IS IT PERMITTED TO USE PERSONAL IDENTIFICATION NUMBERS INSTEAD OF BUSINESS TAX CODES ON INVOICES ACCORDING TO CURRENT REGULATIONS?

Is it permissible to use personal identification numbers instead of business tax codes on invoices according to current regulations? Let’s find out more with Pham Consult!

Is it permissible to use personal identification numbers instead of business tax codes on invoices according to current regulations?

Based on Clause 7, Article 35 of the 2019 Tax Administration Law, the following is stipulated:

Use of tax codes

7. When personal identification numbers are issued to the entire population, the personal identification number shall be used instead of the tax code.

At the same time, based on Article 5 of Circular 86/2024/TT-BTC, it is stipulated:

Tax Code Structure

5. The personal identification number of Vietnamese citizens issued by the Ministry of Public Security in accordance with the law on identity cards is a 12-digit natural number used instead of the tax code of individual taxpayers and dependents as stipulated in points k, l, and n of Clause 2, Article 4 of this Circular; at the same time, the personal identification number of the representative of a household, business household, or individual business is also used instead of the tax code of that household, business household, or individual business.

Based on the above regulations, the representative of a business household is allowed to record the personal identification number instead of the business household tax code on invoices.

Does a business household that temporarily suspends business operations have to declare taxes?

Based on Article 2 of the 2019 Tax Administration Law, the following is stipulated:

Applicable Subjects

1. Taxpayers include:
2. a) Organizations, households, business households, and individuals paying taxes according to the provisions of tax law;
3. b) Organizations, households, business households, and individuals paying other revenues belonging to the state budget;
4. c) Organizations and individuals withholding tax.

In addition, Clause 2, Article 4 of Decree 126/2020/ND-CP stipulates as follows:

Tax management for taxpayers during periods of temporary suspension of operations

2. During the period when taxpayers temporarily suspend operations:
3. a) Taxpayers are not required to submit tax declarations, except in cases where the taxpayer temporarily suspends operations for less than a full month, quarter, calendar year, or fiscal year, in which case they must still submit monthly and quarterly tax declarations; and annual tax settlement documents.
4. b) Household businesses and individual business owners paying taxes under the lump-sum method who temporarily cease operations will have their lump-sum tax obligations reassessed by the tax authorities in accordance with the regulations of the Minister of Finance.
5. c) Taxpayers are not allowed to use invoices and are not required to submit reports on invoice usage. However, if the tax authorities approve the use of invoices in accordance with the law on invoices, the taxpayer must submit tax declarations and reports on invoice usage as required.
6. d) Taxpayers must comply with decisions and notices from tax authorities regarding debt collection, enforcement of administrative decisions on tax management, inspections and audits of compliance with tax laws, and handling of administrative violations in tax management as stipulated in the Law on Tax Administration.

Therefore, during the period when a business household temporarily suspends operations, it is not required to submit tax declarations, except in cases where the business household temporarily suspends operations for less than a full month, quarter, calendar year, or fiscal year; in such cases, it must still submit monthly and quarterly tax declarations; and annual tax settlement documents.

Taxpayers are not allowed to use invoices and are not required to submit reports on invoice usage. However, if the taxpayer is approved by the tax authority to use invoices in accordance with the law on invoices, they must submit tax declarations and reports on invoice usage as required.

What are the tax exemptions for businesses formed from business households in 2026 according to Decree 320?

Based on Clause 4, Article 21 of Decree 320/2025/ND-CP, the tax exemption for enterprises formed from household businesses in 2026 is as follows:

Enterprises newly established from household businesses (including individuals converting to enterprises) are exempt from corporate income tax for two consecutive years from the date they have taxable income, specifically:

+ Subject to a tax rate of 15% applicable to enterprises with total annual revenue not exceeding 3 billion VND.

+ A 17% tax rate applies to businesses with total annual revenue from over 3 billion VND to no more than 50 billion VND.

– The tax exemption period stipulated in this clause is calculated continuously from the first year the business has taxable income. If there is no taxable income in the first three years, starting from the first year with revenue, the tax exemption period is calculated from the fourth year.

If, in the first tax period, the business has a production and business period eligible for tax exemption of less than 12 months, the business may choose to enjoy the tax exemption immediately in that tax period or register with the tax authority to begin the tax exemption from the next tax period. If the business registers the tax exemption period for the next tax period, it must determine the amount of tax payable for the first tax period to be paid to the state budget as prescribed;

– After the tax exemption period stipulated in this clause, if the enterprise implements an investment project in the tax-incentive sectors, professions, and geographical areas specified in Article 18 of Decree 320/2025/ND-CP, it shall continue to enjoy the corresponding preferential tax rates (preferential tax rates and tax exemptions/reductions) as stipulated in Articles 19 and 20 of Decree 320/2025/ND-CP.

After the tax exemption period and the tax incentive period (if any) stipulated in this clause, the enterprise shall apply the corporate income tax rate as stipulated in Clauses 2 and 3 of Article 11 of Decree 320/2025/ND-CP;

– Household businesses and individual businesses as stipulated in this clause must meet the conditions of being registered and operating in accordance with the law, and have had continuous production and business activities for at least 12 months up to the date of initial issuance of the Business Registration Certificate;

– Newly established businesses eligible for tax exemptions and incentives under this clause are those registering for the first time, excluding cases where the legal representative (except when the legal representative is not a contributing member), general partner, or the person with the highest capital contribution has previously participated in business activities as the legal representative, general partner, or person with the highest capital contribution in existing or dissolved businesses, but less than 12 months have passed since the dissolution of the old business to the establishment of the new business.