On May 16, 2023, the General Department of Taxation issued Official Letter 1798/TCT-TTKT (“Official Letter 1798”) on reviewing and handling illegal invoices, in which a list of 524 enterprises with risks of illegal invoices was published (mostly businesses in Ho Chi Minh City and some businesses in Hanoi).
At the request of the General Department of Taxation, the Tax Departments in the localities shall conduct a review of the sales invoices of the above 524 enterprises in 2020, 2022, and 2022. During the review process, if any use cases are detected. Using invoices of enterprises in the above list, enterprises using invoices must clearly explain the use of invoices for VAT deduction/VAT refund, calculation of CIT calculation expenses, and goods eligibility, floating buying, and smuggling… with tax authorities.
In case of violations, enterprises using invoices will be applied tax sanctions according to regulations or have their dossiers consolidated by the Department of Taxation and transferred to the police for handling according to law provisions.
Therefore, businesses need to pay attention and review the system of their purchase invoices to determine whether they are issued by the enterprise(s) out of the 524 enterprises mentioned above to have a solution-appropriate decision.
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