Obligations that households and individual businesses in Vietnam must fulfill before terminaton of tax identification number from February 6, 2025

Obligations that households and individual businesses in Vietnam must fulfill before terminaton of tax identification number from February 6, 2025​ (Image from the internet)

The Minister of Finance of Vietnam issues Circular 86/2024/TT-BTC dated December 23, 2024, prescribing taxpayer registration.

Obligations that households and individual businesses in Vietnam must fulfill before terminaton of tax identification number from February 6, 2025

The obligations to be completed before terminating the validity of the tax identification number for households and individual businesses in Vietnam are prescribed in Article 30 of Circular 86/2024/TT-BTC as follows:

- For business households with taxpayer registration under the one-stop mechanism; families and business individuals specified at point i, clause 2, Article 4 of Circular 86/2024/TT-BTC must complete obligations arising from business activities before terminating the validity of the tax identification number due to ceasing business activities as follows:

+ Completing invoice obligations according to the regulations on invoices if invoices are used.

+ Submitting tax declaration dossiers, paying taxes, and handling excess tax payments according to the provisions of Articles 43, 44, 47, 60, 67, 68, 70, 71 of the Law on Tax Administration 2019 with the tax management authority (for business households, families, individuals declaring taxes using the declaration method).

+ Taxpayers completing tax obligations and handling excess tax payments according to the provisions of Articles 60, 67, 69, 70, 71 of the Law on Tax Administration 2019 with the tax authority (for households, families, business individuals paying tax by the lump-sum method).

- For business households transitioning to small and medium enterprises as prescribed in the Law on Support for Small and Medium-sized Enterprises 2017, the household must complete tax obligations with the direct managing tax authority or have a document sent to the tax authority pledging that the small and medium enterprises converted from business households inherit all the tax obligations of the business household according to the law on support for small and medium enterprises.

- For individuals specified at points k, l, n of clause 2, Article 4 of Circular 86/2024/TT-BTC, they must complete tax payment obligations and handle excess payments according to the provisions of Articles 60, 67, 69, 70, 71 of the Law on Tax Administration 2019 with the tax management authority before the tax identification number is terminated.

- The tax identification number of business households, families, and individuals will be terminated upon ceasing business activities, while the tax identification number of the business representative, family representative, or individual will not be terminated and will continue to be used to fulfill other tax obligations of that individual.

Principles of terminating the validity of the tax identification number in Vietnam

The principles of terminating the validity of the tax identification number in Vietnam are stipulated as follows:

- The tax identification number cannot be used in economic transactions from the date the tax authority announces the termination of its validity;

- The tax identification number of an organization, once terminated, cannot be reused, except in cases specified in Article 40 of the Law on Tax Administration 2019;

- When the tax identification number of business households or individuals is terminated, the tax identification number of the business representative is not terminated and is used to fulfill the other tax obligations of that individual;

- When an enterprise, economic organization, or other organization or individual terminates the validity of their tax identification number, they must also terminate the validity of the substitute tax identification number;

- When the principal tax management unit terminates the validity of the tax identification number, the dependent units must also have their tax identification numbers terminated.

(Clause 3, Article 39 of the Law on Tax Administration 2019)

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