Vietnam: What is a large-scale household business? How do large-scale business households use e-invoices?
What is a large-scale household business according to Vietnamese regulations?
According to Question 17 of the Electronic Invoice Manual No. 2 of the Ho Chi Minh City Tax Department, guidance on large-scale business households are:
- Large-scale business household or individual: means a business household or individual with a scale of revenue and labor that meets the highest level of criteria for micro-enterprises or higher, specifically:
+ Business households and individuals doing business in the fields of agriculture, forestry, fishery and industry and construction with an average number of employees participating in social insurance per year of 10 or more or total turnover. of the preceding year from VND 3 billion or more;
+ Business households and individuals doing business in the field of commerce and services with an average annual number of employees participating in social insurance of 10 or more or the total revenue of the preceding year from 10 billion VND or more.
Vietnam: What is a large-scale household business? How do large-scale business households use e-invoices?
How do large-scale business households use e-invoices according to Vietnamese regulations?
According to Question 17 of the Electronic Invoice Manual No. 2 of the Ho Chi Minh City Tax Department, guidance on large-scale business households are:
- Business households and individuals with a scale of revenue and labor that meet the highest level of criteria of micro-enterprises according to the provisions of the law on supporting small and medium-sized enterprises must implement the accounting and tax payment according to the declaration method.
- If business households and individuals pay tax according to the declaration method, if it is determined that the taxable revenue is not realistic, the tax authority shall determine the taxable revenue according to regulations (similar to the tax assessment for enterprises).
- Business households and individuals need to contact the tax authorities directly managing them to register and use electronic invoices according to the tax agency's roadmap.
- In Ho Chi Minh City, apply electronic invoices for business households paying tax according to the declaration method from January 1, 2022.
- In case business households and individuals pay tax according to the declaration method (household declarations), they must send a declaration of registration for the use of e-invoices, made according to Form No. 01/DKTD-HDDT, to the tax authority via the tax group. electronic invoice service provider.
- When the tax authority replies with approval, the declarant may use an electronic invoice with the tax authority's code and must destroy the purchased invoice from the tax authority.
Can business households use e-invoices with or without codes in Vietnam?
Pursuant to Article 91 of the Law on Tax Administration 2019 of Vietnam:
"Article 91. Use of electronic invoices in sale of goods and services
1. Enterprises and business organizations shall use authenticated electronic invoices when selling their goods/services, regardless of the value of each sale, except for the cases specified in Clause 2 and Clause 4 of this Article.
2. Enterprises operating in the field of electricity, oil and gas, post and telecommunications, clean water supply, credit, insurance, health, e-commerce, supermarket, commerce, air/road/rail/sea/inland waterway transport; enterprises and business organizations that have been or will conduct electronic transactions with tax authorities, develop information technology infrastructure, have software for accounting, issuance, access and storage of electronic invoices, and ensure the transmission of electronic invoice data to buyers and tax authorities may use unauthenticated electronic invoices when selling goods/services, regardless of the value of each sale, unless tax-related risks are high as prescribed by the Minister of Finance or they wish to use authenticated electronic invoices.
3. The household businesses and individual businesses in the cases specified in Clause 5 Article 51 of this Law and other cases of determinable revenue from sale of goods/services may use authenticated electronic invoices.
4. Regarding household businesses and individual businesses that are not qualified to use authenticated electronic invoices as prescribed in Clause 1 and Clause 3 of this Article, enterprises, business organizations and other organizations that need to provide electronic invoices for their customers, tax authorities shall issue separate authenticated electronic invoices for individual sales, provided tax is declared and paid before such electronic invoices are issued."
Thus, business households use e-invoices with the tax authority's code. Particularly, business households paying tax by the presumptive method need an invoice to deliver to customers, they will be issued an electronic invoice with a code by the tax authority for each time it is incurred and must declare and pay tax before the tax authority issues the invoice. e-invoice for each generation.
Download Handbook on Electronic Invoice No. 2: Here.
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