Businesses should take advantage of invoice lookup systems to minimize risks.

Businesses "complain about difficulties"

The General Department of Taxation has recently requested tax departments of provinces and cities to focus on reviewing invoices issued by risky enterprises. In case of detecting that enterprises have used invoices in risky enterprises, the enterprises will be required to explain and clarify the use of invoices. Based on actual violations and regulations in legal documents, tax departments will handle or consolidate documents and transfer to the police for handling.

Although it is known that enterprises must clarify the use of invoices to deduct VAT/refund VAT, calculate expenses for corporate income tax, etc., which is necessary in tax management, explaining related invoices is creating great pressure for enterprises. As some accountants shared, "we did not know that the enterprise had invoice risks until the tax authority sent a document requesting an explanation".

This person said that when making transactions, enterprises still issue invoices, but when submitting invoices for legalization, they receive a decision to explain from the tax authority because the enterprise issuing invoices is an enterprise with invoice risks. In fact, when purchasing goods, enterprises do not know that the enterprise is at risk. And explaining invoices is sometimes very difficult, especially for transactions with a long purchase and sale period, and it is impossible to remember the details of each incident.

Many businesses believe that the tax sector should have more fundamental solutions to prevent risky businesses from issuing invoices, or have early warning solutions for businesses so that they do not have to worry about "getting risky invoices".

In fact, during the operation process, it is not uncommon for enterprises to encounter risks related to invoices. With sales invoices, enterprises may encounter risks related to incorrect sales invoices such as: Incorrect customer name, product name, incorrect quantity, unit price, incorrect tax, etc. Enterprises actually sell goods and issue invoices in accordance with regulations, but enterprises that purchase goods for some reason are subject to invoice risks or risks of incorrect tax rates. For purchase invoices, there may be risks related to receiving purchase invoices from enterprises with invoice risks; risks of receiving purchase invoices with missing or incorrect information; risks of receiving purchase invoices with incorrect tax rates.

These risks, if not detected and promptly resolved, will affect the enterprise. Specifically, enterprises issuing invoices or receiving purchase invoices with missing or incorrect information, if not detected and adjusted promptly, will lead to failure to ensure the proof of the enterprise's purchasing activities. Enterprises may be required to explain and re-determine revenue for the seller or affect input costs and deductible input value-added tax for the buyer.

In case of purchase and sale transactions with enterprises that are at risk of invoices, enterprises need to collect documents to prove that the purchase and sale activities actually occurred. The purchasing enterprise may have its expenses and deductible value-added tax deducted from these invoices excluded. If enterprises do not update information and promptly grasp the provisions of the law, it will lead to incorrect determination of tax rates, causing enterprises to be subject to additional collection, penalties or reduction of deductible value-added tax.

Raise awareness of using invoices

According to the leader of the Provincial Tax Department, in the past, when using paper invoices, cases where taxpayers intentionally committed violations related to invoices were only discovered through tax inspections and audits. However, when applying the electronic invoice system, all data of buyers and sellers is stored and integrated with the data system of the management agency. Therefore, violations related to invoices are easily detected and handled according to regulations.

To minimize the risks that businesses encounter when using invoices, the Thua Thien Hue Tax Department is implementing many solutions to accompany businesses in managing and using invoices. On the one hand, the tax authority regularly propagates and diversifies forms of guidance for taxpayers in using and handling risky invoices. At the same time, it strengthens the review and handling of cases of businesses showing signs of high risks in buying and selling invoices such as: generating unexpected revenue, issuing invoices in large quantities that are not commensurate with the scale of operations, not suitable for the business line according to business registration...

The Tax Authority has deployed an invoice risk management system, requiring businesses with signs of high tax and invoice risks to explain and provide documents proving their trading activities on a monthly and quarterly basis. In cases of violations with large values, the records will be transferred to the police for coordination in handling according to regulations.

Ms. Au Thi Nguyet Lien, Head of the Department of Propaganda and Taxpayer Support, Provincial Tax Department shared that currently, the electronic invoice and electronic tax systems have been deployed and continuously upgraded by the General Department of Taxation to serve the convenience and transparency of taxpayers in searching and using them. Enterprises need to take advantage of this system to review, look up information, and cross-check between enterprises. At the same time, enterprises need to improve their understanding of tax law, promptly grasp new tax policies to apply appropriately to the business practices of the unit to ensure compliance with legal regulations, and raise awareness of compliance and compliance with tax laws. Enterprises need to be aware of the risks of buying and selling, using illegal invoices to legalize the expenses of enterprises and sanctions in case of review and inspection by tax authorities. Ensure full storage of documents proving the actual purchase and sale of goods and provision of services of enterprises.

Article and photos: Hoang Loan