Law on Tax Administration No. 38/2019/QH14, promulgated on June 13, 06, published in the Official Gazette on July 2019, 18, effective from July 07, 2019. Particularly, regulations on invoices and electronic documents take effect from July 01, 7.

The Tax Administration Law 2019 has many new points in the regulations that directly affect taxpayers.

Here are 9 new points to know in the Law on Tax Administration 2019 that are closely related to taxpayers, especially businesses, details are as follows:

1. Extend taxpayer rights

Compared with the old law on tax administration, the rights of taxpayers were expanded as follows:

• To receive documents related to tax obligations of functional agencies when conducting inspections, inspections and audits.
• It is known that the deadline for settlement of tax refund, the non-refundable tax amount and the legal basis for the non-refundable tax amount.
• To receive tax-handling decisions, tax examination and tax inspection records, to be asked to explain the contents of tax-related handling decisions;
• Not to be sanctioned for tax-related administrative violations or late payment interest in cases where taxpayers comply with written instructions and handling decisions of relevant tax agencies or competent state agencies. to the content of the taxpayer's tax liability determination

2. Tax administration regulations for e-commerce activities

Article 42 of the Law on Tax Administration 2019 stipulates:

“For e-commerce business, digital-based business and other services provided by an overseas supplier who does not have a permanent establishment in Vietnam, the overseas supplier have obligations to directly or authorize tax registration, declaration and payment in Vietnam according to regulations of the Minister of Finance. "

3. Tighten management of price transfer activities

Article 42 of the Law on Tax Administration 2019 provides the principles of declaration and determination of taxable prices for related transactions in order to tighten the management of price transfer activities as follows:

"ｄｅｃｌａｒｅ and determine transfer pricing according to the principle of analysis and comparison with independent transactions and the principle of operational nature, the transaction for determining tax obligations to determine payable tax obligations as in transaction conditions between independent parties;

The price of associated transactions is adjusted according to independent transactions to ｄｅｃｌａｒｅ and determine payable tax amounts on the principle of not reducing taxable incomes;

Taxpayers with small scale and low tax risk are exempt from the provisions of Points a and b of this Clause and are allowed to apply the simplified mechanism in declaration and determination of associated transaction prices. "

4. Law on electronic regulations on invoices and documents

Article 89 of the Law on Tax Administration 2019 stipulates:

“Electronic invoice is an invoice with or without the code of the tax authority shown in the form of electronic data prepared by the organization or individual selling goods or providing services, recording information about the sale of goods. and provide services in accordance with the laws on accounting and tax laws electronically, including the case where invoices are generated from the cash register with electronic data transfer connection with the agency. tax."

For questions about the mandatory time to use e-invoices, enterprises shall apply the following:

In Clause 1, Article 4 of the Government's Decree No. 119/2018 / ND-CP dated September 12, 09, providing for principles of the preparation, management and use of e-invoices:

"first. When selling goods or providing services, the seller (except for business households or individuals specified in Clause 1, Article 6 of this Decree) must issue an e-invoice with the tax authority's code or no electronic invoice. code of the tax authority to be delivered to the buyer in the standard data format specified by the tax authority and must contain all contents as prescribed in this Decree, irrespective of the value of each sale or supply. service."

In Clause 2, Article 35 of the Government's Decree No. 119/2018 / ND-CP dated September 12, 09, providing for implementation as follows:

"2. The implementation of e-invoices and e-invoices bearing the tax authority's code as prescribed in this Decree is done for businesses, economic organizations, other organizations, households and individuals. business no later than November 01, 11. ”

Thus, from November 01, 11, the application of e-invoices will comply with Decree No. 2020/119 / ND-CP and Circular No. 2018/68 / TT-BTC:

Mandatory use of e-invoices from November 01, 11

Regarding the question of the question that Decree 119/2018 / ND-CP predates the Law on Tax Administration 2019, but chapter X of the Law on Tax Administration has provisions on electricity bills, so what regulations apply:

Clause 2, Article 151 of the Law on tax administration 2019 stipulates:

"Article 151. Enforcement

1. This Law takes effect on July 01, 7, except for the case specified in Clause 2020 of this Article.

2. This Law's provisions on electronic invoices and vouchers take effect from July 01, 7; Agencies, organizations and individuals are encouraged to apply regulations on electronic invoices and documents of this Law before July 2022, 01. ”

In Official Letter No. 2578 / TCT-CS dated June 23, 6, reply to Vinh Duc General Hospital Joint Stock Company as follows:

“In order to implement the Law on Tax Administration No. 38 / QH14 / 2019, the Ministry of Finance drafted the Government to ｒｅｐｌａｃｅ Decree No. 119/2018 / ND-CP on electronic invoices and documents. When the Government promulgates a Decree on electronic invoices and documents under the Law on Tax Administration No. 38 / QH14 / 2019, the provisions of the Decree on electronic invoices and documents will be complied with. ”

Thus, when there is a replacement decree, then apply accordingly, currently it is applied according to Decree 119/2018 / ND-CP on electronic invoices and documents.

5. Extend the deadline for submitting the PIT finalization dossiers

Old regulations on the time to submit a tax finalization dossier are:

The deadline for submission of tax finalization dossiers is the 90th day from the end of the calendar year, or fiscal year, for annual settlement dossiers.

New regulations on the submission time of tax finalization dossiers are:

Article 44 of the Law on Tax Administration 2019 allows:No later than the last day of the 4th month from the end of the calendar year, for personal income tax finalization dossiers of individuals directly making tax finalization.

Thus, the Law on Tax Administration 2019 has extended the deadline for submitting the PIT finalization dossier by 01 month compared to the 2006 Law on Tax Administration.

Note: This regulation applies to individuals who directly make tax finalization.

6. About the tax registration deadline

Old regulations on deadline for tax registration:

Tax registrants must make tax registration within 10 working days from the date of: + To be granted a business registration certificate or an establishment and operation license or an investment certificate; + Starting business operations for organizations not subject to business registration or households, individuals subject to business registration but not yet granted a business registration certificate.

New regulations on deadline for tax registration:

Article 30 of the Law on Tax Administration 2019 stipulates: Taxpayers must make tax registration and obtain tax codes by tax authorities before starting production and business activities or having obligations to the state budget.

7. Supplementary on tax administration agency

Article 2 of the Law on Tax Administration 2019 stipulates:

2. Tax administration agencies include:

a) Tax authorities include the General Department of Taxation, Department of Taxation, Sub-department of Taxation, Sub-department of Taxation;

b) Customs authorities include the General Department of Customs, the Customs Department, the Post-Customs Clearance Inspection Department, and Sub-department of Customs.

Thus, the Law has added the Regional Tax Department to the list of tax administration agencies. 

8. Additional content tax administration

Article 4 of the Law on Tax Administration 2019 stipulates: including 3 additional management contents as follows:

• Managing invoices and documents;
• International cooperation on tax;
• Propagating and assisting taxpayers

9. Expanding responsibility in international tax cooperation

Article 12 provides for international cooperation in taxation by tax authorities. Including additional responsibility "Implementation of tax collection support measures under international treaties to which Vietnam is a member, including:

• Request foreign tax authorities and competent agencies to assist in tax collection abroad for tax debts in Vietnam that taxpayers are obliged to pay when the taxpayer is no longer living. Vietnam;
• To support tax collection at the request of foreign tax administration agencies for overseas tax debts payable by taxpayers in Vietnam by the measure of urging tax debt collection ".