On July 11th, the General Department of Taxation released information regarding the recent situation of invoice trading.
Accordingly, the Tax authorities, in coordination with relevant agencies, have reviewed and detected several individuals using fake identity cards/citizen identification cards to establish new businesses or acquire defunct businesses in order to sell illegal invoices to businesses, thereby reducing their tax obligations to the State budget.
Through coordination with relevant authorities, 524 businesses were found to be selling illegal invoices or fictitious invoices (one of the prohibited acts stipulated in Clause 7, Article 6 of the Law on Tax Administration).
"The case of these 524 businesses selling invoices is different from the case of businesses selling goods and then abandoning their registered business address with the tax authorities because the units selling invoices mainly falsified invoices for purchased goods," the General Department of Taxation stated.
The General Department of Taxation has issued a document advising businesses with input invoices from 524 businesses to proactively review and exclude illegal invoices or invoices without accompanying goods in order to adjust tax declarations and accounting correctly to fulfill their tax obligations to the state.
The General Department of Taxation has instructed local tax departments to notify and invite representatives from the 524 high-risk businesses mentioned above to demonstrate the legality of their invoice usage. Businesses can choose to provide explanations in person at the tax office or in writing.
Businesses that have invoices for the purchase and sale of goods that match the actual transactions are required to declare and pay taxes in accordance with current regulations.
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