Amendments to Circular 40/2021/TT-BTC on tax administration of household businesses and individual businesses

On November 15, 2021, the Minister of Finance of Vietnam issued Circular 100/2021/TT-BTC amending to Circular 40/2021/TT-BTC on guidelines for value-added tax, personal income tax and tax administration of household businesses and individual businesses

Amendments to Circular 40/2021/TT-BTC on tax administration of household businesses and individual businesses

Accordingly, the provisions of Point dd Clause 1 Article 8 of Circular 40/2021/TT-BTC are amended as follows:

Organizations, including the owner of the E-commerce trading floor, shall declare and pay tax on behalf of other individuals on the basis of authorization in accordance with the provisions of civil law.

Currently, Point dd, Clause 1, Article 8 of Circular 40/2021/TT-BTC stipulates:

The organization is the owner of an e-commerce platform, declares and pay tax on behalf of the individual according to the tax authority’s roadmap. Before being able to declare and pay tax on behalf of individuals, organizations that are owners of e-commerce platforms shall provide information about the individuals’ business operation on their platforms as requested by tax authorities, such as: full name; ID/passport number; taxpayer identification number (TIN); address; email address; phone number; goods and services provided; revenue; the seller’s bank account; other relevant information

Thus, the e-commerce platform will not have to declare or pay tax on behalf of the sellers without authorization.

At the same time, remove the phrase "organization" at Point e, Clause 1, Article 8 of Circular 40/2021/TT-BTC to be consistent with the above amendments, specifically the new regulations as follows:

Individuals declare tax on behalf of individuals, pay taxes on behalf of individuals who are taxpayers on the basis of authorization according to the provisions of civil law.

In addition, supplements to Clause 6, Article 18 of Circular 40/2021/TT-BTC as follows:

In case the organization that is the owner of the E-commerce platform does not declare tax on behalf of individual businesses through the E-commerce platform on the basis of authorization under the provisions of civil law, the Tax Department shall coordinate with the E-commerce Exchange in sharing and providing information of the individual businesses through the platform under the guidance of the General Department of Taxation for tax management in accordance with the law.

Circular 100/2021/TT-BTC takes effect from January 1, 2022.

Bao Ngoc

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