Vietnam: How does a business household pay tax for the amount of inventory from many years without invoices?
- What are the regulations on invoices for goods in Vietnam?
- Principles of making, managing, and using e-invoices according to Vietnamese regulations?
- How does a business household paying tax according to the declaration method handle the amount of inventory from many years without invoices in Vietnam?
What are the regulations on invoices for goods in Vietnam?
According to Question 20, Manual on electronic invoices No. 2 of Ho Chi Minh City Tax Department of Vietnam instructs:
Clause 5, Article 51 of the Law on Tax Administration 2019 of Vietnam stipulates:
“Article 51. Flat tax payable by household businesses and individual businesses
1. Tax authorities shall determine the flat tax payable by household businesses and individual businesses who fail to comply with or fully comply with regulations on accounting, invoices and documents, except for the cases in Clause 5 of this Article.
2. Tax authority shall impose flat tax according to declarations of household businesses and individual businesses, the database of tax authorities, and comments of Tax Advisory Council of the commune.
3. Flat tax shall be imposed by calendar year (or by month for seasonal business). Flat tax shall be published in the commune. The taxpayers shall inform the tax authority when changing their business lines or scale, suspend or shut down the business in order to adjust the flat tax.
4. The Minister of Finance of Vietnam shall specify the bases and procedures for determination of flat tax payable by household businesses and individual businesses.
5. Household businesses and individual businesses whose revenues and employees reach the upper limit for extra-small enterprises prescribed by regulations of law on small and medium enterprises shall do accounting and declare tax.”
According to the provisions of Article 4 of Circular 88/2021/TT-BTC of Vietnam dated October 11, 2021, then:
"Article 4. Accounting vouchers
1. Contents of accounting vouchers, the making, storage and signing of accounting vouchers of business households and individuals shall be applied according to the provisions of Articles 16, 18 and 19 of the Law on Accounting and implementation. according to specific instructions in Appendix 1 "Form and method of making accounting vouchers" issued together with this Circular.
2. Business households and individuals may apply the provisions of Articles 17 and 18 of the Law on Accounting of Vietnam on the preparation and storage of accounting vouchers in electronic form to comply with the operation characteristics. production and business of business households and individuals.
3. Invoice content and form, order of making, managing and using invoices (including electronic invoices) comply with the provisions of tax law..."
Vietnam: How does a business household pay tax for the amount of inventory from many years without invoices?
Principles of making, managing, and using e-invoices according to Vietnamese regulations?
In Clause 1, Article 90 of the Law on Tax Administration 2019 of Vietnam stipulates:
"Article 90. Rules for issuance, management and use of electronic invoices
1. When selling goods/services, the seller shall issue and send electronic invoices to buyers. The electronic invoices shall follow standard formats and contain sufficient information in accordance with tax laws and accounting laws, regardless of the value of each sale.
2. The sellers that use cash registers shall register to use electronic invoices generated by cash registers that are digitally connected to the tax authorities.
3. The registration, management and use of electronic invoices in sale of goods/services shall comply with regulations of law on electronic transactions, accounting and tax.
4. Electronic invoices shall be authenticated by tax authorities according to information provided on the invoices by the enterprises, business organizations, other organizations, household businesses and individual businesses. Enterprises, business organizations, other organizations, household businesses and individual businesses are held responsible for the accuracy of information on their invoices.
5. The Government shall elaborate this Article."
Thus, based on the above regulations and instructions, from January 1, 2022, all transactions of buying, selling and providing goods and services by business households paying tax according to the declaration method must have invoices. prescribed documents.
How does a business household paying tax according to the declaration method handle the amount of inventory from many years without invoices in Vietnam?
According to Question 20, Manual on electronic invoices No. 2 of Ho Chi Minh City Tax Department of Vietnam instructs:
- In case of inventory purchased before January 1, 2022 without invoices and vouchers as prescribed, the business household determines and is responsible for itself when updating the accounting books for inventory without invoices. vouchers purchased before 01/01/2022.
- Tax authorities in the process of management are responsible for checking, comparing and managing according to risk for cases where there are signs of updating inventory values that are not suitable for actual production and business activities to avoid abuse cases.
Download Handbook on Electronic Invoice No. 2: Here.
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