Amendments to methods for handling of administrative violations in electronic tax transactions in Vietnam from August 28, 2024

Amendments to methods for handling of administrative violations in electronic tax transactions in Vietnam from August 28, 2024 (Image from Internet)

On July 9, 2024, the Minister of Finance (Hanoi, Vietnam) issued Circular 46/2024/TT-BTC amending and supplementing certain articles of Circular 19/2021/TT-BTC guiding electronic transactions in the field of tax;

Amendments to methods for handling of administrative violations in electronic tax transactions in Vietnam from August 28, 2024

Clause 3, Article 1 of Circular 46/2024/TT-BTC amends Article 32 of Circular 19/2021/TT-BTC pertaining to handling administrative violations in electronic tax transactions in Vietnam as follows:

- The tax authority shall draft and send the electronic Administrative Violation Record for tax administrative penalties:

+ Regarding taxpayer registration: When a taxpayer commits a violation regarding the deadline for taxpayer registration; notification of changes in taxpayer registration information; notification of suspension of business activities; or notification of resuming business activities before the deadline, the tax authority based on the date of filing as stipulated in point b, clause 1, Article 8 Circular 19/2021/TT-BTC recorded in the receipt notification of the taxpayer registration file/registration change information file/suspension of business activities file; resuming business activities before the deadline (according to Form No. 01-1/TB-TDT issued with Circular 19/2021/TT-BTC) and the deadline provided by the Law on Tax Administration 2019 and its guiding documents to determine the number of days the filing is late and draft the Administrative Violation Record for tax administrative penalties to send to the taxpayer as stipulated in clause 2, Article 5 of Circular 19/2021/TT-BTC.

+ Regarding tax declaration: When a taxpayer commits a violation of late tax declaration filing, the tax authority based on the acknowledgment time of electronic tax declaration filing as stipulated in point b, clause 1, Article 8 of Circular 19/2021/TT-BTC recorded in the receipt notification of electronic tax declaration file sent by the tax authority to the taxpayer as stipulated in clause 2, Article 5 of Circular 19/2021/TT-BTC (according to Form No. 01-1/TB-TDT issued with Circular 19/2021/TT-BTC) if the tax declaration file is accepted by the tax authority in the electronic acceptance notification sent to the taxpayer (according to Form No. 01-2/TB-TDT issued with Circular 19/2021/TT-BTC) to determine the number of days the filing is late and draft the Administrative Violation Record for tax administrative penalties to send to the taxpayer as stipulated in clause 2, Article 5 of Circular 19/2021/TT-BTC.

- The taxpayer receives, explains the electronic Administrative Violation Record for tax administrative penalties from the tax authority:

+ The taxpayer is responsible for receiving the electronic Administrative Violation Record for tax administrative penalties sent by the tax authority to the taxpayer as stipulated in clause 2, Article 5 of Circular 19/2021/TT-BTC.

+ No later than 5 days from the date the tax authority drafts the tax administrative penalty record and sends it to the taxpayer as stipulated in clause 2, Article 5 Circular 19/2021/TT-BTC; the taxpayer may submit additional explanations for the contents stated in the tax administrative penalty record and send it to the tax authority as stipulated in clause 5, Article 4 of Circular 19/2021/TT-BTC; or send written documents, additional explanatory dossiers by paper to the tax authority directly managing them; in case the taxpayer makes a direct explanation, within 2 working days from the date the tax authority drafts the tax administrative penalty record and sends it to the taxpayer as stipulated in clause 2, Article 5 Circular 19/2021/TT-BTC, the taxpayer must send a written request to make a direct explanation to the tax authority drafting the tax administrative penalty record.

- The tax authority issues the Decision on tax administrative penalty via electronic method:

+ After the explanation period stipulated in clause 2, Article 32 of Circular 19/2021/TT-BTC, the tax authority shall base on the tax administrative violations of the taxpayer as stated in the tax administrative violation record and the additional explanatory documents on mitigating circumstances (if any) to issue the Decision on tax administrative penalty and send it to the taxpayer as stipulated in clause 2, Article 5 of Circular 19/2021/TT-BTC.

If the explanatory content and additional documents provided by the taxpayer are not accepted, the tax authority shall send a notification of non-acceptance (according to Form No. 01-3/TB-TDT issued with Circular 19/2021/TT-BTC) and the Decision on tax administrative penalty to the taxpayer as stipulated in clause 2, Article 5 of Circular 19/2021/TT-BTC.

Full content can be found in Circular 46/2024/TT-BTC which comes into force in Vietnam from August 28, 2024.

To Quoc Trinh

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