In the business process, changing sales locations, industries, operating scale or household owner information is quite common. However, many business households, after adjusting their business registration certificates, do not update correspondingly with the tax authorities, or update late compared to the prescribed time limit.
This situation often stems from the mentality that this is just an "administrative" change, not directly affecting tax obligations. In fact, not updating or slow updating tax registration information is identified as a violation, which may be fined with money.
Not updating tax information may be fined up to 7 million VND
According to Decree 125/2020/ND-CP, amended and supplemented by Decree 310/2025/ND-CP, acts of not notifying or not notifying on time about changes in tax registration information are subject to administrative penalties.
Business households may be fined from 1 - 7 million VND, depending on the nature, severity of the violation and the time of late notification. Common cases include:
- Failure to notify change of business address;
- Not updating changes in business lines;
- Not notifying changes in household owner or representative information;
- Slow notification of changes related to tax registration according to regulations.
The penalty is applied even in cases where no additional tax obligations arise.
Distinguishing between slow updates and unupdated tax information
From a legal perspective, it is necessary to clearly distinguish between slow updating tax registration information and not updating tax registration information. In case of slow updating, a lower penalty is usually applied within the penalty frame. Meanwhile, failure to notify for a long time, or only updating when inspected, may be considered a more serious violation.
In addition to fines, inconsistent information also makes tax management data inaccurate, generating risks in the process of comparing revenue, invoices and tax obligations.
Not updating tax information can lead to tax arrears and penalties
Not updating tax registration information is not automatically considered tax evasion. However, if not updating leads to incorrect revenue declaration, incorrect tax calculation methods or tax obligation differences, business households may be considered for retroactive tax collection.
According to the 2025 Law on Tax Administration, in case of detecting incomplete tax declaration, business households may have to:
- Supplement the remaining tax amount;
- Be fined 20% of the tax declared insufficiently;
- Being charged late payment according to regulations.
To limit risks, business households need to proactively review tax registration information immediately when there are changes in business operations. Timely updating not only helps avoid being fined from 1 - 7 million VND, but also ensures accurate tax data, limits disputes and retroactive collection.
In the context of increasingly data-based and inter-agency tax management, the delay or failure to update tax registration information is no longer a small mistake, but can lead to many legal consequences for business households.
