In Vietnam, how do tax records inspect at tax authorities?
In Vietnam, how are tax records inspected at tax authorities? How to handle the results of checking tax record inspection at the tax authorities of Vietnam?
In Vietnam, how do tax records inspect at tax authorities?
Pursuant to Clause 3, Article 71 of Circular 80/2021/TT-BTC stipulating tax record inspection at tax authorities as follows:
In case the tax authority needs to compare and analyze the tax records on which information is inaccurate, inadequate or needs clarifying regarding tax payable, tax eligible for exemption, reduction, refundable tax, tax carried forward to next periods, the tax authority shall issue the first notice according to Form No. 01/KTT requesting the taxpayer to provide explanatory or supplementary information/documents.
Within 10 working days from the day on which the request is issued by the tax authority, the taxpayer shall provide explanatory or supplementary information/documents to the tax authority. Explanatory or supplementary information/documents may be provided in person at the tax authority of in writing (physical documents or electronic documents).
In case the taxpayer provides explanatory documents at the tax authority, the tax authority shall issue Form No. 02/KTT in Appendix I hereof.
Handling the results of tax record inspection at the tax authorities of Vietnam?
Pursuant to Clause 4, Article 71 of Circular 80/2021/TT-BTC stipulating Handling inspection results as follows:
a) In case the taxpayer has provided explanatory or supplementary information/documents (first time or second time) and is able to prove that the declared tax is correct, the tax records shall be accepted; explanatory and supplementary documents shall be retained together with the tax records.
b) In case the taxpayer has provided explanatory or supplementary information/documents but is not able to prove that the declared tax is correct or further clarification is necessary, the tax authority shall issue the second notice according to Form No. 03/KTT requesting the taxpayer to provide further explanatory or supplementary information/documents or adjust the tax declaration dossier, for which the taxpayer is parent company. The time limit for provision of further explanatory and supplementary information or documents or adjusting the tax declaration dossier is 10 days from the day on which the notice is issued by the tax authority. The tax authority shall make up to 02 requests for explanatory or supplementary information/documents per inspection at the tax authority.
c) If the taxpayer fails to provide explanatory or supplementary information or documents by the deadline specified in the second notice, or fails to adjust the tax declaration dossier, or fails to prove that the declared tax is correct, the tax authority shall impose the tax payable if this is well founded. Otherwise, the tax authority shall issue a decision on inspection at the taxpayer's premises.
d) In case the taxpayer has provided explanatory or supplementary information/documents for the second time and the tax authority is able to identify the tax offences, the tax authority shall issue a violation notice and take actions as per regulations.
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