During the production and business activities, in addition to business registration, business households are also required to fully carry out tax registration procedures, notify temporary suspension of operations, and notify business continuation on time according to the law.
However, reality shows that many business households are still subjective, slow to implement or do not carry out these procedures, leading to the risk of administrative sanctions.
According to Article 10 of Decree No. 125/2020/ND-CP of the Government regulating administrative sanctions for tax and invoice violations, violations related to the tax registration deadline and business performance notification will be handled at each level.
110 days late may be warned
In case a business household registers for tax, announces temporary suspension of business operations or announces continued business before the announced deadline but is delayed from 01 day to 10 days, if there are mitigating circumstances, it may be subject to a warning.
This is considered the lightest level of handling, but the tax authority noted that business households should not be subjective, because repeat violations or no mitigating circumstances will be subject to fines.
Fine from 12 million VND for common violations
The fine of VND 1,000,000 to VND 2,000,000 is applied to many common acts in practice, including: Tax registration or notification of continued business before the notified deadline but beyond the prescribed deadline from 01 day to 30 days (except in cases of warning); notification of temporary suspension of business operations beyond the prescribed deadline; or failure to notify of temporary suspension of business operations.
Notably, many business households said that when they temporarily stopped trading, there was no need to notify the tax authority.
However, according to regulations, failure to notify is still considered a violation and may be subject to punishment.
extended delay, increased fines
In case a business household registers for tax or announces to continue trading before the announced deadline but is late from 31 days to 90 days, the fine will increase from VND 3,000,000 to VND 6,000,000.
If the delay is 91 days or more, the business household may be fined from VND 6,000,000 to VND 10,000,000. This penalty also applies to the act of not notifying to continue business activities before the notified deadline, even if the tax payable has not arisen.
Recommendations for business households
The tax authority recommends that business households need to closely monitor the tax registration deadline, temporarily suspend and continue business activities; proactively implement the notice in accordance with regulations to avoid unnecessary sanctions.
In the context of increasingly strict tax management, proper and sufficient compliance with legal obligations not only helps business households reduce risks but also facilitates long-term, transparent and sustainable operations.
