Failure to declare tax falls under the case of being imposed tax.
According to point a, clause 1, Article 50 of the 2019 Law on Tax Administration, taxpayers are tax-determined when they do not register for tax, do not declare tax, do not submit additional tax dossiers as required by the tax authority, or declare taxes incompletely, truthfully, and accurately as a basis for tax calculation.
Thus, business households that are subject to tax declaration obligations but do not declare according to regulations may be determined by the tax authority the tax amount to be paid.
Tax determination is understood as the tax management agency determining the amount of tax payable or determining each tax calculation factor and basis to calculate tax obligations in cases where taxpayers do not comply with regulations.
This also means that the fact that business households do not provide declarations does not prevent tax authorities from having a basis to determine revenue and the amount to be paid.
According to Clause 2, Article 50 of the 2019 Law on Tax Administration, tax authorities can use 4 groups of bases to determine taxes.
The first is the database of the tax management agency and the commercial database. These may be information collected and managed by the tax authority or provided by relevant agencies and organizations as prescribed.
Second, the tax authority can compare the amount of tax payable of business establishments with the same goods, occupations and scale in the locality. If the locality does not have appropriate information for comparison, the tax authority is allowed to compare with business establishments in other localities.
Thirdly, valid inspection and examination documents and results. Information on operations, revenue, invoices, and documents determined during inspection and examination can be used as a basis for calculating tax obligations.
Fourth is the tax rate on revenue applied to each field and industry according to the provisions of tax law.
Thus, the tax amount is determined not only based on one source of information but can be determined from management data, trade data, inspection results or comparisons with similar business establishments.
The regulation continues to be applied from July 1, 2026
The 2025 Law on Tax Administration takes effect from July 1, 2026 and replaces the 2019 Law on Tax Administration, except for some regulations with their own effective dates.
According to Article 24 of the 2025 Law on Tax Administration, not registering for tax, not declaring tax or not submitting supplementary tax dossiers as required still falls into the group of cases where tax authorities are allowed to make tax assessments.
The new law also stipulates that tax management agencies can set the amount of tax payable or set each tax calculation factor and basis. The bases, methods, authority, procedures for tax setting and responsibilities of the parties will be specified by the Government.
Therefore, business households subject to declaration need to comply fully, on time and truthfully about revenue and tax base. Not sending declarations does not lose tax obligations but may also cause the amount to be paid to be determined from data collected and compared by the tax authority.
When can taxpayers be subject to enforcement?
From July 1, 2026, Article 48 of the 2025 Law on Tax Administration stipulates 5 specific cases subject to enforcement of administrative decisions on tax management.
These cases include:
Having tax arrears exceeding 90 days from the expiration date of payment;
Tax debt when the extended period expires; having tax debt but not operating at the registered address or having acts of asset distribution;
Failure to comply with the penalty decision on time; has been sanctioned for failing to comply with the tax inspection decision but continues to fail to comply.
This article also stipulates a number of cases where coercive measures have not been implemented or are not implemented, such as debts accepted for gradual payment and guaranteed by credit institutions; customs fees and charges for goods and transit vehicles; tax debt amounts being cleared through tax refunds.
In addition, the head of the tax management agency is allowed to decide on the case of enforcement based on the actual situation.
Coercive measures may include deducting money or freezing accounts, stopping the use of invoices, seizing assets, collecting money or assets held by third parties, and requesting the revocation of business household registration certificates.
Therefore, business households that are taxed but do not fulfill their tax payment obligations, incur tax debts and fall into cases prescribed by law may continue to be subject to coercive measures.
