Are travelling traders in Vietnam individual businesses paying tax under separate declarations?

Are travelling traders in Vietnam individual businesses paying tax under separate declarations?

Pursuant to Article 6 of Circular 40/2021/TT-BTC regulating the tax calculation method for business individuals to pay tax each time as follows:

1. Individual businesses who have casual business operation and do not have fixed business locations shall pay tax separately. The individual shall determine whether his/her business is “casual” according to its characteristics in each business line. Fixed business location means the place where the individual’s business operation is carried out such as: transaction location, store, factory, warehouse, depot or a similar location.

2. Individual businesses paying tax under separate declarations include:

a) Travelling traders;

b) Individuals that are private construction contractors;

c) Individuals transferring Vietnam’s top-level domains “.vn”;

d) Individuals earning incomes from digital information products and/or services that do not choose to pay tax under periodic declarations.

3. Individual businesses paying tax under separate declarations are not required to do accounting but must retain invoices, contracts, documents proving the legality of their goods and services and enclose them with the separate tax declarations.

4. Individual businesses paying tax under separate documents shall declare tax whenever taxable revenue is earned.

Thus, Travelling traders in Vietnam are business individuals who pay tax each time arising in accordance with the law.

In the above case, you are a a travelling trader who is not required to implement the accounting regime, but must store invoices, vouchers, contracts, records proving lawful goods and services and present them with tax declaration records each time arising in Vietnam.

What are the regulations on method and basis for calculating tax payable by household businesses and individual businesses under periodic declarations in Vietnam?

Pursuant to Article 5 of Circular 40/2021/TT-BTC regulating method and basis for calculating tax payable by household businesses and individual businesses under periodic declarations as follows:

1. Periodic declarations shall be prepared by large-scale household businesses and individual businesses or other household businesses and individual businesses that choose to pay tax under periodic declarations.

2. Household businesses and individual businesses paying tax under periodic declarations shall declare tax monthly, except new businesses and businesses that satisfy the criteria for declaring tax quarterly prescribed in Article 9 of Decree No. 126/2020/ND-CP.

3. If the revenue of a household business or individual business that is paying tax under periodic declarations is found to be false, the tax authority shall impose the taxable revenue as prescribed in Article 50 of the Law on Tax Administration.

4. Household businesses and individual businesses paying tax under periodic declarations shall comply with on accounting, invoices and documents. A household business or individual business is not required to do accounting if their a business line has the basis for determination of revenue which is confirmed by a competent authority,

5. Household businesses and individual businesses paying tax under periodic declarations are not required to finalize tax.

Best Regards!