Headlines 14/06/2022 16:43 CH

Violation signs in invoice management in Vietnam

Lê Ánh

On June 01, 2022, the General Department of Taxation of Vietnam promulgated Official Dispatch No. 1873/TCT-TTKT on strengthening the review and examination to detect taxpayers prone to commit acts related to invoices and prevention of tax refund fraud.

According to the Official Dispatch, the General Department of Taxation requires tax authorities at all levels to:

Comprehensively carry out measures such as implementation, dissemination, organization, consolidation, evaluation and exchange of experiences in signs and acts of violation in invoice management including issuance, use, purchase and sale of illegal invoices.

Organize review and evaluation to classify enterprises prone to commit acts related to invoices through suspected signs.

Some signs and acts of violation specified in the Appendix of Official Dispatch No. 1873/TCT-TTKT dated June 01, 2022 include:

+ An enterprise which has high revenue and input and output VAT but does not incur tax, has negative VAT for many tax periods;

+ An enterprise which does not have fixed assets or has extremely low fixed asset value;

+ An enterprise which has suspicious bank transactions (same-day deposit and withdrawal);

+ An enterprise whose employees are not commensurate with its size and lines of operation;

+ An individual acts as legal representative who has established and managed numerous enterprises; etc.

For more details, see Official Dispatch No. 1873/TCT-TTKT .

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