What are the cases of tax liability imposition in Vietnam? Can the taxpayer file a lawsuit against the tax liability imposition decision?

What are the cases of tax liability imposition in Vietnam?

Under Clause 1, Article 50 of the Tax Administration Law 2019 on tax liability imposition in case of tax offences:

Tax liability imposition in case of tax offences

1. Tax liability will be imposed if the taxpayer:

a) fails to apply for taxpayer registration; fails to declare tax; fails to provide supplementary tax documents at the request of the tax authority; fails to declare fully and/or accurately the tax calculation bases;

b) fails to record or fully and/or accurately record data on the accounting books;

c) fails to present the accounting books, invoices and necessary documents relevant to the determination of tax payable within a certain time limit;

d) fails to comply with the tax inspection or tax audit decision;

dd) buys, sells, trades goods and record values thereof against their market prices;

e) buys or trades goods using illegal invoices; illegally uses invoices for real goods from which revenue has been declared for tax calculation as investigated by a competent authority;

g) is suspected of absconding or selling assets to evade tax;

h) makes false transactions to reduce tax liability; or

i) fails to fulfill the responsibility to declare and valuate related-party transactions; fails to provide information about enterprises having related-party transactions according to tax administration laws.

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Thus, the taxpayer is subject to tax liability imposition in the following cases of tax offences:

- Failing to apply for taxpayer registration; fails to declare tax; fails to provide supplementary tax documents at the request of the tax authority; fails to declare fully and/or accurately the tax calculation bases;

- Failing to record or fully and/or accurately record data on the accounting books;

- Failing to present the accounting books, invoices and necessary documents relevant to the determination of tax payable within a certain time limit;

- Failing to comply with the tax inspection or tax audit decision;

- Buying, selling, trading goods and recording values thereof against their market prices;

- Buying or trading goods using illegal invoices; illegally using invoices for real goods from which revenue has been declared for tax calculation as investigated by a competent authority;

- Being suspected of absconding or selling assets to evade tax;

- Making false transactions to reduce tax liability; or

- Failing to fulfill the responsibility to declare and valuate related-party transactions; fails to provide information about enterprises having related-party transactions according to tax administration laws.

What are the cases of tax liability imposition in Vietnam? Can the taxpayer in Vietnam file a lawsuit against the tax liability imposition decision? (Image from the Internet)

Can the taxpayer in Vietnam file a lawsuit against the tax liability imposition decision?

Under Article 54 of the Tax Administration Law 2019 on the responsibilities of tax authorities for paying tax imposed:

Responsibilities of tax authorities for paying tax imposed

Taxpayers shall pay the tax imposed by tax authorities under tax decisions, even if they do not concur with it, in which case they may request explanation from the tax authority or file a complaint or lawsuit against the tax liability imposition decision. Taxpayers shall provide documents to support their complaints or lawsuits.

Thus, the taxpayer has the right to request the tax authority to explain or file a complaint or a lawsuit against the tax liability imposition decision.

What are the cases where the customs authorities shall impose tax liability on exports and imports in Vietnam?

Under Article 52 of the Tax Administration Law 2019, the customs authorities shall impose tax liability on exports and imports in the following cases:

- The declarant declares tax according to illegal documents; fails to declare or accurately and fully declare information serving tax calculation;

- The declarant fails to provide, refuses to provide or delays providing accounting books, documents and data relevant to tax calculation;

- The declarant fails to prove, explain or fails to explain in the tax calculation as prescribed by law; fails to comply with the customs authority’s inspection decision;

- The declarant fails to record or fully and accurately record data on the accounting books to calculate tax;

- The customs authority has evidence to that the declared value is false;

- The transaction is falsely carried out in a manner that affects the amount of tax payable;

- The declarant fails to calculate the amount of tax payable themselves;

- Other cases of unconformable tax declaration discovered by customs authorities.