Shall an enterprise be imposed tax after being penalized twice for for invoice-related offences in Vietnam?

Shall an enterprise be imposed tax after being penalized twice for for invoice-related offences in Vietnam?

Pursuant to Clause 1, Article 50 of the Law on Tax Administration 2019, it is regulated as follows:

Tax liability imposition in case of tax offences

1. A taxpayer shall be subject to tax liability imposition when falling into any of the following cases of tax offences:

a) No taxpayer registration, no tax declaration, no supplementation of tax dossiers as required by the tax authority, or incomplete, untruthful, and inaccurate tax declaration concerning the tax base;

b) Failing to record or inadequately, untruthfully, and inaccurately reflecting figures in the accounting books for determining tax obligations;

c) Failing to present accounting books, invoices, documents, and necessary materials related to determining the payable tax amount within the prescribed timeframe;

d) Failing to comply with tax inspection, tax examination decisions as prescribed;

đ) Buying, selling, exchanging, and accounting for the value of goods and services not according to common market transaction values;

e) Buying, exchanging goods using illegal invoices, or illegal use of invoices while goods are actually available as determined by competent authorities and have been declared for tax revenue;

g) Exhibiting signs of fleeing or dispersing assets to avoid fulfilling tax obligations;

h) Engaging in transactions that do not reflect the actual economic nature, not consistent with the actual arising to reduce the tax obligation of the taxpayer;

i) Non-compliance with regulations on the obligation to declare and determine transfer pricing transactions or failing to provide information according to the regulations on tax administration for enterprises engaged in transfer pricing transactions.

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Therefore, if merely penalized for for invoice-related offences, an enterprise will not be subject to tax liability imposition, unless the entity fails to present accounting books, invoices, documents, and necessary materials related to determining the payable tax amount within the prescribed timeframe, which would result in tax liability imposition.

Shall an enterprise be imposed tax after being penalized twice for for invoice-related offences in Vietnam? (Image from the Internet)

Vietnam: Shall a taxpayer be imposed tax in case of failing to calculate the amount of tax payable themselves?

According to Point g, Clause 1, Article 52 of the Law on Tax Administration 2019, it is stipulated as follows:

Tax liability imposition for Exported and Imported Goods

1. The customs authority shall determine tax on exported and imported goods in the following cases:

a) The taxpayer relies on illegal documents for tax declaration, tax calculation; does not declare or declares inaccurately, incompletely the information related to determining tax obligations;

b) Beyond the prescribed timeframe, the taxpayer does not provide, refuses, or delays, extends the provision of dossiers, accounting books, documents, certificates, data, figures related to accurately determining the payable tax amount as prescribed;

c) The taxpayer fails to prove, explain or fails to explain within the prescribed timeframe the contents related to determining tax obligations according to the provisions of law; does not comply with the customs authority's inspection, examination decisions;

d) The taxpayer does not reflect or inadequately, untruthfully, inaccurately reflects figures in the accounting books to determine tax obligations;

đ) The customs authority has sufficient evidence, grounds to determine that the declared value is not consistent with the actual transaction value;

e) Transactions are conducted not in accordance with the economic nature, not consistent with the actual arising, affecting the payable tax amount;

g) The taxpayer is unable to self-calculate the payable tax amount;

h) Other cases discovered by the customs authority or other agencies indicate incorrect tax declaration and calculation as per legal provisions.

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Therefore, the regulation still guides customs authorities to determine tax for exported and imported goods in the above-stated cases, including cases where taxpayers are unable to calculate the payable tax amount.

What are cases where separate elements relevant to determination of tax payable are imposed in Vietnam?

Pursuant to Clause 3, Article 50 of the Law on Tax Administration 2019, it is regulated regarding taxpayers being determined for each elements relevant to determination of tax payable in the following cases:

- Through checking tax declaration dossiers, the tax authority has grounds to believe that the taxpayer has not fully or accurately declared the factors forming the basis for determining the payable tax amount, and has requested the taxpayer to supplement but the taxpayer does not supplement as required by the tax authority;

- Through checking accounting books, invoices, and documents related to determining the payable tax amount, the tax authority has grounds to prove that the taxpayer inaccurately and untruthfully accounts for the factors related to determining the payable tax amount;

- Accounting for the selling prices of goods and services inconsistent with the actual payment prices resulting in a reduction of the tax calculation revenue, or accounting for the purchasing prices of goods, raw materials for production, business not according to the actual payment prices suitable with the market leading to increased costs, increased deductible value-added tax, and reduced payable tax obligations;

- The taxpayer submits a tax declaration dossier but cannot determine the factors forming the basis for determining the tax base or can determine the factors forming the basis for determining the tax base but cannot self-calculate the payable tax amount.