Full Checklist: Documents & Procedures for Switching to Tax Declaration for Business Households

As business scales grow, transitioning from self-employment to registering as a business household is a crucial step to formalize operations, build credibility, and expand business opportunities. However, many online shop owners and retailers are still confused about the procedures, documents to prepare, and the tax declaration process after registration.

This article will provide you with a detailed, comprehensive A-Z checklist of the necessary documents and procedures when switching to a tax-declared business household. From preparing documents, registering with tax authorities, to the regular tax declaration process – everything will be presented clearly and understandably so you can proactively implement it.

Understanding the process will not only save you time and cost but also ensure compliance with legal regulations, avoiding unnecessary risks in your business operations.

Why Switch to a Tax-Declared Business Household?

• Legalize Business Operations - Build trust with customers and partners
• Obtain Tax Identification Number - A mandatory requirement for collaborating with enterprises and companies
• Issue Valid Invoices - Serve corporate customers requiring red invoices
• Open a Business Bank Account - Professional transactions, separating personal finances
• Access Loans - Banks prioritize loans for business households with tax identification numbers
• Build a Long-Term Brand - A foundation for developing into an enterprise

Checklist of Documents to Prepare

Step 1: Registering a Business Household

Documents include:

1. ID Card/Citizen Identity Card (notarized copy)
2. Proof of Business Location:
3. Land Title Deed (if you own the property)
4. Lease Agreement (original or notarized copy)
5. Power of Attorney for location usage (if borrowing a location)
6. Application for Business Household Registration (according to the form of the Department of Planning and Investment)

Where to submit: - Business Registration Office of the provincial/district Department of Planning and Investment - Or the Public Administration Service Center (if available)

Processing time: 3-5 business days

Step 2: Register for Tax with Tax Authorities

After obtaining the Business Household Registration Certificate, you must register for tax within 10 days.

Documents include:

1. Business Household Registration Certificate (copy)
2. ID Card/Citizen Identity Card of the household head (copy)
3. Tax Registration Declaration Form (Form 01-ĐK-TCT) - Download from the General Department of Taxation website
4. Lease/Loan Agreement for Business Location (if any)

Where to submit: - District/Town Tax Department where the business location is situated - Or online registration via eTax (recommended)

Results received: - Personal Tax Identification Number (10 digits) - Notification regarding invoice usage

Download the tax registration declaration form now

Step 3: Register for Invoice Usage

Business households have 2 options:

Option 1: Electronic Invoices - Register via the General Department of Taxation's website or through an electronic invoice service provider - Cost: Free (if via General Department of Taxation) or 500,000đ - 2,000,000đ/year (via service provider)

Option 2: Paper Invoices (purchased from tax authorities) - Submit a request to purchase invoices at the District Tax Department - Cost: Approximately 50,000đ - 100,000đ for 1 booklet of 50 sheets

Regular Tax Declaration Process

Types of Taxes to Declare

1. Value Added Tax (VAT)

Declaration method: - By percentage rate: Revenue × 1% (for goods trading) or × 5% (for services) - Declaration period: Quarterly (within the first month of the following quarter) - Declaration form: 01/GTGT

2. Personal Income Tax (PIT)

Declaration method: - Rate: Revenue × 0.5% (goods trading) or × 2% (services) - Declaration period: Quarterly - Declaration form: 02/TNCN-HKD

3. Business License Tax

• Tax amount: 1,000,000đ/year (for business households)
• Payment deadline: Before January 30th annually
• Declaration form: 01/MB

How to Declare

1. Online Declaration (recommended): - Visit: https://thuedientu.gdt.gov.vn - Log in with your tax identification number - Fill in the online declaration form and submit

2. In-Person Declaration: - Bring the paper declaration form to the District Tax Department - Present relevant documents

3. Through a Tax Agent: - Cost: 500,000đ - 1,500,000đ/quarter - Convenient for busy individuals

Benefits of Switching to Tax Declaration

• Financial Transparency - Easily track revenue, expenses, and profits
• Increased Credibility - Business customers trust long-term cooperation
• Business Expansion - Can participate in bids and cooperate with large companies
• Access to Loans - Banks are more likely to approve loans with clear tax records
• Professional Management - Requires a strict sales and inventory management system

Important Notes

Regarding Deadlines

• Late declaration will be fined 400,000đ - 2,000,000đ depending on the violation
• Late tax payment: Fine of 0.03%/day on the overdue tax amount
• Incorrect declaration leading to tax deficiency: Fine from 10% - 30% of the deficient amount

Regarding Accounting Records

• Business households are not required to maintain accounting records like enterprises
• However, it is advisable to keep records of revenue and expenses for easier declaration
• Store purchase and sales invoices for at least 5 years

Regarding Conversion to a Company

• When revenue reaches from 3 billion VND/year or more, consider converting to a Sole Proprietorship or Limited Liability Company
• Business households are not permitted to open branches
• Some industries require being an enterprise (import-export, large construction...)

Conclusion

Switching to a tax-declared business household is a significant step in your business development journey. Although it may seem complicated initially with many documents and procedures, once you clearly understand the process, maintaining legal operations will become easier and bring many practical benefits.

To maximize support for your business household's operations, GTG CRM provides a comprehensive management platform, helping you manage every step from start to finish professionally:

• Multi-channel Sales Management - Integrate orders from websites, Shopee, Lazada, TikTok Shop into one place
• Automated Inventory Management - Real-time inventory updates, low stock alerts
• Shipping Management - Connect with shipping carriers, track order status
• Automated Invoice Issuance - Create electronic invoices as soon as an order is placed
• Input/Output Invoice Management - Clearly track expenses, revenue, and profits
• Standardized Closed Process - From procurement, sales, warehousing to tax declaration

With GTG CRM, you not only meet all management and tax declaration requirements but also save time, improve business efficiency, and are ready to scale up when needed.

Start today - Let GTG CRM accompany you on your journey to sustainable development!