What is the scope of application of the Circular 111/2021/TT-BTC providing guidance on domestic tax accounting in Vietnam?

What is the scope of application of the Circular 111/2021/TT-BTC providing guidance on domestic tax accounting in Vietnam?

Firstly, Article 1 of Circular 111/2021/TT-BTC clearly states that this Circular adjusts guidance on accounting for tax and other revenues belonging to the state budget managed and collected by tax authorities according to the provisions of the Law on Tax Administration and guiding documents for implementation (hereinafter referred to as tax accounting) including:

- General provisions on tax accounting;

- Application of information technology in tax accounting work;

- Collection of input information for tax accounting, tax accounting vouchers;

- Tax accounting accounts;

- Tax accounting books;

- Tax accounting reports;

- Organization of tax accounting work.

- Other contents related to tax accounting work not specified in detail in this Circular are implemented following the general provisions of accounting law.

Moreover, based on Article 2 of Circular 111/2021/TT-BTC, the provisions of this Circular apply to Tax Authorities: General Department of Taxation, Tax Departments, Regional Tax Sub-Departments, Tax Sub-Departments and other state agencies, organizations, and individuals related to tax accounting mentioned in this Circular.

What is the scope of application of the Circular 111/2021/TT-BTC providing guidance on domestic tax accounting in Vietnam? (Image from Internet)

What is the scope of tax accounting work in Vietnam?

According to Clause 1, Article 5 of Circular 111/2021/TT-BTC, the scope of tax accounting work is defined as follows:

Tax accounting work is one of the tax management functions of the tax authorities, using the results of other tax management operations that have been completed to carry out tax accounting work according to the contents specified in Article 6 of Circular 111/2021/TT-BTC.

What is domestic tax accounting work in Vietnam?

Based on the provisions of Article 6 of Circular 111/2021/TT-BTC, domestic tax accounting work is explained as one of the tax management functions of tax authorities at all levels, carried out continuously and systematically according to tax management operational procedures on the Tax Management Application System, which includes the Tax Accounting Subsystem.

What are the tasks of the domestic tax accounting work in Vietnam?

According to Clause 2, Article 5 of Circular 111/2021/TT-BTC, domestic tax accounting work must ensure the performance of the following tasks:

- Collect input information for tax accounting, and prepare tax accounting vouchers according to Section 1, Chapter II of Circular 111/2021/TT-BTC to perform entries in the tax accounting books.

- Reconcile and check the recorded data to ensure it matches the input information originating from the tax management operation dossiers related to tax accounting work.

- In case errors are detected during the accounting of tax records, the cause must be determined and handled according to the provisions in Article 14 and Article 16 of Circular 111/2021/TT-BTC.

- Store, manage, and provide tax accounting information and documents according to the provisions in Article 9 of Circular 111/2021/TT-BTC.

- Provide truthful, complete, and prompt tax accounting information and documents as per the provisions of the law on accounting and tax management.

- The tasks of tax accounting work are carried out automatically by the Tax Accounting Subsystem or performed by officials handling tax accounting according to their functions, duties, and authority on the Tax Accounting Subsystem.

Additionally, tax management functional departments at tax authorities at all levels, when carrying out tax management operation activities, must ensure the performance of the following tasks according to Clause 3, Article 5 of Circular 111/2021/TT-BTC, including:

- Processing tax management operation dossiers according to the regulations in tax management operation procedures issued by the Director General of the General Department of Taxation, ensuring complete, accurate, and timely information.

- Control the processing of data on tax management operation dossiers within the Tax Management Application System of the Tax sector as defined by the Regulations on data processing responsibility in the Tax Management Application System of the Tax sector issued by the Director General of the General Department of Taxation.

- Be responsible for the completeness, accuracy, and promptness of the information provided for tax accounting input information according to the provisions in Article 12 of Circular 111/2021/TT-BTC.

- Compare and review data on tax management operation dossiers and tax management information with taxpayers to ensure it is complete, accurate, and prompt.

- In case errors or adjustments to tax management operation dossiers affecting tax accounting information are detected, they must be processed and adjusted promptly according to regulations.