What is the K factor for inspecting invoices exceeding the safety threshold in Vietnam?
What is the K factor for inspecting invoices exceeding the safety threshold in Vietnam?
According to Official Dispatch 2392/TCT-QLRR in 2023 regarding the inspection of electronic invoices, there is a directive to inspect taxpayers issuing invoices exceeding the safety threshold.
The K factor is developed on the electronic invoice application to meet the requirements for controlling electronic invoices, preventing the issuance of fake invoices. Some main functions are as follows:
- The system automatically controls the total value of goods sold on the issued invoices compared to the threshold value of input goods calculated by 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 factor is understood as a parameter or a limit used to inspect invoices exceeding the safety threshold based on the ratio of the total value of goods sold on the invoice to the total value of inventory and the total value of purchased goods.
What is the K factor for inspecting invoices exceeding the safety threshold in Vietnam? (Image from the Internet)
What is the formula for calculating the K factor to inspect invoices exceeding the safety threshold in Vietnam?
Based on Official Dispatch 2392/TCT-QLRR in 2023, the K factor is used to control the total value of goods sold on the issued invoices compared to the threshold value of input goods calculated by the following formula:
K = Total value of goods sold on the invoice / (Total value of Inventory + Total value of goods purchased on the invoice)
When an enterprise exceeds the threshold value of input goods calculated by K times the total value of inventory and the total value of purchased goods, the system will issue an invoice warning and put it on the management list.
What are the penalties for issuing invoices at the wrong time in Vietnam?
According to Article 24 of Decree 125/2020/ND-CP, which regulates the penalties for violations related to invoice issuance when selling goods and services.
Depending on the level of violation, enterprises that issue invoices at the wrong time will be penalized as follows:
| No. | Behavior | Penalty |
|---|---|---|
| 1 | Issuing invoices at the wrong time but not leading to delayed tax obligations and with mitigating circumstances | Warning |
| 2 | Issuing invoices at the wrong time but not leading to delayed tax obligations | Fine from 3 - 5 million VND |
| 3 | Issuing invoices at the wrong time (except for the above 2 cases) | Fine from 4 - 8 million VND |
Note: The fines mentioned above apply to organizations. If an individual violates, the fine will be half of the organization's penalty.
What is the time limit for the imposion of administrative penalties on invoices in Vietnam?
According to Article 8 of Decree 125/2020/ND-CP (amended by Clause 1, Article 1 of Decree 102/2021/ND-CP):
time limit for the imposion of administrative penalties on tax, invoices; the period considered as not yet penalized; the period for tax collection
1. time limit for the imposion of administrative penalties on invoices
a) The time limit for the imposion of administrative penalties on invoices is 02 years.
b) The time point for calculating the time limit for the imposion of administrative penalties on invoices is regulated as follows:
For ongoing administrative violations specified at point c of this clause, the statute of limitations is calculated from the date the competent person performing public duties detects the violation.
For completed administrative violations specified at point d of this clause, the statute of limitations is calculated from the date the violation ends.
2. time limit for the imposion of administrative penalties on tax
a) The time limit for the imposion of penalties on tax procedure violations is 02 years, from the date of violation.
The date of violation on tax procedures is the day following the deadline for tax procedures as prescribed by tax management laws, except in the following cases:
For behaviors 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 of violation for calculating the statute of limitations is the day the taxpayer performs taxpayer registration or notifies the tax authority or submits tax declaration documents.
For behaviors 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 of violation for calculating the statute of limitations is the day the competent person performing public duties detects the violation.
b) The time limit for the imposion of penalties on tax evasion not reaching the level of criminal liability, and behavior of misdeclaration leading to a deficiency in payable tax or an increase in tax exemption, reduction, and refund amount is 05 years, from the date of violation.
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The time limit for the imposion of administrative penalties on invoices is 02 years.
