Do itinerant individuals have to pay taxes on each occurrence in Vietnam?

Do itinerant individuals have to pay taxes under separate declarations in Vietnam?

Pursuant to Article 6 of the Circular 40/2021/TT-BTC stipulating method for calculating tax individual businesses under separate declarations 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.

With the information you provided above, you are an itinerant individual trader and do not have a fixed business location, so you will apply the method of tax declaration under separate declarations.

Do itinerant individuals have to pay taxes on each occurrence in Vietnam? - Source: Internet

Do itinerant individuals who pay taxes under separate declarations have to implement accounting in Vietnam?

Pursuant to Clause 3 Article 6 of the Circular 40/2021/TT-BTC stipulating as follows:

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.

As regulations above, 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.

What are the documents required for filing tax returns under separate declarations in Vietnam?

Pursuant to Clause 1 Article 12 of the Circular 40/2021/TT-BTC stipulating tax administration of individual businesses paying tax under separate declarations as follows:

1. Tax declaration dossier

The tax declaration dossier shall contain the documents specified in Point 8.3 of Appendix I of the Decree No. 126/2020/ND-CP. To be specific:

a) The tax form No. 01/CNKD enclosed herewith;

b) The following documents:

- Copy of the contract for provision of goods/services;

- Copy of the contract finalization record;

- Documents proving origins of goods such as: manifest of domestic farm products; manifest of traded goods of border residents for goods imported by border residents; invoices provided by sellers for imports purchased from domestic organizations and individuals; documents proving that the goods are manufactured by the individual business, etc.

The tax authority is entitled to request the taxpayer to present original copies for comparison with the copies.

When you proceed with the procedures and tax return forms under separate declarationse, you need to note and prepare the documents mentioned above when submitting the documents.

Best regards!