In which case, the tax authority will check the tax at the taxpayer's office? Is it okay to open the door for normal operation when being inspected?

Main Content

• In what cases does the tax authority perform tax inspection in Vietnam at the taxpayer's office?
• Are taxpayers allowed to open their doors when the tax authorities come to the taxpayer's office for tax inspection in Vietnam?
• If you do not comply with the tax inspection in Vietnam decision of the tax authority, will you be administratively sanctioned?

In what cases does the tax authority perform tax inspection in Vietnam at the taxpayer's office?

Pursuant to Article 110 of the Law on Tax Administration 2019 stipulates as follows:

“Article 110. Tax inspection at the taxpayer's office

1. Tax inspection at the taxpayer's office shall be carried out in the following cases:

a) In case the application is subject to pre-tax refund inspection; post-tax refund examination for dossiers eligible for tax refund first;

b) The case specified at Point b, Clause 2, Article 109 of this Law;

c) In case of post-customs clearance inspection at the head office of the customs declarant in accordance with the law on customs;

d) In case there are signs of law violation;

dd) In case selected according to the plan or thematic;

e) Case at the recommendation of the State Audit, State Inspectorate, other competent agencies;

g) In case of division, separation, merger, consolidation, transformation of enterprise type, dissolution, operation termination, equitization, TIN deactivation, business location relocation and other cases Unscheduled inspection, inspection under the direction of competent authorities, except in case of dissolution or termination of operation where the tax authority is not required to make tax finalization as prescribed by law.

2. For the cases specified at Points dd, e and g, Clause 1 of this Article, the tax authority shall inspect the taxpayer's office no more than once in a year.

3. Tax inspection decisions must be sent to taxpayers within 03 working days and announced within 10 working days from the date of signing. Before announcing the inspection decision, if the taxpayer proves that the declared tax amount is correct and has fully paid the payable tax amount, the tax administration agency shall annul the tax inspection decision.

4. The order and procedures for tax examination are prescribed as follows:

a) Announce the tax inspection decision at the beginning of the tax inspection;

b) Compare the declared contents with accounting books, accounting vouchers, financial statements, tax risk analysis results, inspection data at the head office of tax authorities, relevant documents; assessment, the actual status within the scope and content of the tax inspection decision;

c) The inspection time limit is determined in the inspection decision but must not exceed 10 working days at the taxpayer's office. The inspection period is counted from the date of publication of the inspection decision; in case the inspection scope is large and the contents are complicated, the person who has decided to inspect may extend the time limit once but for no more than 10 working days at the taxpayer's office;

d) Make a tax inspection record within 5 working days from the date of expiration of the inspection time limit;

dd) Handle according to competence or request competent authorities to handle according to inspection results.

5. Post-customs clearance inspection shall comply with the provisions of the law on customs.”

Accordingly, the tax authority shall conduct tax inspection at the taxpayer's office in accordance with the above provisions. If the taxpayer proves that the declared tax amount is correct and fully pays the payable tax amount before the tax authority announces the tax inspection in Vietnam decision at the head office, the tax authority will cancel the tax inspection in Vietnam decision.

In which case, the tax authority will check the tax at the taxpayer's office? Is it okay to open the door for normal operation when being inspected?

Are taxpayers allowed to open their doors when the tax authorities come to the taxpayer's office for tax inspection in Vietnam?

Pursuant to Article 107 of the Law on Tax Administration 2019 stipulates as follows:

“Article 107. Principles of tax inspection and tax inspection

1. Applying risk management in tax administration and applying information technology in tax inspection and tax inspection.

2. Comply with the provisions of this Law, other relevant provisions of law and inspection and examination forms, order, procedures and tax examination dossiers as prescribed by the Minister of Finance.

3. Not obstructing the normal activities of taxpayers.

4. When conducting tax inspection or tax inspection at the taxpayer's office, the head of the tax administration agency must issue a decision on examination and inspection.

5. Tax examination and tax inspection aims to assess the completeness, accuracy and truthfulness of the contents of documents, information and dossiers that taxpayers have declared, submitted and presented to tax administration agencies. ; assess the taxpayer's compliance with tax laws and other relevant provisions of law for tax handling in accordance with the law."

Thus, the conduct of tax inspection and examination is carried out according to the above principles. In case the tax authority comes to the taxpayer's office for tax inspection, it must not obstruct the normal operation of the taxpayer.

If you do not comply with the tax inspection in Vietnam decision of the tax authority, will you be administratively sanctioned?

Pursuant to Article 15 of Decree 125/2020/ND-CP stipulates as follows:

“Article 15. Penalties for violations against regulations on compliance with decisions on tax examination and inspection, and enforcement of tax administrative decisions

1. A fine of between VND 2,000,000 and 5,000,000 shall be imposed for one of the following acts:

a) Failing to receive tax inspection and examination decisions or decisions on enforcement of tax administrative decisions when assigned or sent by tax authorities in accordance with law;

b) Failing to comply with the tax inspection and examination decision within 03 working days or more from the date on which the decision of the competent authority must be complied with;

c) Providing dossiers, documents, invoices, vouchers, accounting books related to tax obligations beyond 06 working hours after receiving the request of competent authorities during the audit period. inspect and inspect at the taxpayer's office;

d) Providing incomplete and inaccurate information, documents and accounting books related to the determination of tax obligations at the request of competent authorities during the tax inspection and inspection at the head office. taxpayers;

dd) Failing to sign the tax inspection and examination minutes within 5 working days from the date of making or the date of public announcement of the minutes.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a) Failing to provide data, documents and accounting books related to the determination of tax obligations when requested by a competent authority during tax inspection and inspection at the taxpayer's office;

b) Failing to implement or improperly implementing decisions on sealing of documents, documents, fund, warehouse of goods, supplies, raw materials, machinery, equipment, and workshops;

c) Arbitrarily removing or changing seal signs legally created by competent authorities.

3. Remedial measures: Forcible provision of information, documents and accounting books related to the determination of tax obligations, for the acts specified at Point d, Clause 1 and Point a, Clause 2 of this Article.”

Accordingly, in case taxpayers do not comply with the tax inspection in Vietnam decision, they will be administratively sanctioned according to the above provisions. In addition to administrative sanctions, taxpayers must also take remedial measures according to the above provisions.

Note: The administrative sanction as prescribed above applies only to organizations committing administrative violations. In case of violations by individuals, the administrative sanction equal to half of that of the organization will be applied.