Q&A on tax policy on business household tax declaration

Nghe An Tax Department would like to reply:

In Clause 5, Article 51, Tax Administration Law No. 38 stipulates: “Business households and individual businesses with revenue and labor scale meeting the highest level of criteria of micro-enterprises according to legal regulations on support for small and medium-sized enterprises must implement the accounting regime and pay taxes according to the declaration method.

In Clause 1, Article 90, Tax Administration Law No. 38 stipulates: “When selling goods or providing services, the seller must create an electronic invoice, deliver it to the buyer in a standard data format and must fully record the content according to the provisions of tax law and accounting law, regardless of the value of each sale of goods or provision of services.".

According to the provisions of Clause 3, Article 4 of Circular 88/2021/TT-BTC dated October 11, 2021: “The content, form of invoices, procedures for creating, managing and using invoices (including electronic invoices) shall comply with the provisions of tax law.".

In Article 5, Circular No. 40/2021/TT-BTC guides:

– Business households and individuals paying taxes according to the declaration method shall declare taxes monthly, except for cases where business households and individuals are newly established and business households and individuals meeting the criteria for quarterly tax declaration and choosing to declare taxes quarterly (criteria for quarterly tax declaration as prescribed in Article 9 of Decree 123/2020/ND-CP: total revenue from sales of goods and provision of services of the previous year is 50 billion VND or less).

Floods affect production and business of business households. Illustrative photo

– Business households and individuals paying taxes by declaration method must implement accounting, invoice and voucher regime. In case business households and individuals conducting business in fields and industries with basis to determine revenue as confirmed by competent authorities, they do not have to implement accounting regime.

Pursuant to the above regulations and instructions, from January 1, 2022, business households paying taxes by declaration method shall declare and pay taxes monthly or quarterly and must comply with the accounting, invoice and voucher regime as prescribed. All transactions of purchase, sale and provision of goods and services must have invoices and vouchers as prescribed.