How does the tax authority record and store information about the tax amounts that taxpayers have paid and will pay?
Which records does the tax authority make and store the collected and due tax payments of taxpayers?
Pursuant to Article 25 of Circular 111/2021/TT-BTC stipulates as follows:
“Article 25. Tax accounting books
1. Tax accounting books are a form of data established within the Tax Accounting Subsystem.
2. Tax accounting books are used to record, reflect, and systematically store the entire amount of tax due, tax collected, tax to be collected, tax to be refunded, tax refunded, tax to be refunded, tax exempted, tax reduced, debt scheduling, and debt cancellation during the tax management activities of tax authorities at all levels.
3. Information on the tax accounting books must ensure complete, accurate, prompt, honest, continuous, and systematic reflection of all tax management activities of the tax authority. The tax accounting department of the tax authority must not keep outside the tax accounting books the amounts that the tax authority must collect, has collected, or remains to be collected, must refund, has refunded, or remains to be refunded, exempted, reduced, debt scheduled, or debt canceled.
4. Tax accounting books in the form of data in the Tax Accounting Subsystem reflect tax accounting information created and stored electronically based on the tax accounting database, established according to the standard procedures of the Tax Management Application System, storing all arising tax management activities according to each business content and chronological order related to tax accounting. The tax accounting books in electronic data form can be printed out on paper for use as required by tax accounting tasks.
5. The tax accounting database must be recorded and stored in accordance with the requirements of the Law on Accounting, the Law on Electronic Transactions, Decree No. 174/2016/ND-CP dated December 30, 2016, of the Government of Vietnam detailing some articles of the Law on Accounting, guiding documents on the implementation of the Law on Accounting and consistent with the provisions of this Circular.”
Thus, the tax amounts that are due, collected, to be collected, to be refunded, refunded, to be refunded, exempted, reduced, debt scheduled, and debt canceled of taxpayers will be recorded and stored by the tax authority in the tax accounting books.
How does the tax authority make and store information about the tax amounts that taxpayers have paid and will pay?
Are information not collected through input allowed to be recorded in the tax accounting books?
Based on Article 26 of Circular 111/2021/TT-BTC stipulates as follows:
“Article 26. Opening, recording, and closing tax accounting books
1. Tax accounting books must be opened at the beginning of the tax accounting period; for newly established tax accounting units, tax accounting books must be opened from the date of establishment.
2. The tax accounting unit must base on the data collected from tax accounting input information, tax accounting documents to record in the tax accounting books. The recording in the tax accounting books must be prompt, clear, and complete according to the contents of each tax accounting book. The information and data reflected in the tax accounting books must be accurate, honest, and true to the data collected from tax accounting input information, tax accounting documents regarding the amounts due, collected, to be collected, to be refunded, refunded, to be refunded, exempted, reduced, debt scheduled, debt canceled.
3. Tax accounting books are recorded in chronological order of collecting tax accounting input information, tax accounting documents. It is strictly prohibited to record in tax accounting books any information not collected through tax accounting input information or tax accounting documents. Tax officers related to updating data into the Tax Management Application System are responsible for the accuracy of the updated information, ensuring complete, prompt, accurate, honest, continuous, and systematic reflection of all activities related to tax management.
4. The tax accounting unit must close the tax accounting books at the end of the tax accounting period before making the tax accounting report.”
Thus, the opening, recording, and closing of tax accounting books are conducted according to the aforementioned regulations. Information that has not been collected through tax accounting input information will not be recorded in the tax accounting books.
How to handle errors in recording tax accounting books?
Pursuant to Article 27 of Circular 111/2021/TT-BTC stipulates as follows:
“Article 27. Correcting tax accounting books
1. In case errors related to amounts due, collected, to be collected, to be refunded, refunded, to be refunded, exempted, reduced, debt scheduled, debt canceled are detected during the accounting period before the books are closed, the tax accounting department shall cooperate with the relevant departments to adjust the errors depending on the cause.
2. In case errors related to amounts due, collected, to be collected, to be refunded, refunded, to be refunded, exempted, reduced, debt scheduled, debt canceled of the previous year's accounting period are detected, the tax accounting department shall cooperate with the relevant tax management departments to adjust them in the tax accounting books of the previous year depending on the cause before closing the tax accounting period as stipulated in Article 8 of this Circular.
3. In case errors related to amounts due, collected, to be collected, to be refunded, refunded, to be refunded, exempted, reduced, debt scheduled, debt canceled are detected after the tax accounting period is closed but before the tax accounting report is approved by the competent authorities, the adjustment to the tax accounting books shall be as follows:
a) For adjustments according to the proposal of competent state authorities: The tax accounting department makes adjustment documents to record the adjusted data in the tax accounting books of the previous year as stipulated in Article 14 of this Circular.
b) For adjustments detected by the tax authority: Adjustments to the data in the tax accounting books of the previous year shall only be made upon approval by the General Department of Taxation with specific explanations. In cases where approval from the General Department of Taxation is not obtained, the tax accounting unit shall adjust the data in the current year's tax accounting books based on the "budget year" information to serve as the explanatory basis for the current year's tax accounting report in accordance with point d, clause 3, Article 8 of this Circular.
4. After the tax accounting report is approved by the competent authorities, any adjustments to the previous year's data regarding amounts due, collected, to be collected, to be refunded, refunded, to be refunded, exempted, reduced, debt scheduled, debt canceled shall be made in the current period with "budget year" information according to point d, clause 3, Article 8 of this Circular.”
Thus, in cases of errors in the recording and storing of tax accounting books, corrections to the tax accounting books are made according to the aforementioned regulations depending on the error and the time of detection.
Circular 111/2021/TT-BTC takes effect from July 1, 2022.
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