Over 580,000 business households will be in Tax authorities’ list

illustration image. Source: Internet

According to the General Department of Taxation, through the review results of the tax authorities, the number of business households which have fixed business locations but are not yet included in tax management is up to 581,700 households. Since then, requesting tax departments to immediately put those business households into the tax management area in 2019 for those who have been identified in fixed business locations but have not yet been included in the management.

At the same time, the tax departments must regularly review and ensure explanatory data for irregular individual business such as motorbike taxis, three-wheeled taxi, non-resident building contractors, street vendors and households doing business at spontaneous points - not officially allowed to operate (temporary market, toad market, village,...). In addition, tax departments need to pay attention to the households who both produce and retail products at many residential areas, which are subject to a lot of differences in the tax authorities' investigation criteria.

The General Department of Taxation also required tax departments to review and update fully, accurately and promptly the household management data on the TMS system in order to avoid the fact that the actual management data may have differences from the system.

It is known that so far, business households are still the subjects with great contribution in creating jobs and incomes for employees, accounting for a high proportion in the structure of gross domestic product (over 30% of GDP - Statistical yearbook of 2017). However, according to the calculation of the General Department of Taxation, the tax revenue of business households accounts for a very small proportion of the total state budget revenue (according to 2017 data is 1.56% of the total state budget revenue excluding crude oil).

For this situation, in the draft for tax administration, the General Department of Taxation and the Ministry of Finance proposed small business households be applied presumptive tax while large-scale business households will pay tax as the same declaration method with businesses currently.

Along with that, over the past time, the Decree 119/2018/ND-CP dated 12/9/2018 regulates electronic invoices when selling goods and providing services that is valid from 1/11/2018.