When may a tax inspection be conducted at the taxpayer's premises in Vietnam?

When is it necessary to conduct a tax inspection at the taxpayer's premises in Vietnam?

Based on the regulations in point a, clause 5, Article 72 of Circular 80/2021/TT-BTC on the issuance of a decision to inspect taxes at the taxpayer's premises as follows:

Inspection at the taxpayer’s premises

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5. Tax inspection procedures at the taxpayer’s premises

a) Issuance of a tax inspection decision

The tax authority issues a tax inspection decision for cases prescribed in Article 110 of the Law on Tax Administration. Tax inspections at the taxpayer's premises shall only be conducted when there is a decision to inspect taxes at the taxpayer's premises.

The tax authority issues a tax inspection decision for particularly risky periods and matters, excluding tax refunds. The tax inspection decision is made according to Form No. 04/KTT issued with Annex I of this Circular.

The inspection duration is determined as prescribed in clause 4, Article 110 of the Law on Tax Administration. In case of an extension, the Chief Inspector shall report to the competent authority to issue an extension decision according to Form No. 05/KTT issued with Annex I of this Circular.

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Thus, the tax inspection at the taxpayer's premises shall only be conducted when there is a Tax Inspection Decision at the taxpayer's premises.

When may a tax inspection be conducted at the taxpayer's premises in Vietnam? (Image from the Internet)

Which form is used for announcing the Tax Inspection Decision at the taxpayer’s premises in Vietnam?

Based on the regulations in point b, clause 5, Article 72 of Circular 80/2021/TT-BTC on the issuance of a decision to inspect taxes at the taxpayer's premises as follows:

Inspection at the taxpayer’s premises

...

5. Tax inspection procedures at the taxpayer’s premises

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b) The inspection according to the Tax Inspection Decision must be conducted no later than 10 working days from the date of issuing the Tax Inspection Decision, except for cases where the Tax Inspection Decision needs to be cancelled according to Form No. 06/KTT issued with Annex I of this Circular or the inspection time needs to be postponed.

At the beginning of the tax inspection, the Chief Inspector is responsible for announcing the Tax Inspection Decision, preparing a Record of Announcement, and explaining the contents of the Inspection Decision so the taxpayer understands and complies with the Inspection Decision. The Record of Announcement for the Tax Inspection Decision is prepared according to Form No. 07/KTT issued with Annex I of this Circular.

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Thus, the form for the Record of Announcement for the Tax Inspection Decision at the taxpayer’s premises is prepared according to Form 07/KTT in Annex 1 issued with Circular 80/2021/TT-BTC.

Note: At the beginning of the tax inspection, the Chief Inspector is responsible for announcing the Tax Inspection Decision, preparing the Record of Announcement, and explaining the contents of the Inspection Decision so the taxpayer understands and complies with the Inspection Decision.

DOWNLOAD >>> Record of Announcement for the Tax Inspection Decision at the taxpayer's premises (Form 07/KTT)

How is the result of the tax inspection at the taxpayer’s premises in Vietnam handled?

The results of the tax inspection at the taxpayer’s premises are handled as prescribed in point e, clause 5, Article 72 of Circular 80/2021/TT-BTC as follows:

- No later than 03 working days from the date of signing the Inspection Record with the taxpayer, the Chief Inspector must report the inspection results to the head of the inspection department and the issuer of the inspection decision.

In case the inspection results lead to tax handling, administrative penalties, the Head of the Tax Authority shall issue a decision to handle tax violations or transfer the case to the competent authority for penalties.

In case the inspection results do not involve tax handling, administrative penalties, the issuer of the Inspection Decision shall issue an Inspection Conclusion according to Form No. 15/KTT issued with Annex I of Circular 80/2021/TT-BTC.

- In cases where the tax inspection reveals acts of tax evasion or tax fraud, within 05 working days from the end of the inspection, the inspection team is responsible for reporting to the Head of the Tax Authority to consider conducting a tax audit or transferring the inspection dossier to the investigative agency as per legal regulations.

The processes, procedures, and time limit for issuing a decision to handle tax violations or transferring the inspection dossier to the competent authority for penalties or to the investigative agency are conducted according to the provisions of the Law on Handling Administrative Violations 2012, Criminal Procedure Code 2015, guiding documents and Decree 125/2020/ND-CP dated October 19, 2020, by the Government on penalties for administrative violations of tax and invoices.