After using electronic invoices from the cash register, if the actual revenue of the business household changes by 50% or more compared to the estimated revenue, the estimated tax rate will be adjusted according to the actual revenue.
From June 1st, household businesses and individual business owners paying flat-rate taxes with annual revenue of 1 billion VND or more must use electronic invoices generated from cash registers connected to the tax authority's data system.
One business owner, who has been operating for nearly 30 years, shared that they are currently very worried about being required to pay back taxes from previous years based on revenue from invoices calculated from June 1st.
Furthermore, households without invoices for inventory or goods imported before June 1st argue that the policy should allow sellers 3-6 months to deal with their inventory.
According to a representative from the Tax Department (Ministry of Finance), based on the regulations in Circular 40/2021/TT-BTC, in the case of business households paying taxes using the lump-sum method, if there is a change in taxable revenue, they must file an adjustment or supplementary declaration.
Based on the tax declarations of taxpayers under the lump-sum tax system and the tax authority's database, if the actual revenue changes by 50% or more compared to the previously estimated revenue, the lump-sum tax will be adjusted according to the actual revenue from the time of the change in the tax year.
In cases where, after using electronic invoices from the cash register, the revenue shown on the invoice differs from the previously agreed-upon revenue, the same regulations as above shall apply.
Speaking at a press conference on June 16th in Hanoi, Deputy Director of the Tax Department Mai Son stated: "The tax authority calculates the lump-sum tax for business households based on the tax authority's data and the annual tax return of the business household, which determines the revenue for the year, and jointly assesses it to determine the tax."
However, during the year, if the business's revenue increases or decreases by more than 50%, the business can request the tax authorities to adjust the tax rate. The adjustment only applies from the time of the change onwards. That is the legal regulation; there is no question of retroactive tax collection under this policy.”
During the implementation of new tax regulations and policies, such as the use of electronic invoices generated from cash registers, Mr. Son affirmed that setbacks and errors are unavoidable.
"Among the more than 30,000 tax officials and employees, there are still individuals who, during the course of their work, lack patience, courage, and integrity, causing frustration among the people. We affirm that we will strictly handle such cases," the head of the Tax Department emphasized.
Tax Department: 'There's no such thing as retroactive collection of lump-sum taxes.'
How should inventory be invoiced?
Regarding the issue of how to issue invoices for inventory, a representative from the Tax Department stated that, according to Decree No. 70 amending and supplementing Decree No. 123 on invoices and documents, from June 1st, business households paying taxes using the lump-sum method with annual revenue of 1 billion VND or more; business households paying taxes using the declaration method; and business households with cash registers that sell goods or provide services directly to consumers, must use electronic invoices generated from the cash registers that transfer data to the tax authorities, including transactions for the sale of inventory.
The tax authorities recommend that households and individual businesses ensure that invoices and documents for purchased goods and services are stored in accordance with regulations, so that they can be provided to other state management agencies when requested, ensuring the origin and quality of goods.
According to Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consulting Association, current legal regulations require that purchased goods must have legitimate invoices and documents to verify their origin.
However, during the transition from the lump-sum tax system to the declaration-based tax system, there were instances where households had inventory without complete and legitimate invoices.
Ms. Cúc advised households to review their entire inventory, exclude all goods of illegal origin such as counterfeit goods, smuggled goods, or stolen goods (if any) from inventory, dispose of them properly, and keep them separate from goods ready for sale.
When switching to the declaration-based tax payment method, households will pay taxes on actual sales revenue. Accordingly, we request that the tax authorities not pursue cases of inventory lacking sufficient invoices and documents, except for illegal goods as excluded above.
Article source: Thanh Nien Magazine