What are handling procedures for results of tax audit on tax authorities’ premises in Vietnam?

What is a Tax Dossier?

According to Clause 9, Article 3 of the Tax Administration Law 2019, a tax dossier is a file containing taxpayer registration, tax declarations, tax refunds, tax exemptions, tax reductions, exemption from late payment interest, waiver of late payment interest, tax payment extensions, installment payment of tax debts, non-collection of tax; customs documentation; dossiers for deferral of tax debts; dossiers for the cancellation of tax debts, late payment interest, and penalties.

What are handling procedures for results of tax audit on tax authorities’ premises in Vietnam? (Image from the Internet)

Which tax dossier shall be audited on tax authorities’ premises in Vietnam?

Based on Article 109 of the Tax Administration Law 2019, the provisions are as follows:

Tax Audit at on tax authorities’ premises

1. A tax audit at on tax authorities’ premises conducted by the tax authority shall be performed on the following tax dossiers:

a) A tax audit at on tax authorities’ premises is carried out based on the tax dossier of the taxpayer to assess the completeness and accuracy of the information and documents in the tax dossier, and the taxpayer's compliance with tax laws. Tax officials assigned to audit taxes shall analyze tax dossiers based on the level of tax risk classified from the information technology database or as assigned by the head of the tax authority to propose an auditing plan at on tax authorities’ premises or handle as prescribed in Clause 2 of this Article;

b) A tax audit at the headquarters of the customs authority is carried out to check, compare, and verify the contents in the tax dossier with relevant information, documents, and tax laws, as well as the actual inspection results of goods when necessary for export and import goods. In case of post-clearance audit at the headquarters of the customs authority, it shall be performed according to customs laws.

2. The handling of tax audit results at on tax authorities’ premises is stipulated as follows:

a) In case of an audit during customs clearance procedures that detects violations leading to tax deficiency or tax evasion, the taxpayer must pay the full tax amount and shall be sanctioned as prescribed by this Law and other relevant legal provisions;

b) If the tax dossier has contents that need clarification involving the payable tax amount, tax-exempt amount, tax-reduced amount, carry-forward deductible tax amount, refunded tax amount, or non-collected tax amount, the tax authority shall notify and request the taxpayer to explain or provide additional information and documents. If the taxpayer has explained and provided supplementary information, documents proving the declared tax amount is correct, the tax dossier shall be accepted; if there is insufficient basis to prove the declared tax amount is correct, the tax authority shall request the taxpayer to supplement their declaration.

In case the taxpayer fails to provide an explanation, supply information, documents, or submit supplementary tax dossiers by the deadline specified in the tax authority's notice, or provides inaccurate explanation and supplementary tax dossiers, the head of the tax authority shall determine the payable tax amount or issue a decision to audit taxes at the taxpayer's headquarters or use it as a basis to plan audit and inspection according to risk management principles in tax administration.

What are handling procedures for results of tax audit on tax authorities’ premises in Vietnam?

According to Clause 2, Article 109 of the Tax Administration Law 2019, the handling of tax audit results at on tax authorities’ premises is stipulated as follows:

- In case of an audit during customs clearance procedures that detects violations leading to tax deficiency or tax evasion, the taxpayer must pay the full tax amount and shall be sanctioned as prescribed by this Law and other relevant legal provisions;

- If the tax dossier has contents that need clarification involving the payable tax amount, tax-exempt amount, tax-reduced amount, carry-forward deductible tax amount, refunded tax amount, or non-collected tax amount, the tax authority shall notify and request the taxpayer to explain or provide additional information and documents. If the taxpayer has explained and provided supplementary information, documents proving the declared tax amount is correct, the tax dossier shall be accepted; if there is insufficient basis to prove the declared tax amount is correct, the tax authority shall request the taxpayer to supplement their declaration.

In case the taxpayer fails to provide an explanation, supply information, documents, or submit supplementary tax dossiers by the deadline specified in the tax authority's notice, or provides inaccurate explanation and supplementary tax dossiers, the head of the tax authority shall determine the payable tax amount or issue a decision to audit taxes at the taxpayer's headquarters or use it as a basis to plan audit and inspection according to risk management principles in tax administration.