In Vietnam procedures for tax inspection visit at tax authorities

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• Procedures for tax inspection visit at tax authorities in Vietnam

Procedures for tax inspection visit at taxpayers' premises in Vietnam

Pursuant to Clause 5, Article 72 of Circular 80/2021/TT-BTC:

5. Procedures for tax inspection visit

a) Issuance of the tax inspection decision

The tax authority shall issue the tax inspection decision in the cases specified in Article 110 of the Law on Tax Administration. A tax inspection visit may only be carried out after a decision on tax inspection visit is issued.

The tax authority shall issue the tax inspection decision regarding the contents and periods with risks, except tax refund inspection. Tax inspection decisions shall be prepared according to Form No. 04/KTT in Appendix I hereof.

Duration of the inspection visit shall be determined according to Clause 4 Article 110 of the Law on Tax Administration. In case of extension, the chief of the inspectorate shall request a competent person to issue an extension decision according to Form No. 05/KTT in Appendix I hereof.

b) The inspection visit under the tax inspection decision shall be carried out within 10 working days from the issuance date of the tax inspection decision, unless it has to be revoked according to Form No. 06/KTT in Appendix I hereof or the inspection visit has to be postponed.

At the beginning of the inspection, the chief of the inspectorate shall announce the tax inspection decision and issue a record on announcement and explanation of the tax inspection decision according to Form No. 07/KTT in Appendix I of this Circular in order to make sure the taxpayer understands and comply with the tax inspection decision.

c) In case the taxpayer submits a written request for postponement of the inspection, the request shall specify the reasons and the duration of postponement. In case the tax authority has to postpone the inspection due to a force majeure event, the tax authority shall send a written notification to the taxpayer before the deadline for announcing the tax inspection decision according to Form No. 08/KTT in Appendix I hereof.

In case of the inspection cannot continue due to a force majeure event, the chief of the inspectorate shall submit a report to the person that issued the tax inspection decision in order to suspend the inspection. The suspension period shall not be included in the inspection time.

d) In case the tax inspection decision has to be revised (change of chief or member of the inspectorate, addition of inspection contents, change of inspection period or reduction of inspectorate members, inspection contents or inspection period), the chief of the inspectorate shall request the competent person to issue a decision on revisions to the tax inspection decision according to Form No. 09/KTT, 10/KTT, 11/KTT in Appendix I hereof.

dd) Tax inspection record

 dd.1) At the end of the tax inspection visit, the inspectorate shall draft the inspection record according to Form No. 12/KTT in Appendix I hereof and disclose it to the inspectorate and the taxpayer in order for them to comment and explain. The taxpayer's comment and explanation (if any) shall be attached to the draft record. The record on disclosure of the draft inspection record shall be prepared according to Form No. 13/KTT in Appendix I hereof.

 The provision of explanation, completion and signing of the inspection record between the inspectorate and the taxpayer shall be done within 05 working days from the end of the inspection. Additional comments of the taxpayer shall be written in the record or attached to the signed record. Every page of the inspection record shall bear the signatures and seals of the chief of the inspectorate and the taxpayer (or the taxpayer's legal representative) if the taxpayer is an organization and has its own seal (including separate seals and overlapping seals on the pages of the record).

dd.2) Any difficulties in terms of policies and mechanisms shall be specified in the record. When a response is provided, the inspectorate or inspecting unit shall prepare an appendix to the record according to Form No. 14/KTT in Appendix I hereof.

dd.3) In case the taxpayer fails to sign the inspection record by the deadline, the chief of the inspectorate shall issue a administrative violation record and request a competent person to issue a decision on penalties for administrative violations as per regulations and request the taxpayer to sign the inspection record.

e) Handling inspection results

e.1) Within 03 working days from the day on which the inspection record is signed by the taxpayer, the chief of the inspectorate shall report the result to the chief of the inspection unit and the person that issued the tax inspection decision.

In case the inspection result requires tax actions or imposition of administrative penalties, the head of the tax authority shall issue a tax penalty decision or transfer documents to a person with power to impose penalties. In case the inspection result does not requires tax actions or imposition of administrative penalties, the person that issued the tax inspection decision shall issue a conclusion according to Form No. 15/KTT in Appendix I hereof.

e.2) In case tax evasion or tax fraud is suspected during tax inspection, the inspectorate shall report to the head of the tax authority within 05 working days in order to carry out a more thorough inspection or transfer the case to an investigation authority as prescribed by law.

 Procedures and time limit for issuing the decision on imposition of penalties for tax offences or transferring documents to the person with power to impose penalties or transferring documents to an investigation authority shall comply with the Law on Actions Against Administrative Violations, the Law on Criminal Procedures, their elaborating documents and the Government’s Decree No. 125/2020/ND-CP dated 19/10/2020 in administrative penalties for tax- and invoice-related offences.

g) Inspection visits shall be logged electronically.

Best regards!