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

From 2022, an individual only having asset lease activities may be exempted from VAT and PIT

On November 15, 2021, the Ministry of Finance issues the Circular No. 100/2021/TT-BTC amending and supplementing a number of articles of the Minister of Finance’s Circular No. 40/2021/TT-BTC of June 01, 2021, providing guidance on value-added tax, personal income tax, and tax administration for business households and business individuals.

According to new regulations, 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. 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.

Remarkably, 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 addition, 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.

This Circular takes effect on January 01, 2022.

For further details of the Circular 100/2021/TT-BTC, Click here