In the face of complicated developments of invoicing mistakes, the tax sector is enhancing solutions to prevent, detect and promptly handle violations of the law on management and use of invoices.

Currently, invoicing mistakes remain complicated. Photo: Thuy Linh.

Invoice trading remains complicated

According to statistics, in 2017, the tax sector discovered 3,354 enterprises using 382,876illegal invoices. Tax agencies at all levels handled and collected VND96.7 billion of value added tax and corporate income tax.

In 2018, 2,983 enterprises were discovered with 58,812 illegal invoices, earning VND46.3 billion of value-added tax and corporate income tax.

In 2019, 1,137 enterprises were discovered with 54,988 illegal invoices, earning VND51 billion of value-added tax and corporate income tax.

According to the General Department of Taxation, despite initial results, invoicing mistakes remain complicated.

In fact, some organizations and individuals have taken advantage of the State's open policy on conditions for enterprise establishment; the mechanism of self-declaration and self-payment of taxes; mechanism of self-printing, issuance, and management anduse of invoices to establish, purchase, sell and merge enterprises in order to print, issue, and use illegal invoices to evade tax, refund tax, make illegal profit, causing loss of state budget revenue.

Stop violations on invoices

To prevent, detect and handle violations of the law on invoices, the General Department of Taxation requested tax departments to enhance solutions to prevent, detect and promptly handle violations of law on management and use of invoices.

The General Department of Taxation required tax agencies at all levels to organize the identification of enterprises with risks of illegal printing, issuance, use and sale of invoices; grasp behaviors and methods of organizations, individuals and enterprises using, buying and selling illegal invoices.

At the same time, to collect data about taxpayers, especially suspicious transactions from the banking supervisory authority; and information from other state management agencies; make a list of taxpayers with risks of printing, issuance; using and trading of illegal invoices, thereby reviewing and analyzing collected data about taxpayers to identify taxpayers atrisk of invoices.

The General Department of Taxation also required tax agencies at all levels to conduct close supervision for taxpayers at high risk of invoices, in which assigning units to monitor and strictly control printing and issuance, management and use of invoices for taxpayers; check and review tax declaration dossiers of taxpayers with regular high risks on invoices (monthly and quarterly).

Tax authorities also have to check and review the sale of single invoices, avoiding using single invoices to validate inputs, or as documents to implement settlement with the state budget, and organize inspections for enterpriseswith high risks of taxes and invoices.

The General Department of Taxation also required competent units of tax agencies to verify the taxpayer's operating status at the address registered with the tax agencies.Those that do not operate at the registered addresses shall be publicized on the website of the tax sector and shall be sanctioned.

Tax agencies at all levels also need to coordinate closely with the police agency to verify the origin of goods, verify buyers and sellers from beginning to end; closely coordinate, provide sufficient information and documents at the request of the police agency during investigation and settlement.

In the future, the tax agency will promote communication through mass media and open letters to raise awareness, create consensus and support from the business community and society and to minimize illegal invoice trading.

In particular, the General Department of Taxation emphasized that tax agencies at all levels need to study and train to be ready for the use of e-invoices nationwide according to Government’s Decree No. 119/2018 / ND-CP.