In order to promptly detect, prevent and strictly treat cases of trading in invoices to gain illicit profits, on June 1, 2022, the General Department of Taxation issued the official letter No.1873/TCT-TTKT to enforce verification and inspection to detect taxpayers with signal of risk on invoices, tax refund fraud.
Accordingly, some typical indicators and violation of invoice management are stipulated in the attached appendices as follows:
Enterprises change their legal representative twice or more within 12 months, or change their legal representative and business location at the same time;
• Enterprises use a large number of invoices (from 500 to 2000 invoices). e number of deleted invoices large and accounts for about 20% of used invoices;
• Enterprises using e-invoices according to the Decree No. 123/2020/ND-CP,
Circular No. 78/2021/TT-BTC have abnormally reduced a number of electronic invoices compared to the used invoices according to Decree No. 51/2010/ND-CP;
• Enterprises have a large revenue and output, input VAT but do not incur VAT payables and have a negative VAT for many periods;
Enterprises have no fixed assets or the value of fixed assets is very low;
Enterprises have suspicious transactions via banks (deposits and withdrawal within the same day);
Enterprises employ workers that are not commensurate with their size and industry
In addition, this official letter also clearly stipulates the time to return the result of invoice verification. Specifically, the tax authorities at all levels shall return verification results within 10 working days from the date of receipt of the verification request form, and within 30 working days for complicated cases.
The Official letter takes effect from June 1, 2022
It is extremely important to understand and identify the risks and signs of violations of each enterprise, so that the enterprise can take timely action to prevent the consequences as well as supplement documents and information. Therefore, enterprises should review their compliance with the managment of invoices and documents based on the list of typical signs of a violation of invoice management as above to assess their own situation and make suitable recommendations. In addition, enterprises can seek the assistance from professional consulting firms to provide review services and make timely accurate and effective recommendations.