Is failing to present invoices related to determining the amount of tax payable subject to tax imposition in Vietnam?

Is failing to present invoices related to determining the amount of tax payable subject to tax imposition in Vietnam?

Based on Point c, Clause 1, Article 50 of the Law on Tax Administration 2019, which regulates the cases subject to tax imposition, as follows:

Tax imposition for taxpayers in case of violations of tax laws

1. Taxpayers are subject to tax imposition when they fall into one of the following cases of tax law violations:

a) Failure to register as a taxpayer, failure to file taxes, failure to submit additional tax records as requested by the tax authority, or incomplete, dishonest, and inaccurate tax declarations;

b) Failure to reflect or incomplete, dishonest, and inaccurate reflection of data in accounting books to determine tax obligations;

c) Failure to present accounting books, invoices, documents, and necessary materials related to the determination of the tax payable within the stipulated time;

d) Non-compliance with tax inspection and audit decisions as prescribed;

dd) Purchasing, selling, exchanging, and accounting for goods' and services' values not according to the usual market transaction values;

e) Purchasing, exchanging goods using illegal invoices, illegally using invoices where the goods are confirmed by the authority and have been declared for tax revenue;

g) Indications of fleeing or dispersing assets to evade tax obligations;

h) Engaging in transactions not consistent with economic substance or factual occurrence to reduce the taxpayer's tax obligations;

i) Non-compliance with declaration obligations, determination of transfer pricing, or failure to provide information as regulated concerning tax administration for businesses involved in transfer pricing.

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Thus, if a taxpayer does not present invoices related to determining the amount of tax payable within the stipulated time, they will be subject to tax imposition.

Is failing to present invoices related to determining the amount of tax payable subject to tax imposition in Vietnam? (Image from the Internet)

Which authority is competent to impose tax in Vietnam?

Based on Clause 1, Article 16 of Decree 126/2020/ND-CP, which regulates the competent authority for tax imposition, as follows:

Authority, procedures, decisions on tax imposition

1. Authority for tax imposition

General Director of the General Department of Taxation; Director of the Tax Department; Head of the Tax Sub-department have the authority to impose taxes.

2. Procedures for tax imposition

a) When imposing taxes, the tax authority must notify the taxpayer in writing about the tax imposition and issue a tax imposition decision. The tax imposition decision must state the reason for tax imposition, the basis for tax imposition, the imposed tax amount, and the deadline for tax payment.

b) In case the tax authority imposes taxes through tax inspection and audit, the reason for tax imposition, the basis for tax imposition, the imposed tax amount, and the tax payment deadline must be recorded in the tax inspection, audit minutes, and tax handling decision of the tax authority.

c) In case the taxpayer is subject to tax imposition as regulated, the tax authority shall impose administrative penalties and calculate late tax payment interest as prescribed by law.

3. Tax imposition decision

a) When imposing taxes, the tax authority must issue a tax imposition decision according to Form No. 01/ADT in Appendix III attached to this Decree and simultaneously send it to the taxpayer within 3 working days from the date of signing the tax imposition decision;

In case the taxpayer is subject to tax payment as notified by the tax authority, the tax authority is not required to issue a tax imposition decision as regulated in this clause.

b) The taxpayer must pay the imposed tax amount according to the tax handling decision of the tax management authority. If the taxpayer disagrees with the tax amount imposed by the tax authority, the taxpayer must still pay the tax but has the right to request the tax authority to explain, or to file a complaint or lawsuit regarding the tax imposition.

According to the above regulation, it can be seen that the authority competent to impose tax is the General Director of the General Department of Taxation; Director of the Tax Department; Head of the Tax Sub-department.

What is the basis for tax imposition in Vietnam?

According to the provision at Point b, Clause 1, Article 15 of Decree 126/2020/ND-CP, the basis for tax imposition includes the following:

- The database of the tax management authority and commercial databases;

- Comparison of the tax payable of business establishments of the same goods, sector, scale in the locality; in case there is no information about the goods, sector, scale of the business establishment in the locality, comparison with another locality is made;

- Documents and effective inspection, audit results;

- Tax collection rate on revenue for each field, sector, as regulated by tax law.