Tax declaration services for business households in Vietnam

Streamline tax declarations for your business household in Vietnam. Our services simplify compliance, saving you time and hassle. The development of e-commerce has brought a lot of convenience to consumers. The trend has changed markedly from traditional sales models to online sales models, the number of consumers participating in shopping is increasing, leading to a rapid increase in the number of business individuals. Individuals participating in business must carry out business household registration procedures and fulfill the obligation to declare and pay taxes to the State. In addition to the service of establishing individual business households, Viet An Tax Agent also provides tax declaration services for business households to support business households to fulfill their tax obligations fully and accurately. From there, business households will be assured to focus on developing production and business activities.

Business households are not required to declare and pay tax

Pursuant to Clause 2, Article 4 of Circular 40/2021/TT-BTC stipulating the principles of tax calculation as follows: “2. Business households and individuals with revenue from production and business activities in a calendar year of VND 100 million or less are not required to pay VAT and PIT in accordance with the law on VAT and PIT. Business households and individuals are responsible for declaring tax accurately, honestly and fully and submitting tax dossiers on time; take responsibility before law for the accuracy, truthfulness and completeness of tax dossiers as prescribed”.

Accordingly, the basis for determining that business households and individuals are not required to pay personal income tax is that in a calendar year the revenue from production and business activities is less than VND 100 million.

What taxes must be paid by business households?

Payment of license fees

Business households are obliged to pay license fees, except for cases where license fees are exempt.

Value Added Tax and Personal Income

The payable tax amount is determined as follows:

• Payable VAT amount = VAT calculation turnover x VAT rate
• Payable PIT amount = PIT calculation revenue x PIT rate

In which:

• Turnover for VAT calculation and PIT calculation turnover for business households and individuals is the turnover including tax (in case subject to tax) of all sales proceeds, processing fees, commissions, service provision fees arising in the tax period from production activities, trading in goods and services, including bonuses, sales support, sales promotion, commercial discounts, payment discounts, cash or non-cash supports; price subsidies, surcharges, surcharges, surcharges and surcharges are entitled to as prescribed; compensation for breach of contract, other compensation (only included in PIT revenue); other revenues to which business households and individuals are entitled, regardless of whether money has been collected or not yet
• VAT rate and PIT rate according to the guidance in Appendix I issued together with Circular 40/2021/TT-BTC

In addition, individual business households may also have to pay environmental protection tax, natural resource tax, etc. if trading in goods subject to tax under these laws.

Tax calculation method for individual business households

Individual business households can calculate tax in 3 ways: the declaration method, the method by each time of occurrence and the presumption method. Each method will be specified in the object of application.

However, the method of calculating tax each time incurred is only applied when an individual business household is declaring according to the presumption method but needs to issue additional invoices, that invoice will apply the method for each time it is incurred.

Time limit for submission of tax returns and tax amounts of business households

• For quarterly tax filers: The last day of the first month of the following quarter.
• For businesses that file taxes monthly: No later than the 20th of the following month, businesses must submit their tax returns and pay taxes.

Tax declaration services for business households of Viet An Tax Agent

Viet An Tax Agent’s duties for household business tax accounting services

Similar to other services for businesses, for the model of individual business households (business households), Viet An Tax Agent also commits to the following benefits for customers:

• Free delivery and receipt of documents, invoices, books, etc.;
• Free consultation on how to use input and output invoices reasonably;
• Free consultancy on accounting regulations and regimes for business households;
• Commitment to confidentiality of accounting information and customer information for life;
• Commit to progress and complete reports and declarations on time;
• Commit to take full responsibility for the documents and books made by Viet An Tax Agent;
• Commit that all books and vouchers are implemented in accordance with current accounting standards;
• Review all documents, invoices and books that the accountant of the business household has made and advise on adjustment if there are errors.

If you have any difficulties or questions related to tax declaration services for business households, please contact Viet An Tax Agent for the most specific advice.