Decision No. 1271/TC-QĐ-CĐKT promulgates the accounting regime for individual households engaged in business operations.

Pursuant to …;

Regarding the issuance of accounting regulations for individual households engaged in business operations

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THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and agencies at the ministerial level;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Accounting and Statistics Law (announced pursuant to Decision No. 06-LCT/HĐN dated May 20, 1988 of the State Council) and the Regulations on the Organization of State Accounting issued pursuant to Decree No. 25-HĐBT dated March 18, 1989 of the Council of Ministers (now the Government).

To meet the requirements of economic and financial management reform; based on the proposal of the Director of the Accounting System Department.

Pursuant to …;:

Article 1. Attached hereto is the "Accounting Regulation for Individual Households Engaged in Business Operations."

Article 2. The Accounting Regulation for Individual Households Engaged in Business Operations shall apply to all production and business households that have not met the conditions to establish private enterprises operating in industrial production, forestry and agriculture, construction, transportation, resource extraction, aquaculture, trade, catering, services, and other cultural, educational, training, medical care, consulting, repair, entertainment, and leisure services (hereinafter referred to as "business households").

Article 3. The Accounting Regulation for Individual Households Engaged in Business Operations shall be uniformly implemented throughout the country starting January 1, 1996, and shall replace the Accounting Regulation for Production and Business Outside State Ownership issued pursuant to Decision No. 598 TC/CĐKT dated December 8, 1990 of the Ministry of Finance.

Article 4. Provincial Tax Departments shall coordinate with relevant sectors at the local level to assist provincial People's Committees in guiding and inspecting business households in the implementation of this accounting regulation.

Article 5. Tax authorities shall base their tax calculations on the accounting records of business households. If it is found that business households are not strictly and fully implementing the Accounting Regulation for Individual Households Engaged in Business Operations, the tax authority has the right to determine the taxable revenue and taxable income, and simultaneously impose administrative penalties for violations of the accounting regulations and for tax evasion as prescribed by law.

Article 6. Business households, Chairmen of Provincial People's Committees, Director of the General Tax Department, Director of the Accounting System Department shall be responsible for guiding, inspecting, and enforcing this Decision.

REGULATIONS

Accounting for Individual Households Engaged in Business Operations
(Issued pursuant to Decision No. 1271TC/QĐ/CĐKT dated December 14, 1995 of the Minister of Finance)

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Chapter I

GENERAL PROVISIONS

Article 1. All business households that have not met the conditions to establish private enterprises operating in industrial production, forestry and agriculture, construction, transportation, resource extraction, aquaculture, trade, catering, service industries such as hotels, culture, tourism, education, training, medical care, consulting, repair, entertainment, and leisure services (collectively referred to as "Business Households") with monthly revenue exceeding the average taxable threshold specified in Article 14 of the Business Income Tax Law (announced pursuant to Resolution No. 270B-NQ/HĐNN8 dated August 8, 1990 and amended and supplemented pursuant to Resolution No. 427-NQ/HĐNN8 dated September 10, 1991 of the State Council) must implement this accounting regulation.

Article 2. The accounting of business households must ensure the reflection of the following main contents:

- Quantity and value of assets, materials, capital, debts, and labor used in production and business activities.

- Quantity and value of materials and goods purchased and sold.

- Production and business costs such as material costs, depreciation of fixed assets, labor costs, and other expenses.

- Quantity and value of finished products, completed works, and provided services.

- Results of production and business activities, payments to the state, and distribution of results.

Article 3. The accounting of business households must record all economic and financial activities fully, promptly, and truthfully. All economic and financial transactions must be recorded completely in accounting vouchers. All figures recorded in ledgers and reports must be supported by valid vouchers. The preparation of vouchers and recording in ledgers must be done on the date of occurrence. At the end of each month, quarter, and year, the ledgers must be closed, and tax declaration forms must be prepared according to the decision.

Article 4. The recording of accounting vouchers in business households must use common script, numerals, and units of measurement as prescribed to reflect materials, assets, costs, results, and distribution of business results. In terms of value, the unit of measurement is "Vietnamese Dong"; in terms of physical quantity, the unit of measurement is the officially recognized unit of measurement by the state (such as: piece, kilogram, ton, meter, square meter, cubic meter, liter).

Article 5. Accounting ledgers of business households must be bound into volumes, numbered sequentially, and stamped with the seal of the tax authority between pages. The cover must clearly indicate the name of the household, business address, ledger name, page number, opening date, and the name of the person keeping and recording the ledger.

- At the beginning of the year or when starting to register for production and business operations, business households must open new accounting ledgers, prepare a list of ledgers, and register with the district or county tax authority.

- Daily, entries must be made in the relevant ledgers based on accounting vouchers.

- At the end of each month, quarter, and year, totals must be calculated, sales revenue and provided services must be determined, and reconciliations must be made between ledgers; accounting figures must be reconciled with actual cash balances and inventory levels.

At the start of the new fiscal year, when old ledgers are exhausted, new ledgers must be opened, and related figures must be transferred from old ledgers to new ledgers.

Article 6. All entries on vouchers and ledgers must be made with non-fading ink, without leaving blank lines, abbreviations, interlineations, overwriting, or erasures. If there is an error, it must be crossed out with a single line, the correct figure or word must be written above, and the person making the correction must sign next to it. If something is omitted, it must be added above the omission, and the person adding it must sign next to it.

- Business households must appoint personnel knowledgeable in accounting to keep and record ledgers. Ledgers, vouchers, and other accounting documents must be organized, preserved, and stored according to the prescribed retention period in the accounting document preservation regulations.

Chapter II

ACCOUNTING VOUCHERS

Article 7. Accounting vouchers of business households include:

- External vouchers: These are vouchers received by the business household from external agencies, economic organizations, and individuals such as tax receipts, notification letters, debt notices, payment orders, checks, receipt slips, confirmation slips, various types of invoices, etc.

- Vouchers created by the business household: Include sales invoices, service invoices, freight invoices, warehouse entry forms, warehouse exit forms, attendance sheets, and other related vouchers for other economic transactions.

Article 8. All economic transactions occurring at the business household must be recorded on accounting vouchers, and all figures recorded in the accounting books must be supported by original vouchers. Accounting vouchers can only be prepared once, accurately reflecting the time and place of the economic transaction by using carbon paper to print multiple copies. Depending on the nature of the event and the management requirements of the State, accounting vouchers must be prepared according to prescribed models (mandatory vouchers). On the basis of guidance criteria, business households may apply appropriate vouchers that suit their production and business characteristics.

Legitimate accounting vouchers are those that accurately reflect actual economic financial transactions and include the following elements:

- The name, date, and numerical data of the voucher.

- The name and address of the business household issuing the voucher.

- The name and address of the unit or individual receiving the voucher.

- A summary of the content of the economic transaction.

- The name, brand, specifications, quality, quantity, unit price, and total amount of each item of material, product, goods, or service.

- The total amount in both figures and words.

- The signature of the person responsible for the accuracy and truthfulness of the economic transaction.

Article 9. Depending on the characteristics of production and business activities, business households must use the following vouchers:

1- Uniform mandatory vouchers:

- Sales invoice (service) Model 01b-BH

- Freight invoice Model 03-BH

- Invoice for gold, silver, precious stones Model 09-BH

- Invoice for completed basic construction volume Model 10-BHa

- Rental invoice Model 12-BHa

- Sales slip Model 13-BHa

- Various tickets (train and bus tickets, entertainment tickets, parking tickets, storage tickets, etc.).

All types of invoices and related vouchers for selling goods, providing labor services, and collecting payments must be uniformly printed and issued by the Ministry of Finance.

2- Guidance vouchers:

In cases where business households engaged in services keep track of the working days of hired workers and frequently engage in the purchase and sale of goods and materials, they will also use the following additional vouchers:

- Attendance sheet Model 01-LĐTL

- Material entry form Model 01-VT

- Material exit form Model 02-VT

- Internal transportation and material exit form Model 03-VT.

Business households involved in consignment or storage services will use the following additional forms:

- Consignment and storage receipt form Model 09-VTa

- Settlement sheet for consigned and stored goods Model 14-BHa.

Vouchers numbered 01b-BH, 03-BH, 09-BH, 01-LĐTL, 01-VT, 02-VT, 03-VT are based on the accounting voucher system established by Decision No. 1141-TC/CĐKT dated November 1, 1995 of the Ministry of Finance.

The format and method of preparing accounting vouchers are detailed in Appendix 1.

Chapter III

ACCOUNTING LEDGERS

Article 10. Business households mentioned in Article 1 shall implement single-entry bookkeeping and are required to maintain the following ledgers:

- Purchase journal Model S 01

- Sales journal Model S 02

- Inventory journal for materials, products, and goods Model S 03b

- Monthly inventory valuation sheet for materials, products, and goods Model S 03a

- Production and business expense ledger Model S 04.

For small-scale production and business households approved by the tax authority, the following models may be used:

- Purchase journal Model S 01

- Sales journal Model S 02

- Monthly inventory valuation sheet for materials, products, and goods Model S 03a.

In addition to the mandatory ledgers, business households may maintain additional ledgers such as "Cash and Bank Deposit Ledger" Model S 05, "Accounts Receivable and Payable Ledger" Model S 06, and "Labor Cost Payment Ledger" Model S 07.

Article 11. Ledgers, vouchers, and accounting documents must be kept at the production and business premises to facilitate daily recording and inspection by state authorities.

The format and method of recording ledgers are detailed in Appendix 2.

Article 12. At the end of each month, business households must conduct an inventory of remaining materials, products, and goods in stock and on display, value of unfinished products on production lines, prepare a monthly inventory valuation sheet (format and preparation method detailed in Appendix 2), and file a tax declaration as prescribed with the district or county tax authority before the fifth day of the following month.

ChươSection IV

ASSET INVENTORY AND ACCOUNTING AUDIT

Article 13. At the end of each year, prior to closing the accounting books, business households must conduct an asset inventory to ensure that the figures in the accounting books match the actual situation.

Article 14. Business households are subject to accounting audits by the tax authority and other competent state agencies.

The content of the accounting audit includes checking the recording, calculation, and reflection on accounting vouchers and ledgers; verifying compliance with financial and accounting regulations and fulfillment of obligations to the State.

The head of the business household must comply with the audit instructions of the authorized agency and provide all necessary data and documents for a smooth audit process.

Chapter V

IMPLEMENTATION

Article 15. The head of the business household must strictly adhere to the provisions of this accounting system.

If business households record or reflect accounting data inaccurately or untruthfully, the tax authority has the right not to accept the figures in the accounting books for tax purposes but instead base the assessment on investigative materials. The tax authority will determine the taxable revenue and income. If the head of the business household disagrees with the determined taxable revenue and income, they have the right to appeal to a higher-level tax authority for resolution. During the appeal period, the head of the business household must pay taxes based on the determined taxable revenue and income. After the higher-level tax authority issues its formal opinion, the tax already paid will be adjusted accordingly.

Article 16. All levels of authority (districts, counties, towns, villages) and functional sectors such as public security, finance, market management, etc., shall be responsible for coordinating with the tax sector to guide the inspection and handling of households deliberately failing to comply with the implementation of this accounting system; all acts of concealing the aforementioned wrongful conduct of households shall be dealt with according to the law.