Circular 100/2021/TT-BTC amending Circular 40/2021/TT-BTC guidance on VAT for business households

CIRCULAR

Amending and supplementing a number of articles of the Minister of Finance’s Circular No. 40/2021/TT-BTC of June 1, 2021, providing guidance on value-added tax, personal income tax, and tax administration for business households and business individuals^[1]

Pursuant to the November 21, 2007 Law on Personal Income Tax; and the November 22, 2012 Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax;

Pursuant to the June 3, 2008 Law on Value-Added Tax; and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the Government’s Decree No. 209/2013/ND-CP of December 18, 2013, detailing and guiding a number of articles of the Law on Value-Added Tax;

Pursuant to the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Laws on Taxes and amending and supplementing a number of articles of the Decrees on taxes;

Pursuant to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Taxation;

The Minister of Finance promulgates the Circular amending and supplementing a number of articles of Circular No. 40/2021/TT-BTC of June 1, 2021, providing guidance on value-added tax, personal income tax, and tax administration for business households and business individuals (below referred to as Circular No. 40/2021/TT-BTC).

Article 1. To amend and supplement a number of articles of Circular No. 40/2021/TT-BTC

1. To amend Clause 3, Article 7 as follows:

“3. Presumptive tax-applying households whose payable presumptive tax amounts are notified by tax offices from the beginning of a year shall pay taxes as notified. For presumptive tax-applying households of which payable presumptive tax amounts are notified from the beginning of a year but which cease or suspend their business activities in the year, tax offices shall adjust payable tax amounts under Points b.4 and b.5, Clause 4, Article 13 of this Circular. Presumptive tax-applying households having just commenced their business activities (having carried out business activities for less than 12 months in a calendar year) shall be liable to pay VAT, and shall pay PIT if the turnover from their business activities per year exceeds VND 100 million; or shall not be liable to pay VAT, and are not required to pay PIT if the turnover from their business activities per year is up to VND 100 million.”

2. To amend Points dd and e, Clause 1, Article 8 as follows:

“dd/ The organization being the owner of an e-commerce trading floor declares and pays taxes on behalf of the authorizing individual in accordance with the civil law;

e/ The individual declares and pays taxes on behalf of the authorizing individual in accordance with the civil law.”

3. To amend Point c, Clause 1, Article 9 as follows:

“c/ In case an individual only has asset lease activities and the lease period is shorter than a year, he/she shall not be liable to pay VAT, and is not required to pay PIT if the turnover from asset lease is up to VND 100 million per year. In case the lessee pays rental in advance for many years, the turnover level used for determining whether the individual is liable to pay taxes is the rental paid in lump sum and distributed for calendar years.”

4. To add Clause 5 to Article 17 as follows:

“5. To develop solutions and roadmaps to provide information in the electronic form from e-commerce trading floors to tax offices in order to build a database on risk-based tax administration to meet the law-specified requirements on information confidentiality and facilitate operations of e-commerce trading floors. To guide the sharing and provision of information between tax offices and e-commerce
trading floors.”

5. To add Clause 6 to Article 18 as follows:

“6. In case the organization being the owner of an e-commerce trading floor does not declare and pay taxes on behalf of the authorizing business individual via the floor in accordance with the civil law, the provincial-level Tax Department shall coordinate with the e-commerce trading floor in sharing and providing information of the business individual via the floor under guidance of the General Department of Taxation for performing tax administration in accordance with law.”

Article 2. This Circular takes effect on January 1, 2022.

Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance (the General Department of Taxation) for study and settlement.-

For the Minister of Finance
Deputy Minister
TRAN XUAN HA