Circular 88/2021/TT-BTC guiding the accounting regime applicable to business households and individuals

CIRCULAR

Guiding the accounting regime applicable to business households and individuals

________________

Pursuant to the Law on Accounting dated November 20, 2015;

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

Pursuant to the Government’s Decree No. 174/2016/ND-CP dated December 30, 2016 on detailing a number of articles of the Law on Accounting;

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

At the request of the Director of the Department of Accounting and Auditing Regulations;

The Minister of Finance hereby promulgates the Circular guiding the accounting regime applicable to business households and individuals.

CHAPTER I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the making of accounting documents and recording of accounting books of business households and individuals.

Article 2. Subjects of application

1. This Circular applies to business households and individuals who pay taxes using the declaration method under the tax law.

 2. Business households and individuals that are not required to observe the accounting regime shall be encouraged to apply this Circular if they have a demand.

Article 3. Organization of the accounting work

1. The arrangement of accountants of business households and individuals shall be decided by the representatives of business households and individuals. The representatives of business households and individuals may arrange their natural parents, adoptive parents, spouses, natural children, adopted children, siblings as accountants for business households and individuals or arrange managers, executive officers, storekeepers, cashiers, or people who are assigned the task of regularly buying and selling assets to concurrently act as accountants for business households and individuals.

2. Business households and individuals shall comply with the accounting regime guided in this Circular or may choose to apply the micro-enterprises accounting regime to meet their management requirements and production and business characteristics.

3. Business households and individuals shall apply the provisions of Article 41 of the Law on Accounting and Articles 9, 10, 11, 12, 13, 14, 15, 16, 17 of the Decree No. 174/2016/ND-CP dated December 30, 2016, to preserve and archive accounting documents in order to serve the determination of tax obligations of business households and individuals towards the state budget, and the management of business households and individuals by tax agencies.

CHAPTER II

SPECIFIC PROVISIONS

Article 4. Accounting documents

1. Contents of accounting documents, the making, archiving, and signing of accounting documents of business households and individuals shall comply with Articles 16, 18, and 19 of the Law on Accounting and specific guidance in Appendix 1 "Form and method of making accounting documents" promulgated together with this Circular.

2. Business households and individuals shall apply the provisions of Articles 17, 18 of the Law on Accounting on making, archiving accounting documents in electronic form to meet their production and business activities characteristics.

3. The contents and forms of invoices, invoice-making order, management and use of invoices (including e-invoices) must comply with the tax law.

4. Business households and individuals shall use accounting documents according to the following list:

The use purposes, forms, contents, and methods of making accounting documents prescribed in this Article shall be performed under specified guidance in Appendix 1 "Form and method of making accounting documents" promulgated together with this Circular.

Article 5. Accounting books

1. Contents of accounting books, the opening, recording, closing, and archiving of accounting books of business households and individuals shall comply with Articles 24, 25, and 26 of the Law on Accounting and specific guidance in Appendix 2 "Form and method of recording accounting books" promulgated together with this Circular.

2. Business households and individuals shall apply the provisions on opening, recording, closing and archiving of accounting books in electronic devices under Article 26 of the Law on Accounting to meet their production and business activities characteristics.

3. Business households and individuals shall apply the provisions on correction of accounting books under Article 27 of the Law on Accounting to meet their production and business activities characteristics.

4. Business households and business individuals shall use accounting books according to the following list:

The use purposes, forms, contents and methods of recording accounting books shall be guided in Appendix 2 "Form and method of recording accounting books" promulgated together with this Circular. If a business household or individual has many different business locations, the business household or individual must open an accounting book to monitor each business location.

Article 6. Determination of revenue, expenses, tax obligations

The determination of revenue, expenses and tax obligations for each business field and sector of business households and individuals must comply with the tax law.

CHAPTER III

ORGANIZATION OF IMPLEMENTATION

Article 7. Effect

1. This Circular takes effect on January 01, 2022.

2. The Minister of Finance’s Decision No. 169/2000/QD-BTC dated October 25, 2000, promulgating the accounting regime for business household, and the Minister of Finance’s Decision No. 131/2002/QD-BTC dated October 18, 2002, amending and supplementing the accounting regime for business household, ceases to be effective on the date this Circular takes effect.

3. The People’s Committees, Departments of Finance, and Tax Departments of provinces and centrally-affiliated cities shall be responsible for guiding the business households and individuals to implement this Circular.

4. Any difficulties arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and settlement./.

For the Minister

The Deputy Minister

Ta Anh Tuan

* All Appendices are not translated herein.