Where to submit VAT and PIT declaration dossiers for individual businesses under separate declarations in Vietnam?

Where to submit VAT and PIT declaration dossiers for individual businesses under separate declarations in Vietnam?

According to Clause 2, Article 12 of Circular 40/2021/TT-BTC, the place for submitting tax declaration dossiers for individual businesses who pay tax under separate declarations is stipulated in Clause 1, Article 45 of the Law on Tax Administration 2019. To be specific:

- In the case of mobile business operations, tax declaration dossiers are submitted to the local Tax Department directly managing the location where the individual conducts business activities.

- In the case of individuals earning income from digital content products and services, tax declaration dossiers are submitted to the local Tax Department directly managing the individual's place of residence (permanent or temporary residence).

- In the case of individuals earning income from transferring Vietnam national internet domain names ".vn", tax declaration dossiers are submitted to the Tax Department where the individual resides. If the transferor is a non-resident individual, tax declaration dossiers are submitted to the tax authority directly managing the organization that manages the Vietnam national internet domain names ".vn".

- For individuals who are private construction contractors, tax declaration dossiers are submitted to the local Tax Department directly managing the location where the individual conducts construction activities.

Where to submit VAT and PIT declaration dossiers for individual businesses under separate declarations? (Image from the Internet)

What is the basis for calculating VAT and PIT for household businesses and individual businesses in Vietnam?

According to Article 10 of Circular 40/2021/TT-BTC, the basis for calculating VAT and PIT for household businesses and individual businesses is the taxable revenue and the tax rates applied to the revenue. Specifically:

- Taxable Revenue

The taxable revenue for VAT and PIT for household businesses and individual businesses includes tax (if applicable) from the total sales, processing fees, commissions, and service provision arising during the tax period. This encompasses sales bonuses, support for achieving sales targets, promotions, commercial discounts, payment discounts, monetary or non-monetary support amounts, subsidies, surcharges, extra charges, fees entitled, compensations for contract violations, and other compensations (which are only included in taxable PIT revenue); as well as other revenues that household businesses and individual businesses are entitled to, irrespective of whether they have received the money or not.

- Tax Rate Applied on Revenue

+ The tax rate applied on the revenue includes VAT and PIT rates specifically applied to each field, industry according to Appendix I issued together with Circular 40/2021/TT-BTC.

+ In cases where household businesses and individual businesses operate in multiple fields or industries, they must declare and calculate taxes according to the tax rates applied to each field or industry. If the household businesses and individual businesses are unable to determine the taxable revenue of each field or industry, or the determination does not match the actual business operations, the tax authority will determine the taxable revenue for each field or industry according to legal provisions on tax administration.

- Determination of Tax Payable

VAT Payable = Taxable VAT Revenue x VAT Rate

PIT Payable = Taxable PIT Revenue x PIT Rate

Where:

+ Taxable VAT Revenue and Taxable PIT Revenue are guided at Clause 1, Article 10 of Circular 40/2021/TT-BTC.

+ VAT Rate and PIT Rate are guided in Appendix 1 issued together with Circular 40/2021/TT-BTC.

What is the extension of the tax declaration dossiers submission deadline in Vietnam?

According to the provisions at Article 46 of the Law on Tax Administration 2019 regarding the extension of tax declaration dossiers submission deadlines:

Extension of tax declaration dossiers Submission Deadlines

1. Taxpayers who are unable to submit tax declaration dossiers on time due to natural disasters, catastrophic events, epidemics, fires, or unexpected accidents, may have their tax declaration dossiers submission deadline extended by the head of the tax authority directly managing them.

2. An extension period cannot exceed 30 days for the submission of monthly, quarterly, yearly tax declaration dossiers, or tax declaration dossiers under separate declarations; and 60 days for the submission of final tax settlement returns, calculated from the deadline for tax declaration dossiers submission.

3. Taxpayers must submit a written request for extension to the tax authority before the tax declaration dossiers submission deadline, stating the reasons for the extension request, accompanied by confirmation from the commune-level People's Committee or the commune police where the extension condition arises as stipulated in Clause 1 of this Article.

4. Within 3 working days from the day of receiving the written request for an extension, the tax authority must respond in writing to the taxpayer whether the extension of the tax declaration dossiers submission deadline is approved or denied.

Therefore, taxpayers are granted an extension of the tax declaration dossiers submission deadline if they are unable to submit tax declaration dossiers on time due to natural disasters, catastrophic events, epidemics, fires, or unexpected accidents, with the direct management tax authority head granting the extension.

Note: The extension period cannot exceed 30 days for submitting monthly, quarterly, yearly tax declaration dossiers, or tax declaration dossiers under separate declarations; and 60 days for submitting final tax settlement returns from the tax declaration dossiers submission deadline.