On April 24, 2023, the General Department of Taxation issued Official Letter 1483/TCT-KK regarding the implementation of tax collection and payment using the ID number for payable amounts. However, many businesses and individuals are still unclear about what the ID number for payable amounts is. Therefore, this article provides a comprehensive explanation of the ID number for payable amounts and its impact on businesses and taxpayers.
1. What is an identification code? When will tax collection based on identification codes begin?
The Taxpayer Identification Number (ID) is a sequence of characters defined by the tax authority's tax management application system. The ID is unique to each taxpayer's payable amount or tax file.
According to Point 1, Section II of Official Letter 1483/TCT-KK, from May 10, 2023, the General Department of Taxation's Electronic Information Portal provides electronic tax payment services based on the payable amount ID, upgrading the application system's functionality to meet the tax obligation management needs of taxpayers.
2. The role of identification codes in fulfilling tax obligations for businesses.
With the use of the Payment Account ID, the General Department of Taxation's electronic portal has upgraded its functionality to allow businesses and taxpayers to look up tax-related information and support the creation of payment slips using the ID code. Therefore, using the Payment Account ID will help businesses and taxpayers easily perform the following tasks:
Check the status of tax obligation processing.
The General Department of Taxation's online portal has upgraded the "Lookup outstanding tax amount" function to "Lookup tax obligation information," allowing taxpayers to use the tax liability ID code to check the status of their tax obligations.
- Businesses and taxpayers use their ID to look up all information related to the processing of payments due, paid, outstanding, overpaid, exempted, debt written off, refunded, refunded, and remaining refunds from the tax authorities.
- Businesses and taxpayers can use their ID to look up information on outstanding, paid, and refundable amounts recorded by the tax management application system up to the time of the lookup.
Regarding outstanding taxes, the payment status and order of each amount are clearly stated as follows:
- Not yet submitted
- The payment has been made to the bank and is awaiting processing.
- Under investigation
- Currently being processed for offsetting.
- The final settlement/compensation is currently being processed.
At the same time, the system also provides suggestions for businesses and taxpayers to choose from, such as creating a payment slip for state budget revenue or reviewing and adjusting tax obligations (if there are errors).
Implement the process of creating payment slips for depositing money into the state budget.
The General Department of Taxation's electronic portal allows businesses and taxpayers to use the Payment Due ID to create a Payment Slip for depositing money into the state budget.
(1) Using ID to “Create Payment Slip” allows taxpayers to:
- Query the total outstanding tax liability of the taxpayer by the payment identification code (ID) or query by the financial obligation identification file code or the vehicle registration fee file code.
- The General Department of Taxation's electronic portal returns the query results regarding the payable amount, assigning an ID, and automatically fills in the information on the payment slip based on the ID selected by the taxpayer.
- In cases where taxpayers select multiple IDs to create a single payment slip, provided that the payment order is consecutive, and they share the same information regarding the State Treasury receiving the revenue, the collecting agency, the revenue account, the economic content, the currency type, and the nature of the tax management transaction, the General Department of Taxation's electronic portal will support consolidating the IDs onto the payment slip. The ID displayed on the payment slip will be different from the individual IDs selected by the taxpayer.
- The ID code is guaranteed to be consistent from the stage of creating payment slips at the General Department of Taxation, through banks, to the State Treasury and tax authorities.
(2) Using ID to “Create Payment Slip for Substitute Payment” allows the substitute payer to do:
- Query the payable amount by the taxpayer's payable amount ID.
- The system verifies the ID code information and provides the payment priority order for that ID code to the person paying on behalf of the payer, allowing them to optimize their benefits.
- If the tax amount qualifies for the issuance of a substitute payment slip, the system will display detailed information of the pre-filled substitute payment slip using the ID code for the substitute payer to confirm completion. The information will then be sent to the bank serving the substitute payer for processing according to current procedures.
Benefits of using Accounts Payable Identification Numbers (IDs)
According to Official Letter No. 1483/TCT-KK, the General Department of Taxation's electronic portal has upgraded its function for collecting and paying taxes using the tax payable identification code (ID), bringing many practical benefits to taxpayers.
- Taxpayers can use the payable ID code to look up their tax obligations and inquire about amounts due.
- When paying taxes, businesses and taxpayers only need to select the payable ID, and the electronic portal will automatically fill in the relevant information on the payment slip, saving time, costs, and minimizing errors. The payable ID selected for payment, if it meets the regulations regarding the order of payment, will be deducted specifically according to the amount chosen by the taxpayer.
- When paying taxes using the payable ID, the amount of tax paid is offset against the specific debt on the day the tax authority receives the document with the correct ID. When taxpayers make tax payments to the state budget, the electronic portal assists in arranging the order of payment according to the provisions of the Tax Administration Law. Paying in the correct order ensures maximum benefit for taxpayers and promptly resolves obstacles and difficulties in operations caused by tax debt enforcement measures.