What are regulations on tax dossier supplementation when input invoices are declared not in the correct period and incorrect declaration in the audited period in Vietnam?

What are regulations on tax dossier supplementation when input invoices are declared not in the correct period and incorrect declaration in the audited period in Vietnam?

Pursuant to Article 47 of the Law on Tax Administration 2019, the regulation on the tax dossier supplementation is as follows:

Tax dossier supplementation

1. If a taxpayer discovers an error or omission in the tax declaration dossier submitted to the tax authority, they are allowed to supplement the tax declaration dossier within 10 years from the expiration date for submitting the tax declaration dossier of the tax assessment period containing the error or omission, but before the tax authority or competent authority announces the inspection or audit decision.

2. If the tax authority or competent authority has announced a tax inspection or audit decision at the taxpayer's headquarters, the taxpayer is still allowed to supplement the tax declaration dossier. The tax authority shall impose administrative penalties for tax management violations as stipulated in Articles 142 and 143 of this Law.

3. After the tax authority or competent authority has issued a conclusion or tax handling decision post-inspection or audit at the taxpayer's headquarters, the supplementation of the tax declaration dossier is regulated as follows:

a) The taxpayer is allowed to supplement the tax declaration dossier in cases where it increases the tax payable amount, decreases the tax deductible amount, or decreases the exempted, reduced, or refunded tax amount and is subjected to administrative penalties for tax management violations as stipulated in Articles 142 and 143 of this Law;

b) If the taxpayer discovers errors or omissions in the tax declaration dossier that, upon supplementation, decrease the tax payable amount or increase the tax deductible amount, raise the exempted, reduced, or refunded tax, the case is handled according to the tax appeal resolution regulations.

4. The dossier for tax declaration supplementation includes:

a) Supplementary declaration form;

b) Statement explaining the supplementation and relevant documents.

5. For exported and imported goods, the tax dossier supplementation is implemented according to the customs law.

Thus, if a company discovers errors or omissions in the tax declaration that reduce the tax payable or increase the tax deductible amount, or raise the exempted, reduced, or refunded tax, the company does not supplement the tax declaration dossier but follows the regulations on tax appeal resolution.

What are regulations on tax dossier supplementation when input invoices are declared not in the correct period and incorrect declaration in the audited period in Vietnam? (Image from the Internet)

Is incorrect declaration of imports without making supplementation after customs clearance is granted considered tax evasion in Vietnam?

Pursuant to Article 143 of the Law on Tax Administration 2019, it is regulated as follows:

Tax Evasion Acts

1. Not submitting taxpayer registration dossiers; not submitting tax declaration dossiers; submitting tax declaration dossiers more than 90 days past the submission deadline or the extended submission deadline according to the provisions of this Law.

2. Not recording in accounting books the revenue related to determining the tax payable amount.

3. Not issuing invoices when selling goods or services in accordance with legal regulations or recording invoice values lower than the actual payment value of goods or services sold.

4. Using illegal invoices and documents or unlawfully using invoices to account for input goods and raw materials in transactions generating tax liability, reducing tax payable amount, or increasing exempted, reduced, or deductible tax amount, or increasing tax refund amount or tax not payable.

5. Using documents that do not reflect the true nature of the transaction or the actual transaction value to incorrectly determine the tax payable amount, exempted tax amount, reduced tax amount, refund amount, or tax not payable.

6. Declaring incorrectly with actual exported or imported goods without supplementing the tax declaration dossier after the goods have been cleared.

7. Intentionally not declaring or misdeclaring tax for exported or imported goods.

8. Colluding with the sender to import goods for the purpose of tax evasion.

9. Using goods subject to non-taxation, tax exemption, or tax examination exemption for non-regulated purposes without declaring the conversion of usage purposes to the tax management agency.

10. Conducting business activities during business suspension but not notifying the tax management agency.

11. Taxpayers not punished for tax evasion acts but punished according to Clause 1 Article 141 of this Law in the following cases:

a) Not submitting taxpayer registration dossiers, not submitting tax declaration dossiers, or submitting tax declaration dossiers more than 90 days late without incurring a tax payable amount;

b) Submitting tax declaration dossiers more than 90 days late with tax payable incurred, and the taxpayer has fully paid the tax, late payment interest to the state budget before the tax inspection or audit decision is announced by the tax authority, or before the tax authority makes a record of late submission of tax declaration dossiers.

Thus, it can be seen that incorrect declaration of exports or imports without making supplementation after customs clearance is granted is one of the tax evasion acts.

Shall a taxpayer pay late payment interests if the supplementation of the tax declaration dossier leads to an increase in the amount of tax payable in Vietnam?

Pursuant to Article 59 of the Law on Tax Administration 2019, the regulation on tax dossier supplementation is as follows:

Handling of Late Tax Payment

1. Cases requiring late payment interests include:

a) Taxpayers paying tax later than the prescribed deadline, the extended payment deadline, the deadline in the tax management authority's notice, the deadline in the tax decision or the tax management authority's handling decision;

b) Taxpayers supplementing tax declaration dossiers, increasing the tax payable amount, or the tax authority, competent state authority auditing, inspecting, discovering under-declared tax payable amount must pay late payment interests for the increased tax amount from the day following the last tax payment deadline of the tax assessment period with errors or omissions, or from the expiration date for submitting the initial customs declaration;

c) Taxpayers supplementing tax declaration dossiers decreasing refunded tax amount, or the tax authority, competent state authority inspecting, discovering refunded tax amount is less than the refunded amount must pay late payment interests for the refunded tax amount to be recovered from the day they receive the payment from the state budget;

d) Cases allowed to pay tax debt gradually as stipulated in Clause 5 Article 124 of this Law;

đ) Cases not administratively penalized for tax management violations due to expiration of penalty statutes of limitations but are subject to tax deficiency collection specified in Clause 3 Article 137 of this Law;

e) Cases not administratively penalized for tax management violations for acts stipulated in Clauses 3 and 4 Article 142 of this Law;

g) Entities, organizations entrusted by tax management agencies to collect taxes, delaying the transfer of taxes, late payment interests, fines of taxpayers to the state budget shall pay late payment interests for the delayed transfer amount as regulated.

Thus, if a taxpayer supplements the tax declaration dossier, increasing the tax payable amount, they must pay late payment interests for the increased tax amount from the day following the last tax payment deadline of the tax assessment period with errors or omissions, or from the expiration date for submitting the initial customs declaration.