What is the formula for caculation K coefficient for checking invoice issuance exceeding safety thresholds in Vietnam?

What is the K coefficient for checking invoice issuance exceeding safety thresholds in Vietnam?

According to Official Dispatch 2392/TCT-QLRR in 2023 regarding the inspection of electronic invoices, which directs the verification of taxpayers issuing invoices beyond the safety thresholds.

The K coefficient is established within the electronic invoice application to meet the requirement of controlling electronic invoices, preventing the issuance of fraudulent invoices. Some key functions are as follows:

- The system automatically controls the total value of goods sold on issued invoices compared to the value threshold of input goods calculated as K times the total value of inventory and the total value of purchased goods.

- The system issues warnings based on the K parameter.

Thus, the K coefficient is understood as a parameter or a threshold used to check invoice issuance beyond safety thresholds based on the ratio of the total value of goods sold on invoices to the total value of inventory and the total value of purchased goods.

What is the formula for caculation K coefficient for checking invoice issuance exceeding safety thresholds in Vietnam? (Image from Internet)

What is the formula for caculation K coefficient for checking invoice issuance exceeding safety thresholds in Vietnam?

Based on Official Dispatch 2392/TCT-QLRR in 2023, the K coefficient is used to control the total value of goods sold on issued invoices compared to the threshold value of input goods calculated using the following formula:

K = Total value of goods sold on invoices / (Total value of Inventory + Total value of goods purchased on invoices)

When an enterprise exceeds the threshold value of input goods calculated as K times the total value of inventory and the total value of purchased goods, the system will issue an invoice warning and include it in the management list.

What is the time limit for imposion of administrative penalties regarding taxes and invoices in Vietnam?

According to Article 8 Decree 125/2020/ND-CP (amended and supplemented by Clause 1, Article 1 Decree 102/2021/ND-CP), the content is regulated as follows:

time limit for imposion of administrative penalties regarding taxes and invoices; periods considered as not penalized; tax retrieval periods

1. time limit for imposion of administrative penalties regarding invoices

a) The time limit for imposion of administrative penalties regarding invoices is 02 years.

b) The time for calculating the time limit for imposion of administrative penalties regarding invoices is regulated as follows:

For ongoing administrative violations specified at Point c of this clause, the time limit is calculated from the day the competent authority discovers the violation.

For concluded administrative violations specified at Point d of this clause, the time limit is calculated from the day the violation ceased.

c) Ongoing administrative violations regarding invoices are those specified in Clause 4, Article 21; Point b, Clause 2 and Clause 3, Article 23; Clause 2, Clause 5, Article 24; Point b, Clause 3, Article 25; Point b, Clause 2 and Points b, c, d, Clause 3, Article 27; Point b, Clause 5, Article 29; Point b, Clause 3, Article 30 of this Decree.

d) Administrative violations regarding invoices not covered under Point c of this clause are concluded administrative violations. The time a violation is considered to have ceased is the date when the violation act is carried out.

For lost, burnt, or damaged invoices where the date cannot be determined, the time a violation is considered to have ceased is the day the lost, burnt, or damaged invoice is discovered.

For violations regarding the time limit for notifying or reporting on invoices specified in Clause 1, 3, Article 21; Points a, b, Clause 1 and Points c, d, Clause 2, Article 23; Clause 1, 2 and Point a, Clause 3, Article 25; Clause 1, Point a, Clause 2, Clause 3, Clause 4 and Point a, Clause 5, Article 29 of this Decree, the time a violation is considered to have ceased is the day the taxpayer submits the notification or report on the invoice.

2. time limit for imposion of administrative penalties regarding taxes

a) The time limit for penalties regarding tax procedures violations is 02 years, from the date the violation act is carried out.

The date on which an administrative violation regarding tax procedures is carried out is the day following the end of the time limit for completing tax procedures as prescribed by the tax management law, except in the following cases:

For violations specified in Clause 1, Points a, b, Clause 2, Clause 3 and Point a, Clause 4, Article 10; Clauses 1, 2, 3, 4 and Point a, Clause 5, Article 11; Clauses 1, 2, 3 and Points a, b, Clause 4, Clause 5, Article 13 of this Decree, the date is considered as the day the taxpayer performs taxpayer registration or notifies the tax authority or submits a tax declaration dossier.

For violations specified in Point c, Clause 2, Point b, Clause 4, Article 10; Point b, Clause 5, Article 11; Points c, d, Clause 4, Article 13 of this Decree, the date is considered as the day the competent authority discovers the violation.

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Thus, the time limit for imposion of administrative penalties regarding invoices and taxes is 02 years.

Additionally, after two years, taxpayers are not penalized but are still subject to tax retrieval for the corporate income tax amount owed to the state budget within ten previous years from the date the violation is discovered.

In cases where taxpayers do not complete taxpayer registration, they must pay the full amount of missing tax, evaded tax, and late tax payment for the entire previous period, from the date the violation is discovered.