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MINISTRY OF
FINANCE
GENERAL DEPARTMENT OF TAXATION
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 2749/TCT-KK
Re: initiation of one-stop business and tax
registration for household businesses under Circular No. 02/2023/TT-BKHDT
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Hanoi, July
4, 2023
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To: Tax
Departments of provinces and centrally-affiliated cities (hereinafter referred
to as provinces).
Pursuant to Point a, Clause 1, Article 30 of the
Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 of the National
Assembly;
Pursuant to Point a, Clause 1, Article 26 of Decree
No. 126/2020/ND-CP dated October 19, 2020 of the Government on elaboration of
the Law on Tax Administration;
Pursuant to Article 79 to Article 94, Chapter III
of Decree No. 01/2021/ND-CP dated January 4, 2021 of the Government on business
registration;
Pursuant to Circular No. 105/2020/TT-BTC dated
December 3, 2020 of the Ministry of Finance on guidelines for tax registration;
Pursuant to Circular No. 02/2023/TT-BKHDT dated
April 18, 2023 on amendments to Circular No. 01/2021/TT-BKHDT dated March 16, 2021
of the Ministry of Planning and Investment Instructions on business
registration;
Pursuant to the Tax Registration Management Process
and amendments thereof.
Based on the above regulations, the General
Department of Taxation guides the one-stop business and tax registration with
the business registries for household businesses as follows:
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This Official Dispatch applies to household
businesses specified in Clause 1, Article 79 of Decree No. 01/2021/ND-CP
regulating household businesses.
Household businesses and individual businesses not
subject to Clause 1, Article 79 of Decree No. 01/2021/ND-CP shall register for
tax at the tax authority according to Circular No. 105/2021/TT-BTC and
applicable Tax Registration Management Process.
2. Implementation date: The
one-stop business and tax registration for household businesses will be
implemented from July 1, 2023 (From the effective date of Circular No.
02/2023/TT-BKHDT)
3. Plan to initiate and
upgrade applications to meet one-stop registration requirements:
- Phase 1 (Expected from July 1, 2023): Upgrade the
TMS (Tax Management System) application to facilitate information exchange
related to registration of new household businesses, locations of household
businesses.
- Phase 2 (Expected from September 1, 2023):
Upgrade the TMS application to facilitate information exchange related to the
remaining transactions.
4. The Tax Departments shall
raise awareness and disseminate the contents of the above documents and
instructions in this Official Dispatch to tax divisions/teams at the Tax
Department, Tax Sub-Departments, Regional Tax Sub-Departments; and conduct
propagation and guidance activities in various forms for taxpayers, including
household businesses and individual businesses in the provinces, to understand
and implement the new tax regulations.
The Tax Department, Tax Sub-Departments, Regional
Tax Sub-Departments shall closely coordinate with the business registries to
initiate the one-stop business and tax registration for household businesses
and answer any taxpayer concerns.
Documents attached to the Official Dispatch
include:
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- Appendix 2: Guidelines for handling business and
tax registration transactions for household businesses.
- Appendix 3: Guidelines for using the business and
tax registration functions for household businesses on the TMS application.
Difficulties that arise during the implementation
of this Circular should be reported to the General Department of Taxation for
consideration (via Department of Declaration: Ms. Nguyen Thi Huong Lan, Email:
nthlan@gdt.gov.vn, phone number: 024.39712730 ext. 7201; Department of
Tax Administration of Small and Medium Enterprises and Household Businesses and
Individuals: Mr. Le Tuan Tung, Email: nttung01@gdt.gov.vn, phone number:
024.39712730 ext: 4178; Department of IT: TMS Support Group, Email:
nhomhotrotms@gdt.gov.vn, phone number: 024.37689679 ext. 2032, 2077, 2021) for
instructions.
The General Department of Taxation requests the Tax
Departments to carefully review and implement this document./.
PP. GENERAL DIRECTOR
DEPUTY GENERAL DIRECTOR
Phi Van Tuan
APPENDIX 1
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Circular No. 02/2023/TT-BKHDT dated April 18, 2023,
on amendments to Circular No. 01/2021/TT-BKHDT stipulates new guidelines for
one-stop business and tax registration for household businesses, in specific:
I. Regarding taxpayers
1. When a taxpayer which is a household business
(as prescribed in Clause 1, Article 79 of Decree No. 01/2021/ND-CP) registers
to establish a new household business:
a. The household business must complete the
"APPLICATION FOR REGISTRATION OF HOUSEHOLD BUSINESS" form in Appendix
III-1 of Circular No. 02/2023/TT-BKHDT and submit it to the district business
registry where their headquarters is located (submitted in paper form at the
district business registry where their headquarters is located in person or by
post, or through the National Business Registration Portal).
b. When establishing a new household business with
multiple locations, the household business must choose one location to register
as its headquarters. As for the remaining business locations, the household
business shall complete the "APPLICATION FOR REGISTRATION OF HOUSEHOLD
BUSINESS" form in Appendix III-1 of the Circular No. 02/2023/TT-BKHDT
(point 5.4. Business location of household business).
2. Household businesses with a Certificate of
Household Business Registration issued under Circular No. 02/2023/TT-BKHDT
(from July 1, 2023) or a Certificate of Household Business Registration and
Certificate of Tax Registration (before July 1, 2023) who have a new business
location must complete the "NOTICE OF CHANGE OF HOUSEHOLD BUSINESS
REGISTRATION DETAILS" form (Appendix III-2, Circular No. 02/2023/TT-BKHDT,
Section 2: NOTICE OF CHANGE OF TAX REGISTRATION DETAILS) and submit it to the
district business registry where their headquarters or business location is
located.
3. Change of household business registration
details:
a. If a household business changes any of the
following business registration details: name, business address, members,
capital, business lines, or tax registration information, it must complete the
"NOTICE OF CHANGE OF HOUSEHOLD BUSINESS REGISTRATION DETAILS" form
(Appendix III-2, Circular No. 02/2023/TT-BKHDT) and submit it to the district
business registry where they are registered. If a household business changes
its business address leading to a change in tax authority (moving to another
province or moving to another district that is not in the same area of the
Regional Tax Department), it shall submit the form to the district business
registry where the new headquarters is planned to be located.
b. In case a household business changes the
business location details, it shall submit the application to their supervisory
tax authority according to Circular No. 105/2020/TT-BTC.
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5. Household businesses that suspend/resume
business before the notified date:
a. If a household business suspends or resumes
business before the notified date: It shall complete the "NOTICE of
business suspension/resumption before the notified date for household business”
form in Appendix III-4 of Circular No. 02/2023/TT-BKHDT, and then submit it to
the district business registry where it is registered.
b. If a household business suspends or resumes
business of a specific business location before the notified date, it shall
submit the form to the supervisory tax authority under Circular No.
105/2020/TT-BTC.
6. Household businesses that cease their operation:
a. If a household business ceases its own
operation: It shall obtain the tax authority’s approval for TIN invalidation
and complete the "NOTICE of ceased operation of household business” form
in Appendix III-5 of Circular No. 02/2023/TT-BKHDT, and then submit it to the
district business registry where it is registered.
b. If a household business ceases operation of a
specific business location: it shall submit the form to the supervisory tax
authority under Circular No. 105/2020/TT-BTC.
II. Regarding tax
authorities
1. When the tax authority receives a notification
from the business registry regarding the issuance of a TIN, change of business
registration details, business suspension/resumption before the notified date,
ceased operation of household business, change of household business owner,
violations subject to revocation of Certificate of Household Business
Registration/revalidation of legal status after revocation of Certificate of
Household Business Registration, it must follow the instructions in Appendix II
issued with this Official Dispatch.
2. Household businesses not regulated in Clause 1,
Article 79, Decree No. 01/2021/ND-CP will guide taxpayers to register tax
directly at the tax authorities according to Circular No. 105/2020/TT-BTC.
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APPENDIX 2
GUIDELINES FOR
HANDLING BUSINESS AND TAX REGISTRATION TRANSACTIONS FOR HOUSEHOLD BUSINESSES
(Issued together with Official Dispatch No. 2749/TCT-KK dated July 4, 2023
of the General Department of Taxation)
1. Register
to establish a new household business or new business location of a household
business
a. Registering to establish a new household
business: After the Tax Registration System receives information about
household business registration from the Household Business Registration
System, it shall automatically check if the information is correct, and then
send a response to the Household Business Registration System. The receipt and
check of information to record documents in the QHS (tax dossier management)
application is done automatically similarly to that for businesses according to
the guidelines in point 2.1, Appendix 01 of Official Dispatch No. 1057/TCT-KK.
March 28, 2019 of the General Department of Taxation.
- If the information is correct, the Tax
Registration System will automatically create a tax identification number (TIN)
and assign a tax authority to the household business. It will then transmit the
household business identification number and tax authority information to the
Household Business Registration System.
- If the information is incorrect, the Tax
Registration System will automatically report that incorrect information to the
Household Business Registration System.
The tax registration division of the tax authority
that is authorized to manage taxpayers and tax registration application shall
follow procedures as for businesses according to the guidelines in point 3, Appendix
01 of the Official Dispatch. No. 1057/TCT-KK dated March 28, 2019 of the
General Department of Taxation to transfer information to the Household
Business Registration System.
b. Register business location of household
business: After the Tax Registration System receives information about
registration of business location of a household business from the Household
Business Registration System, it shall automatically check if the information
is correct, and then send a response to the Household Business Registration
System. The receipt and check of information to record documents in the QHS
application is done automatically similarly to that for businesses according to
the guidelines in point 2.1, Appendix 01 of Official Dispatch No. 1057/TCT-KK.
March 28, 2019 of the General Department of Taxation.
- If the information is correct, the Tax
Registration System will automatically create a TIN for the business location
and assign a tax authority to that business location. It will then transmit the
business location identification number and tax authority information to the
Household Business Registration System.
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The tax registration division of the tax authority
that is authorized to manage taxpayers and tax registration application shall
follow procedures as for businesses according to the guidelines in point 3,
Appendix 01 of the Official Dispatch. No. 1057/TCT-KK dated March 28, 2019 of
the General Department of Taxation to transfer information to the Household
Business Registration System.
2. Change
of household business registration details:
2.1. Change of household business details:
a. Paper applications:
- If a household business changes information
leading to a change in tax authority (moving the headquarters to another
district, town, city, or province where the household business has registered
but not in the same area of the Regional Tax Department):
Within 1 working day of receiving the valid
application, the district business registry shall send a copy of the
application to the tax authority for the household business's headquarters. The
tax authority will then provide written feedback on whether the business has
fulfilled its tax obligations in accordance with the tax law.
Upon receiving the application transferred by the
district business registry, the tax authority will send a written response to
the district business registry. On the same day that it receives the tax
authority's document, the district business registry must do the following:
+ In case of receiving a document from the tax
authority stating that the household business has fulfilled its tax obligations
according to regulations, the district business registry shall issue a
Certificate of Household Business Registration to the household business on the
Household Business Registration System and send a copy of the Certificate of
Household Business Registration to the new supervisory tax authority where the
household business has just moved to so that the tax authority can update
information in the system.
+ In case of receiving a document from the tax
authority stating that the household business has not fulfilled its tax obligations
as prescribed, the district business registry shall issue a notice to amend the
application, requesting the household business to fulfill their tax obligations
before carrying out procedures for registering a change of headquarters.
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On the same day that it makes a change in household
business registration details, the district business registry shall send a copy
of the change to the tax authority.
Upon receiving a copy of the confirmation from the
district business registry, the tax authority must update the household
business's registration information in its system to synchronize data between
the two authorities.
b. Online applications:
When the Tax Registration System receives an
information about any changes of household business registration details
(except for information on business location registration, change of household
business owner) from the Household Business Registration System, The Tax
Registration System shall automatically check information to record documents
in the QHS application similarly to that for businesses according to the
guidelines in point 2.2, Appendix 01 of Official Dispatch No. 1057/TCT-KK.
March 28, 2019 of the General Department of Taxation.
- If a household business changes information
leading to a change in tax authority (moving the headquarters to another
district, town, city, or province where the household business has registered
but not in the same area of the Regional Tax Department):
When the Tax Registration System receives data from
the Household Business Registration System, the Tax Registration System shall
automatically check the information. If the changed information is incomplete,
invalid or the household business has not completed tax procedures at the tax
authority of the departure, the Tax Registration System will return an error
code. If the changed information is complete and valid, and the household
business has completed tax procedures at the tax authority of departure, the
Tax Registration System shall designate the tax authority of the destination to
it and transfer information to the Household Business Registration System.
- In case the household business changes other
details (which does not change their supervisory tax authority):
When the Tax Registration System receives data from
the Household Business Registration System, the Tax Registration System shall
automatically check the information. If the changed information is incomplete
or invalid, the Tax Registration System will return an error code. If the
changed information is complete and valid, the Tax Registration System shall
update the information into the database.
The processing of applications for change of
household business registration details is similar to that for businesses
according to the instructions in Point 4, Appendix 01 of Official Dispatch No.
1057/TCT-KK dated March 28, 2019 of the General Department of Taxation.
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When a household business applies to their
supervisory tax authority for change of their business location details, the
tax officer will process the application and updates it into the system
according to the instructions in the Tax Registration Management Process.
Notes: Regarding applications for
change of taxpayer’s headquarters to another district in the same
administrative area of the Regional Tax Sub-Department, the single window
division must comply with the instructions at the Official Dispatch No.
782/TCT-KK dated February 21, 2020 on guidelines for tax management for the
implementation of Regional Tax Sub-Departments.
3. Change
of household business owners
Carry out the same processing steps as converting
from household business to enterprise, in specific:
3.1. Paper applications:
Within 1 working day of receiving the valid
application, the district business registry shall transfer a copy of the
application to the tax authority to issue a new TIN to the household business.
Upon receiving the documents transferred by the business registry, the tax
authority shall create a TIN according to the information of the new household
business owner and send it to the business registry, and also invalidate the
household business's TIN that was issued according to the information of the
old household business owner. After receiving the new TIN, the district
business registry shall update the TIN information to the System and issue a
Certificate of Household Business Registration to the household business. After
issuing the Certificate of Household Business Registration, the district
business registry shall send a copy of this Certificate to the tax authority so
that the tax authority can update information into the system.
3.2. Online applications:
When the business registry receives a notice of
change of household business owner, the Household Business Registration System
shall transfer the information about new household business registration to the
Tax Registration System, and the enclosed application file for tax registration
of the old household business (household business’s TIN, household business
name, headquarters’ address, 9-digit or 12-digit identity card of the household
business owner, number, date, and place of issuance of the Business
Registration Certificate).
a. Processing information about new household
business:
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- After checking, the tax information system
returns results to the Household Business Registration System as follows:
+ In case the information about changing business
owner is complete and correct: The Tax Registration System shall return
information about the household business identification number and the
supervisory tax authority of the household business to the Household Business
Registration System.
+ In case the information about changing business
owner is incomplete and incorrect: The Tax Registration System shall return the
refusal to issue a household business identification number and return an error
to the Household Business Registration System so that the business registry
will notify the household business to complete their application as per the
regulations.
b. Invalidation of TINs of household businesses and
transfer of tax obligations of household businesses:
- After receiving information about the completed
issuance of a new Certificate of Household Business Registration from Household
Business Registration System, the Tax Registration System shall automatically
update the old household business's TIN (including the business location’s TIN
of a household business with the same Certificate and a “connection” button)
into status 03 "Taxpayer ceases their operation but has not completed the
procedure to invalidate their TIN" for the reason "Change of business
owner".
- The supervisory tax authority shall then
invalidate the TIN of the household business. Steps to process termination of
household business operations are carried out according to instructions from
step 4 to step 11, point 7, Appendix 1 of Official dispatch No. 5920/TCT-KK
dated December 25, 2017 of the General Department of Taxation.
- The supervisory tax authority must check if the
household business has fulfilled its tax obligations. If the household business
has not fulfilled its tax obligations, the tax authority must urge it to do so.
If the old household business does not fulfill its tax obligations, the new
household business will inherit all of its legal rights, obligations, and
interests.
4. Registration
of business suspension/business resumption before the notified date:
4.1. Household businesses that register business
suspension/business resumption before the notified date:
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On the same day that it issues a document that
confirms that the household business registers business suspension/business
resumption before the notified date, the district business registry shall send
a copy of the registration to the tax authority.
Upon receiving a copy of the confirmation from the
district business registry, the tax authority must update the household
business's registration information in its system to synchronize data between
the two authorities.
b. Online applications:
After receiving the above registration from the
Household Business Registration System, the Tax Registration System shall
automatically check information to record documents in the QHS application
similarly to that for businesses according to the guidelines in point 2.2,
Appendix 01 of Official Dispatch No. 1057/TCT-KK. March 28, 2019 of the General
Department of Taxation.
After checking the information, the Tax
Registration System automatically updates the business suspension/resumption
status before the notified date. The processing of applications for business
suspension/business resumption is similar to that for businesses according to
the instructions in point 13.1.1 and 13.2.1, Appendix 01 of Official Dispatch
No. 5920/TCT-KK dated December 25, 2017 of the General Department of Taxation.
4.2. Household businesses that register business suspension/business
resumption of the business location before the notified date:
When a household business applies to their
supervisory tax authority for business suspension/business resumption of their
business location, tax officers will process the application and update
information into the system according to the instructions in Point 13.1.2 and
Point 13.2.2, Appendix 1 of Official Dispatch No. 5920/TCT-KK dated December
25, 2017 of the General Department of Taxation.
5. Revocation
or revalidation of Certificate of Household Business Registration:
5.1. Paper applications:
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As soon as the notice or decision is sent by the
business registry, the tax authority will update information into the system
and process the related documents according to applicable regulations.
5.2. Online applications:
After receiving the information about revocation or
revalidation of Certificate of Household Business Registration from the
Household Business Registration System, the Tax Registration System shall
automatically check information to record documents in the QHS application
similarly to that for businesses according to the guidelines in point 2.2,
Appendix 01 of Official Dispatch No. 1057/TCT-KK. March 28, 2019 of the General
Department of Taxation.
After checking the information, the Tax
Registration System shall automatically update the status into revocation of
Certificate of Household Business Registration/cancellation of revocation decision
and revalidation of Certificate of Household Business Registration. Steps to
process are carried out similarly for businesses according to instructions
point 8 and section a3, point 12.1, Appendix 1 of Official Dispatch No.
5920/TCT-KK dated December 25, 2017 of the General Department of Taxation.
6. Household
businesses that cease their operation:
6.1. Household businesses that cease their
operation:
a. Paper applications:
When the district business registry receives an
application for ceased operation of a household business, the district business
registry shall send a written request to the tax authority for invalidation of
the TIN of the household business. Upon receiving the request from the
district business registry, the tax authority shall check information on their
tax management system.
- In case the household business has their TIN
invalidated, the tax authority shall send a written response to the district
business registry that the TIN of the household business has been invalidated.
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On the same day that it issues a notice of ceased
operation of the household business, the district business registry shall send
a copy of the notice to the tax authority.
b. Online applications:
Based on information about the cessation of
operation of the household business from the Household Business Registration
System, the Tax Registration System will automatically check the information
and send a status notification to the Household Business Registration System
indicating that the taxpayer's TIN has been invalidated. This will allow the
business registry to terminate the household business's operations.
The tax registration division of the tax authority
that is authorized to manage taxpayers and tax registration application shall
follow procedures as for businesses according to the guidelines in point 6,
Appendix 01 of the Official Dispatch. No. 1057/TCT-KK dated March 28, 2019 of
the General Department of Taxation to transfer information to the Household
Business Registration System.
6.2. If a household business ceases operation of a
specific business location:
When a household business applies to their
supervisory tax authority for ceased operation of their business location, tax
officers will process the application and update information into the system
according to the instructions in Point 7 and Point 1, Appendix 5920/TCT-KK of
Official Dispatch No. 25/12/2017 dated December 25, 2017 of the General
Department of Taxation.
7. Notes
In case Circular No. 105/2020/TT-BTC is amended or the Tax Registration
Management Process changes, the household business's TIN and the receipt,
inspection, and record-keeping, and processing of documents will be carried out
in accordance with the amended Circular and the new Tax Registration Management
Process.
8. Instructions
for some specific cases
8.1. The household business has been granted
a TIN but has not yet been granted a Certificate of Household Business
Registration
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8.2. The household business has been granted
a Certificate of Household Business Registration (before July 1,
2023) but has not yet been granted a TIN
a. In case the household business has not carried
out tax registration procedures from the date of issuance of the Certificate of
Household Business Registration: When the household business applies to the tax
authority for tax registration to issue a TIN, the tax authority shall issue a
TIN according to the instructions in Circular No. 105/2020/TT-BTC and impose penalties
for any late submission of tax registration applications.
In case the household business that has not yet
been granted a TIN applies to the business registry for changes of household
business registration details, business suspension/business resumption before
the notified date, or ceased operation of household business: The district
business registry shall instruct the household business to applies to the tax
authority for tax registration beforehand. When the household business
applies to the tax authority for tax registration to issue a TIN, the tax
authority shall issue a TIN to the household business and impose penalties for
any late submission of tax registration applications or any late fulfillment of
tax obligations.
After granting a TIN to the household business, the
tax authority shall send a relevant notice to the district business registry
for coordination and management; and also instruct the household business to
applies to the district business registry for change of tax registration details.
b. With respect to household businesses that have
passed the review and data standardization (named in a list sent by the
business registry) and have been granted a Certificate of Household Business
Registration but have not applied for tax registration (no TIN has been
issued). Based on the list provided by the business registry, the tax authority
shall verify the operating status of these household businesses. Regarding
household businesses which are operating at their registered addresses, the tax
authority shall issue TINs to these household businesses according to the
instructions in Circular No. 105/2020/TT-BTC and impose penalties for any late
submission of tax registration application, and also notify the TINs to the
district business registry for further coordination. The tax authority shall
then guide these household businesses to apply to the district business
registry for change of tax registration details. Regarding household businesses
which do not operate at their registered addresses, the tax authority shall
send a notice of the taxpayer’s non-operation at the registered address to the
district business registry where the household business's headquarters is
located to coordinate in management of the household business.
8.3. In case a household business is just
required to apply for business registration (according to Clause 1,
Article 79 of Decree No. 01/2021/ND-CP) to the tax authority (TIN issuance)
without applying to the business registry to do so
In case a household business is not required to
apply to the business registry for business registration (according to Clause
1, Article 79 of Decree No. 01/2021/ND-CP) but just apply to the tax authority
for tax registration under Circular No. 105/TT-BTC, using form No. 03-DK-TCT),
the application processing steps are set out in item 4.1, point 4, Appendix 1
of Official Dispatch No. 5920/TCT-KK dated December 25, 2017 of the General
Department of Taxation. The steps for receiving and processing
e-applications for tax registration are set out in Article 13 of Circular No.
19/2021/TT-BTC dated March 18, 2021 of the Ministry of Finance, and the tax
authority shall notify the district business registry for coordination and
management.
8.4. Cases not elsewhere specified in this
Official Dispatch (the taxpayer does not operate at the registered
address (status 06) or the taxpayer ceases operation but has not had their TIN
invalidated (status 03)) shall comply with provisions in Circular No.
105/2020/TT-BTC and applicable tax registration process.
9. In accordance with the
backup process, business registries and tax authorities may transmit electronic
copies of the paper documents specified above together with the paper copies,
subject to the agreement of the Tax Sub-Department, Regional Tax Department,
and district business registration office in the area. The tax authorities and
business registries shall use electronic copies to process taxpayer
applications and shall compare and retain the records upon receiving the paper
documents.
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