GDT Requires Explanations for Invoices Related to 524 Companies with High Tax Risks

9:45:07 AM | 8/2/2023

While most businesses comply with tax laws, some always seek to cheat on taxes by buying and selling illegal invoices in order to evade taxes and appropriate tax refunds from the State budget. Tax authorities have coordinated with relevant agencies to review and detect entities using fake identity cards and citizen identifications to establish new companies or acquire inactive companies to sell illegal invoices to other companies to reduce tax obligations to the State budget.

Through cooperation with other agencies, tax authorities discovered 524 companies that sold illegal invoices and falsified invoices (prohibited in Clause 7, Article 6 of the Law on Tax Administration). These companies are different from those that sell goods and then fill in their registered business address with the tax agency because invoice-selling companies mainly declare false invoices for purchased goods.

The GDT warned that companies that had input invoices issued by these 524 blacklisted companies need to actively review and exclude illegal invoices and blank invoices and declare tax correctly. The GDT required local tax authorities to notify and invite companies in connection with these 524 high-risk companies to prove that the use of invoices is legal. The explanation can be performed directly at tax offices or expressed in writing.

Blacklisted companies are available at https://www.gdt.gov.vn.

Huong hau, Vietnam Business Forum