During the course of business, do suppliers pay Ms. Gam's company display supports, sales bonuses, cash rewards, goods or purchase coupons when ordering or on holidays, Tet, etc. The company will then continue to pay these amounts to retailers.

Ms. Gam asked the tax agency to provide specific guidance on the declaration according to the list in Appendix 01-1/BK-CNKD. Every month, the company sells to 3,500 small business households and this number of customers usually does not receive VAT invoices, so how is the declaration and issuance of VAT invoices sent?

The company generalizes retail sales within a day and issues VAT invoices. At the same time, based on the VAT invoices sold in the month to make tax declarations for bonuses, sales support, sales promotion, trade discount, payment discount, cash or non-cash support for the customer. individuals are business households common to all retailers on the same declaration.

Mrs. Gam proposed to guide the tax declaration instead, tax payment on behalf of business households and individuals that she described above to help her company overcome the current difficulties and implement compliance with tax laws.

The Tax Department of Dong Ha - Cam Lo, Quang Tri province answered this question as follows:

Point dd, Clause 5, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government stipulating:

"Article 7. Tax declaration dossiers

5. Organizations and individuals that declare and pay tax on behalf of taxpayers must fully comply with regulations on tax declaration and payment as prescribed for taxpayers in this Decree consists of:

… dd) Organizations that pay bonuses, support to achieve sales, sales promotions, trade discounts, payment discounts, support only in cash or not for individuals being business households and individuals If the business pays tax by the presumptive method, the organization is responsible for declaring tax on behalf of and paying tax on behalf of the individual according to regulations.

At Point a, Clause 1, Article 16 of Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance guiding:

"Article 16. Tax administration for organizations and individuals that declare and pay tax on behalf of individuals

1. Tax return file

a) Monthly and quarterly tax declaration dossiers for organizations that declare tax on behalf of individuals or pay taxes on behalf of individuals in case the individual cooperates with the organization; organizing payments to individuals who achieve sales; the organization is the owner of the e-commerce trading floor; organization in Vietnam that is a partner of an overseas digital platform provider (without a permanent establishment in Vietnam) makes income payments to individuals specified at Point 8.4, Appendix I - List of documents Tax declarations issued together with Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, specifically as follows:

- Tax return for business households and individuals, made according to form No. 01/CNKD attached to this Circular;

- Appendix A detailed list of business households and individuals (applicable to organizations and individuals that declare tax on behalf of individuals, pay taxes on behalf of individuals; individuals that cooperate in business with organizations; organizations that pay taxes). for individuals who achieve sales, organizations that are owners of e-commerce transaction properties; organizations in Vietnam that are partners of overseas digital platform providers) according to form No. 01-1/BK-CNKD promulgated together with this Circular;

- A copy of the business cooperation contract (if it is the first tax return of the contract). The tax authority has the right to request the presentation of the original for comparison and confirmation of the accuracy of the copy compared with the original.

In Clause 1, Article 4 of Decree No. 119/2018/ND-CP dated September 12, 2018 of the Government stipulating:

"Article 4. Principles of making, managing and using e-invoices

1. When selling goods or providing services, the seller (except for business households and individuals specified in Clause 6, Article 12 of this Decree) must issue an electronic invoice with the tax authority's code or an electronic invoice without the tax authority's code to deliver to the buyer according to the standard data format prescribed by the tax authority and must fully record the contents as prescribed in this Decree, regardless of the value of each sale of goods, Service Provider…".

From the above regulations and guidelines, Ms. Gam's company does the following:

- When selling goods: Make invoices according to the provisions of Clause 1, Article 4 of Decree No. 119/2018/ND-CP dated September 12, 2018 of the Government.

- When there is payment of bonuses, sales support, sales promotion, trade discount, payment discount, cash or non-cash support for individuals being business households or individuals Business tax payment according to the flat method: Make tax declaration and pay tax instead according to form No. 01/CNKD and Appendix form No. 01-1/BK-CNKD issued together with Circular No. 40/2021/TT-BTC dated 1/6/2021 of the Ministry of Finance with all the criteria as prescribed.

During the implementation if you have any problems, please contact the Propaganda Team - Taxpayer Support - Registration - Other collection, phone number: 0233.3555649; Tax Inspection Team No. 1, phone number: 0233.3855648 for specific instructions.

Dong Ha - Cam Lo Area Tax Department answered for Ms. Gam's company to know and implement.

According to the Government Newspaper