What should a business determined to be ‘not operating at the address’ do?

Status 06 on the tax management system is understood as the taxpayer not operating at the registered address. Being placed in status 06 may prevent businesses from using tax codes in economic transactions, as well as making electronic invoices. This business representative may have his or her exit postponed if the tax code is not restored after 120 days.

According to the instructions of Hanoi City Tax, when determined to be “not operating at the registered address”, businesses need to determine whether to continue doing business or not to carry out corresponding procedures. Which option to choose will depend on the operating situation of the business.

“The important thing is not to let status 06 prolong. Taxpayers need to clearly identify their needs and handle them properly,” the tax agency noted.

If you want to continue working, Enterprises need to carry out procedures to restore their tax code.

First of all, the enterprise checks the legal status, determines the actual operating address and reviews outstanding declaration, tax and invoice obligations.

After that, the legal representative or authorized person submits an application for tax code restoration at the directly managing tax agency. The dossier includes a written request for tax code restoration according to the form.

The tax authority will review the declaration, tax and invoice obligations, and at the same time check and verify the reality at the registered address. Enterprises need to coordinate in the process of verifying and completing outstanding obligations. These obligations may include submitting additional tax declarations, tax debt, late payment, fines and other amounts according to notices or decisions of competent authorities.

After the enterprise meets the conditions, the tax authority restores its tax code and updates its operating status.

If you do not continue doing business, Enterprises need to carry out procedures for dissolution or termination of operations. At the same time, taxpayers must complete outstanding obligations, including tax declaration documents, invoice processing, full payment of taxes, late payment interest, fines and related obligations.

After the obligations are completed, the tax authority compares them to carry out procedures for terminating operations according to regulations.

Currently, the tax industry is implementing a campaign to clean taxpayer data. About 620,000 businesses are under this review, of which 292,000 units have stopped operating, have not yet completed dissolution and more than 325,000 companies are no longer operating at their registered addresses.