To ensure compliance with tax laws, understanding online business taxes and how to register and declare is extremely important. To help individuals and businesses doing business online better understand taxes, Viet My Law and Accounting will answer common questions related to register for an online business tax code in the article below.

1. Who must register for a tax code?

Pursuant to Article 30 of the 2019 Tax Administration Law, the subjects of tax registration and tax code issuance are as follows:

Subjects of tax registration and tax code issuance:

1. Taxpayers must register for tax and be granted a tax code by the tax authority before starting production and business activities or incurring obligations to the state budget. Subjects of tax registration include:
a) Enterprises, organizations and individuals who register for tax under the one-stop mechanism together with enterprise registration, cooperative registration and business registration in accordance with the provisions of the Enterprise Law and other relevant legal provisions;
b) Organizations and individuals not falling under the cases specified in Point a of this Clause shall register for tax directly with the tax authority in accordance with the provisions of the Minister of Finance.

….

Thus, taxpayers must register for tax and be granted a tax code by the tax authority before starting production and business activities or incurring obligations to the state budget. Including:

[1] Enterprises, organizations and individuals who register for tax under the one-stop mechanism together with enterprise registration, cooperative registration and business registration in accordance with the provisions of the Enterprise Law 2020 and other relevant legal provisions;

[2] Organizations and individuals not falling under the cases specified in [1] shall register for tax directly with the tax authority according to the regulations of the Minister of Finance.

2. Is it necessary to register a business to sell online?

* Case 1:

Individuals who sell online spontaneously, without a store (no fixed location) do not need to register a business. However, business individuals must still register a tax code according to form No. 03-DK-TCT (issued with Circular 105/2020/TT-BTC).

After successfully registering a tax code, the tax authority will issue a tax code according to the tax code structure -001 for individuals to submit declarations and pay taxes.

* Case 2:

Individuals or organizations that sell online with a store and regular sales activities are required to apply for a business license (business registration certificate).

In this case, you can choose 1 of the 2 following forms of business registration to sell online:

Individual business households: suitable for small scale, limited capital, few employees, few goods;

Company/enterprise: suitable for large scale business, diversified goods, need to open more branches.

3. What does the tax registration file include?

Article 31 of the 2019 Law on Tax Administration stipulates the first tax registration file as follows:

– Taxpayers who register for tax together with business registration, cooperative registration, business registration, the tax registration file is the business registration file, cooperative registration, business registration file according to the provisions of law.

– Taxpayers who are organizations that register for tax directly with the tax authority, the tax registration file includes:

+ Tax registration form;

+ A copy of the establishment and operation license, establishment decision, investment registration certificate or other equivalent documents issued by a competent authority that are still valid;

+ Other relevant documents.

– For taxpayers who are households, business households or individuals who register for tax directly with the tax authority, the tax registration dossier includes:

+ Tax registration form or tax declaration;

+ A copy of the identity card, a copy of the citizen identification card or a copy of the passport;

+ Other relevant documents.

– The connection of information between state management agencies and tax authorities to receive tax registration dossiers and issue tax codes under the one-stop mechanism via the electronic information portal is carried out in accordance with relevant legal provisions.

4. Instructions on how to register for an online business tax code

To declare business tax online, you need to follow these steps:

Step 1: You access the website https://thuedientu.gdt.gov.vn, then select the “INDIVIDUAL” section

Step 2: After the system switches to the website https://canhan.gdt.gov.vn/, you select the “Login” section

Step 3: Individuals enter the tax code and confirmation code in the box

Step 4: Next, you enter the password provided in the phone message to access the electronic tax declaration system for business households => Select “Login”

Step 5: After successfully logging in, you select the “Tax declaration” tab => Select the declaration “Form 01/CNKD” => Select the declaration form (monthly or quarterly) => Click “Continue”

Log in to the system to proceed with the online business tax declaration

Step 6: When the screen displays the declaration information 01/CNKD, you choose “HKD, CNKD pay tax according to the declaration method” => Declare full information

Choose “HKD, CNKD pay tax according to the declaration method”

Step 7: You do it in order: Choose 01-2/BK – HĐKD => Choose “Continue” => Choose “Accept”

Note: If the screen does not display Form 01-2/BK- HĐKD for you to choose, click on “Options” to add an appendix.

Step 8: After the screen displays detailed information about the business activity statement, you click on the option “Complete declaration”.

Step 9: When all information is correct, you choose “Submit declaration” => Click “Continue”

Note: If the screen asks for attached documents, you choose to skip and click Continue.

Step 10: Enter the OTP code sent by the General Department of Taxation’s application system => Click “Continue” => The screen will display the message “Declaration submitted successfully”.

5. Deadline for submitting and declaring online sales tax

Individuals who declare and pay online business tax codes must comply with the following regulations:

• Online business tax declarations must be submitted before the 20th of the month following the tax liability.
• In the case of quarterly declarations, the latest submission deadline is before the 30th of the following quarter.
• The deadline for submitting tax settlement documents is before the 90th day from the end of the calendar year.
• Regarding online business tax payment, the deadline is the last day to submit tax declarations for each month, quarter and tax settlement.

Viet My Law and Accounting hopes that the information in the article will help you better understand online business tax and how to register for an online business tax code. If you are planning to Register a Sole Proprietorship Business or are looking for a cheap Company Establishment Service and Full Accounting Service, please contact Viet My immediately for advice!