by Apra Law

With the goal of collecting taxes correctly and sufficiently in order to fully promote the role of taxes in socio-economic development, the State must set out regulations and laws to create a unified corridor, forcing all organizations and individuals business people to follow. To ensure the implementation of the Tax Law, the State organizes an apparatus for tax administration and implementation supervision. Therefore, the tax administration role of the State is imposed, is an objective factor in the process of management and ensures that the tax policy is strictly implemented in the reality of socio-economic life.

What is tax and tax administration?

Tax is a compulsory payment to the state budget of organizations, households, business households and individuals according to the provisions of tax laws (Article 3 of the Law on Tax Administration 2019).

Tax administration is the establishment of mechanisms and measures by the State to ensure the rights and obligations of taxpayers, tax collection agencies and related organizations and individuals in the process of tax collection and payment.

Legal regulations on tax administration for business households

Article 4 of Circular No. 40/2021/TT-BTC guiding value-added tax, personal income tax and tax administration for business households and individuals, providing for tax administration for business households:

Firstly, the tax calculation principle for Business Households shall comply with the provisions of current laws on value-added tax, personal income tax and relevant legal documents;

Second, Business households with turnover from production and business activities in the calendar year of 100 million VND or less are in the case of not having to pay value added tax and not having to pay personal income tax according to regulations. legislation on value added tax and personal income tax. Business households are responsible for making accurate, honest and complete tax declarations and submitting tax dossiers on time; take responsibility before law for the accuracy, truthfulness and completeness of tax records as prescribed;

Thirdly, business households in the form of groups of individuals or households, the turnover level of 100 million VND/year or less is used to determine that individuals do not have to pay value added tax and do not have to pay personal income tax. determined for a single representative of a group of individuals or households in the tax year”.

Business households manage taxes by methods such as declaration method and presumption method. In which, business households paying tax according to the declaration method are large-scale business households, business households that have not yet met the requirements of large-scale but choose to pay tax according to the declaration method. Business household paying tax by the presumptive method is a business household that fails to implement or fails to fully implement the accounting, invoice and voucher regime, except for the case where the business household pays tax according to the declaration method.

Tax management during the temporary suspension of business activities for business households

Article 37 of the Law on Tax Administration 2019 stipulates the time for taxpayers to suspend operations and business:

First, a business household subject to business registration suspends its operation or business for a definite time or resumes operation and business before the notified time limit in accordance with the Law on Enterprises and other provisions of law. If relevant, the tax authority shall base itself on the notice of the taxpayer or a competent state agency to perform tax administration during the time the taxpayer suspends its operation or business or resumes its operation or business. business before the deadline in accordance with the Law on Tax Administration 2019.

Second, a business household that is not subject to business registration shall notify the tax authority directly managing it at least 01 working day before suspending its operation or business or continuing to operate or do business. before the announced deadline for tax administration.

Third, the Government shall stipulate tax administration for taxpayers during the period of temporary suspension of operation, business or resumption of business activities ahead of time.

Decree 126/2020/ND-CP guiding the Tax Administration Law 2019 stipulates tax administration during the period of suspension of business and operation for business households paying tax by the presumptive method and redefined by tax authorities. presumptive tax according to regulations of the Minister of Finance.

Solution to complete regulations on tax management for Business Households in Vietnam today

Firstly, for Business Households, only business lines prescribed by law must be registered. In contrast, some industries do not have to register for business such as: street vendors; trade in trips; perform services such as shoeshine, lottery ticket sales, lock repair, car repair, parking, haircuts on sidewalks, etc. Therefore, to overcome the situation of not managing all the business households, tax authorities should switch to the one-stop-shop system for business registration and tax registration as for enterprises.

Secondly, continue to promulgate, perfect and implement synchronously the provisions of the law on “tightening” of retail invoices of business households. Currently, the “squeezing” of invoices is done according to Official Letter No. 5156/TCT-KTNB dated 7/11/2016. However, it is necessary to increase the “effectiveness” of these regulations by amending and supplementing the Circular

92/2015/TT-BTC. On the other hand, in order to ensure consistency in the provisions of the law, it is advisable to include in the Circulars and Decrees regulating invoices, tax inspection and examination.

Third, further promote the implementation of tax collection authorization for individuals doing business by the presumptive method (including the use of invoices). Accordingly, tax authorities in provinces and cities continue to actively sign cooperation agreements with local post and telecommunications agencies, banks, etc. to effectively collect taxes. This collection can be done by the following methods: Collection at business locations such as business households in market areas, trade centers, street areas; collection at the system of authorized recipients (at post offices, banks); collection via bank card.

Fourth, review and supplement all necessary regulations in the process of tax administration for Business Households for timely handling. At the same time, it is necessary to improve the responsibility of business households in the process of providing information to tax authorities…

Above is the article on “Tax management for business households according to current regulations” of Apra Law Firm. If you still have questions about the above issues and need to be answered, please contact the hotline for advice and support.


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