Will tax liability be imposed for failure to provide supplementary tax documents in Vietnam?

Will tax liability be imposed for failure to provide supplementary tax documents in Vietnam?

Pursuant to Clause 1, Article 50 of the Law on Tax Administration 2019, taxpayers are subject to tax liability imposition under the following circumstances of tax law violations:

Tax liability imposition in case of tax offences

1. Taxpayers are subject to tax liability imposition under the following circumstances of tax law violations:

a) Failing to register for taxpayer, failing to declare tax, failing to provide supplementary tax documents as required by the tax authority, or declaring tax inaccurately, incompletely, or dishonestly based on tax calculation criteria;

b) Failing to reflect or inaccurately, incompletely, or dishonestly reflecting financial data on accounting books to determine tax obligations;

c) Failing to present accounting books, invoices, documents, and necessary related materials to determine payable tax amounts within the stipulated time;

d) Failing to comply with tax inspection or tax audit decisions as stipulated;

e) Engaging in the purchase, sale, exchange, and accounting of the value of goods and services that do not align with their normal transaction value in the market;

f) Purchasing, exchanging goods using illegal invoices, illegally using invoices where the goods are real as determined by competent authorities and have been declared for revenue tax calculation;

g) Showing signs of absconding or dispersing assets to evade tax obligations;

h) Conducting transactions that do not reflect their economic essence or actual occurrence to reduce tax obligations for the taxpayer;

i) Failing to comply with the regulations on declaring and determining transaction prices for associated transactions or failing to provide information according to tax administration regulations for enterprises with associated transactions.

Thus, if taxpayers fail to provide supplementary tax documents as required by the tax authority, they fall under the cases where tax liability imposition is applied due to tax law violations.

Will tax liability be imposed for failure to provide supplementary tax documents in Vietnam? (Image from the Internet)

What are the principles of tax liability imposition in Vietnam?

Based on Article 49 of the Law on Tax Administration 2019, the principles of tax liability imposition are stipulated as follows:

Principles of Tax liability imposition

1. tax liability imposition must be based on principles of tax administration, tax calculation criteria, and methods stipulated by tax law and customs law.

2. The tax administration authority determines the payable tax amount or determines each factor and basis for tax calculation to ascertain the payable tax amount.

Thus, tax liability imposition must adhere to the following principles:

- Must be based on principles of tax administration, tax calculation criteria, and methods as stipulated by tax law and customs law.- The tax administration authority determines the payable tax amount or determines each factor and basis for tax calculation to ascertain the payable tax amount.

What is the responsibility of taxpayers in Vietnam?

According to Article 17 of the Law on Tax Administration 2019 regarding the responsibilities of taxpayers, specifically:

(1) Register for taxpayer identification, and use the tax identification number as stipulated by law.

(2) Accurately, honestly, and fully declare taxes and submit tax documentation on time; be responsible before the law for the accuracy, honesty, and completeness of the tax documentation.

(3) Fully and promptly pay taxes, late payment fees, and fines to the correct locations as stipulated.

(4) Comply with policies on accounting, statistics, and the management and use of invoices and documents as stipulated by law.

(5) Accurately, honestly, and fully document activities that generate tax obligations, tax deductions, and transactions that must be declared for tax information.

(6) Prepare and provide invoices and documents to the buyer for the correct quantity, type, and actual payment value when selling goods or providing services as stipulated by law.

(7) Provide accurate, complete, and prompt information and documents related to the determination of tax obligations, including investment value information; transaction details of accounts opened at commercial banks and other credit institutions; and explain tax calculations, declarations, and payments as required by the tax administration authority.

(8) Comply with decisions, notifications, and requirements of the tax administration authority, and tax officials as stipulated by law.

(9) Be responsible for fulfilling tax obligations according to the law in cases where the legal or authorized representative incorrectly handles tax procedures on behalf of the taxpayer.

(10) Taxpayers conducting business activities in areas with information technology infrastructure must declare, pay taxes, and transact with the tax administration authority electronically as stipulated by law.

(11) Based on actual conditions and the level of information technology infrastructure, the Government of Vietnam stipulates in detail the cases where taxpayers are not required to submit documents within the tax declaration, payment, refund, and other tax documentation that the state management agency already possesses.

(12) Develop, manage, and operate a technical infrastructure system to ensure the execution of electronic transactions with the tax administration authority; implement information connectivity relating to tax obligation fulfillment with the tax administration authority.

(13) Taxpayers with associated transactions must prepare, retain, declare, and provide documents on taxpayer information and information on associated parties, including information on associated parties residing in other countries or territories outside Vietnam as stipulated by the Government of Vietnam.