What is the definition of tax liability imposition in Vietnam? What is the basis for tax liability imposition for enterprises?

What is the definition of tax liability imposition in Vietnam?

Currently, the tax liability imposition is mentioned in Clause 1, Article 48 of Circular 38/2015/TT-BTC as follows:

tax liability imposition

1. tax liability imposition prescribed in this Circular means the customs authority’s exercising its right to determine the factors, basis for tax calculation, calculate tax, and request the taxpayer to pay the tax determined by the customs authority in the cases mentioned in Clause 2 of this Article.

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In other words, tax liability imposition can be understood as a situation where the taxpayer that is imposed tax liability by the tax authority must pay a specific tax amount instead of actively declaring and paying taxes as usual.

What is the definition of tax liability imposition in Vietnam? What is the basis for tax liability imposition for enterprises? (Image from the Internet)

What is the basis for tax liability imposition for enterprises in Vietnam?

According to the provisions of Sub-clause b.1, Clause 1, Article 15 of Decree 126/2020/ND-CP, the basis for tax liability imposition for enterprises in Vietnam is as follows:

- The tax authority’s database and trade database;

- documents and effective inspection verdicts;

- verification results;

- minimum average tax payable of 03 local business establishments selling the same commodities or having the same business lines and scale.

In case such business establishments are not available or are available but information about their commodities, business lines or scale is inadequate, information about business establishments in other areas may be used.

- minimum revenue of 03 local business establishments selling the same commodities or having the same business lines and scale.

In case such business establishments are not available or are available but information about their commodities, business lines or scale is inadequate, information about business establishments in other areas with the same natural and economic conditions may be used.

What are the cases where the customs authorities shall impose tax liability on exports and imports in Vietnam?

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

Imposition of tax on exports and imports

1. Customs authorities shall impose tax liability on exports and imports in the following cases:

a) The declarant declares tax according to illegal documents; fails to declare or accurately and fully declare information serving tax calculation;

b) The declarant fails to provide, refuses to provide or delays providing accounting books, documents and data relevant to tax calculation;

c) The declarant fails to prove, explain or fails to explain in the tax calculation as prescribed by law; fails to comply with the customs authority’s inspection decision;

d) The declarant fails to record or fully and accurately record data on the accounting books to calculate tax;

dd) The customs authority has evidence to that the declared value is false;

e) The transaction is falsely carried out in a manner that affects the amount of tax payable;

g) The declarant fails to calculate the amount of tax payable themselves;

h) Other cases of unconformable tax declaration discovered by customs authorities.

2. The customs authority shall impose tax according to the exports or imports in reality; the tax calculation bases and methods; the tax administration database and commerce database; customs declarations; other documents and information relevant to the exports and imports.

3. The Government shall elaborate this Article.

There are 08 cases where the customs authorities shall impose tax liability on exports and imports, including:

- The declarant declares tax according to illegal documents; fails to declare or accurately and fully declare information serving tax calculation;

- The declarant fails to provide, refuses to provide or delays providing accounting books, documents and data relevant to tax calculation;

- The declarant fails to prove, explain or fails to explain in the tax calculation as prescribed by law; fails to comply with the customs authority’s inspection decision;

- The declarant fails to record or fully and accurately record data on the accounting books to calculate tax;

- The customs authority has evidence to that the declared value is false;

- The transaction is falsely carried out in a manner that affects the amount of tax payable;

- The declarant fails to calculate the amount of tax payable themselves;

- Other cases of unconformable tax declaration discovered by customs authorities.