Is There a Penalty for Late Registration of Individual Business Household Taxpayer?

According to Article 33 of the 2019 Law on Tax Administration regarding the initial taxpayer registration deadline as follows:

- Taxpayers who apply for taxpayer registration simultaneously with enterprise registration, cooperative registration, business registration will have the taxpayer registration deadline coincide with the deadlines for enterprise registration, cooperative registration, business registration as prescribed by law.

- Taxpayers who register directly with the tax authorities must complete the taxpayer registration within 10 working days from the following date:

+ Receiving the certificate of household business registration, the license for establishment and operation, the certificate of investment registration, decision on establishment;

…

Therefore, within 10 working days from the date of receiving the certificate of household business registration, you must complete the taxpayer registration.

Additionally, Clause 4, Article 10 of Decree 125/2020/ND-CP prescribes penalties for violations regarding the taxpayer registration deadline; notification of business suspension; notification of resuming business activities before the specified time, in which:

A fine ranging from VND 6,000,000 to VND 10,000,000 for the following acts:

- Registering for tax; notifying the resumption of business activities before the specified time has passed the deadline as prescribed by 91 days or more;

- Failing to notify the resumption of business activities before the specified time without any payable tax arising.

Thus, you received the household business license in February 2021 (nearly 6 months ago) but have yet to complete the taxpayer registration. Therefore, you may be fined from VND 6 million to VND 10 million for failing to register for taxpayer beyond the deadline of 91 days or more. The fines prescribed in Article 10 apply to organizations (Clause 4, Article 7 of Decree 125).

Sincerely!