for submitting tax declaration dossiers for individuals doing business and paying fixed tax is specifically as follows:

[1] The latest deadline for submitting the tax declaration dossier by individuals in business paying fixed tax is December 15 of the year preceding the tax assessment year.

[2] In cases where individuals are newly entering business, convert to declaration methods, or change business lines, or expand business scale within the year, the latest deadline for submitting tax declaration dossiers is the 10th day from the starting business date, or changing the tax computation method, or changing the business line, or changing business scale.

[3] The deadline for submitting tax declaration dossiers for individuals in business who use invoices issued by the tax authorities and for retail on an incidence basis is the 10th day from the day revenue arises requiring the use of invoices.

Thus, according to the above regulations, the deadline for submitting tax declaration dossiers for household businesses paying fixed tax at the latest is December 15 of the year preceding the tax assessment year.

What is the latest deadline for submitting tax declaration dossiers for household businesses paying fixed tax in Vietnam? (Image from the Internet)

What is a household business paying fixed tax in Vietnam?

Individual businesses paying fixed tax are stipulated in Clause 8, Article 3 of Circular 40/2021/TT-BTC as follows:

Interpretation of Terms

In addition to the terms explained in the Tax Management Law, tax laws, and related decrees, several other terms in this Circular shall be understood as follows:

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7. “Presumptive method” is a tax computation method based on a ratio on presumed revenue determined by the tax authority to compute the presumptive tax level as stipulated in Article 51 of the Tax Management Law.

8. “household business, individual business paying fixed tax” refers to household businesses, individuals who do not implement or fully implement accounting, invoices, documents policies, except for household businesses, individuals subjected to taxation by declaration method and individuals subjected to taxation on an incident basis.

9. “Presumptive tax level” is the tax and other payments required to be paid to the state budget by household businesses, individuals paying fixed tax as determined by the tax authority according to the guidelines in Article 51 of the Tax Management Law.

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The presumptive method is a tax calculation method based on a ratio on presumed revenue as determined by the tax authority to compute the presumptive tax level.

According to the above regulations, household businesses paying fixed tax are those that do not implement or fully implement accounting, invoices, documents policies.

*Note: Except for household businesses, individuals subjected to taxation by declaration method and individuals subjected to taxation on an incident basis.

Does a household business paying fixed tax need to present individual invoices to the tax authority in Vietnam?

The use of individual invoices by individual businesses is regulated in Clause 2, Article 7 of Circular 40/2021/TT-BTC as follows:

Tax computation methods for household businesses and individuals paying fixed tax

1. The presumptive method is applied to household businesses, individuals not subjected to taxation by declaration method and not subjected to taxation on an incident basis as guided in Article 5, Article 6 of this Circular.

2. household businesses, individuals paying fixed tax (Presumptive households) are not required to implement accounting policies. Presumptive households using individual invoices must store and present to the tax authority the invoices, documents, contracts, and dossiers proving lawful goods and services when applying for issuance and retail invoices on an incident basis. In particular, presumptive households conducting business at border markets, border-gate markets, and markets in border-gate economic zones within Vietnam's territory must implement the storage of invoices, documents, contracts, dossiers proving lawful goods and present them when requested by competent state management agencies.

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Thus, according to the regulation, household businesses paying fixed tax, when using individual invoices, must store and present to the tax authorities the invoices, documents, contracts, and dossiers proving lawful goods and services when applying for issuance and retail invoices on an incidence basis.

Specifically, household businesses conducting business at border markets, border-gate markets, and markets within border-gate economic zones in Vietnam's territory must implement the storage of invoices, documents, contracts, and dossiers proving lawful goods and present them when requested by competent state management agencies.