In early 2023, the General Department of Taxation issued QD-78-02022023-TCTon the set of criteria indicators (CSTC) to evaluate and identify taxpayers showing signs of risk in the management and use of invoices.
Criterion Indicators (CSTC) help tax authorities analyze information, identify taxpayers (NNTs) with signs of risk in the management and use of invoices correctly, and at the same time serve as a basis for for the tax authorities to review and check the actual compliance with legal regulations at the enterprise.
Set of risk assessment criteria for invoices
The Financial Policy Set includes 3 groups corresponding to 3 separate violation handling plans.
Group I: Criteria to determine when taxpayers switch from using an e-invoice without a tax authority code to an e-invoice with a tax authority code
If an enterprise has one of the 1 risk signs below, it must switch from using invoices without tax authorities' codes to invoices with tax authorities' codes.
| STT | Criteria | Criterion index |
| 1 | Criterion 1. General information about the enterprise | 1. Enterprises with equity of less than VND 15 billion and no legal ownership or right to use (suitable for registered business lines) one of the following facilities: factories; factory; warehouse; means of transportation; shops and other facilities on the basis of checking tax declaration dossiers at tax offices. |
| 2 | Criterion 2. Information of the business owner, the legal representative of the enterprise | 2. The enterprise has changed its legal representative and at the same time moved its business location, resulting in the change of the tax authority. |
| 3. The legal representative of the enterprise is prosecuted for tax evasion, crime of illegally trading in invoices and receipts for payment to the state budget. | ||
| 4. The legal representative of the enterprise who is also the legal representative of the enterprise has notified of not operating at the registered address. | ||
| 5. The enterprise has a notice from the tax authority or a competent state management agency that the taxpayer does not operate at the registered address and then has its tax identification number restored and continues to operate. | ||
| 6. The enterprise suspends business or makes a written request for TIN deactivation and then resumes operations or makes a request for TIN restoration but changes its legal representative or changes its head office. The business registration office leads to a change in the tax authority. | ||
| 3 | Criterion 3. Tax declaration and payment situation | 7. Enterprises are late to submit tax declaration dossiers after 30 days from the deadline for submitting tax declaration dossiers. |
| 8. Enterprises with equity of less than VND 15 billion and having revenue from selling goods and providing services declared in the preceding year (except for export revenue) of more than VND 10 billion and having the ratio "Tax book The payable VAT/Revenue from the sale of goods and provision of services” in the period (excluding export revenue) is less than 1%. | ||
| 4 | Criterion 4. Enterprises have associated and suspicious transactions | 9. Enterprises with revenue from selling goods and providing services to enterprises with affiliated relationships account for more than 50% of total revenue from selling goods and providing services. |
| 10. Enterprises have suspicious transactions according to the warning list provided by the State Bank of Vietnam to the General Department of Taxation. |
Group II: Criteria for determining that taxpayers with signs of risk must check the management and use of invoices
This group will identify risky businesses based on the total risk score and the number of risky financial institutions. Based on the total risk score and the number of high-risk financial institutions to give the percentage of risky enterprises that must review and check the management and use of invoices.
| STT | Criteria | Criterion metric | Weight | Scores | |
| 1 | Criterion 1. General information about the enterprise | 1. Up to the time of assessment, the enterprise has a low ratio of “Value of fixed assets/equity”. | 1 | 1 to 100 | |
| 2. The enterprise changes its legal representative or changes its business location, leading to a change in the tax authority. | 1 | 50 | |||
| 2 | Criterion 2. VAT declaration status of enterprises | 3. Enterprises have the ratio "Total revenue from goods sale and provision of services on invoices/Total revenue of goods and services sold". | 1 | 1 to 100 | |
| 4. Within a period of 12 consecutive months up to the time of assessment or from the date of establishment to the time of assessment, for enterprises established under 12 months, the enterprise has many periods of delay in declaring tax declaration dossiers. | Low level of risk | 1 | 10 | ||
| Average level of risk | 20 | ||||
| High level of risk | 50 | ||||
| Very high level of risk | 80 | ||||
| 3 | Criterion 3. Revenue from selling goods and providing services | 5. The enterprise has a large ratio of “Revenue from selling goods and providing services in this period/Revenue from selling goods and providing services in the preceding period”. | 1 | 1 to 100 | |
| 6. Enterprises established for many years without generating any revenue, then resold or transferred to others. | 1 | 60 | |||
| 4 | Criterion 4. Observance of tax obligations to the state budget | 7. Enterprises have a low ratio of “Total VAT payable/Total revenue from selling goods and providing services this period”. | 1 | 1 to 100 | |
| 5 | Criterion 5. Use of invoices by enterprises | 8. Enterprises have a large ratio "Total e-invoices used in this period / Total e-invoices used in the preceding period". | 1 | 1 to 100 | |
| 9. Enterprises have a large ratio "Number of e-invoices with notice of adjustment or replacement/Total e-invoice books used in the period". | 1 | 1 to 100 | |||
| 10. Enterprises have a large ratio of "Total number of canceled e-invoices/Total e-invoices used in the period". | 1 | 1 to 100 | |||
| 6 | Criterion 6. Level of tax administrative violations | 11. In the period of one (01) year up to the time of assessment, the enterprise has been issued many times by the tax authority to issue a decision on sanctioning of administrative violations on taxes and invoices. | Low level of risk | 1 | 10 |
| Average level of risk | 20 | ||||
| High level of risk | 50 | ||||
| Very high level of risk | 80 | ||||
| 12. In the period of one (01) year up to the time of assessment, the tax authority has issued a decision on sanctioning administrative violations on taxes and invoices with the following fines: | Less than 50 million | 1 | 10 | ||
| From 50 million to less than 100 million | 30 | ||||
| From 100 million to less than 200 million | 80 | ||||
Group III: Reference criteria to identify taxpayers with signs of risk who must check the management and use of invoices
Aggregate criteria. Operational status of the enterprise; information of the business owner, the legal representative of the enterprise; Fluctuations in sales of goods and services sold; Status of compliance with tax obligations to the state budget.
1. The enterprise suspends business or makes a written request for TIN deactivation and then resumes operations or makes a request for TIN restoration but changes its legal representative or changes its head office. The business registration office leads to a change in the tax authority.
2. Enterprises with small equity at the same time, short establishment period, frequent change of business address, the legal representative of the enterprise used to be the legal representative of the enterprise. abandoned its business address or went bankrupt and had a sudden increase in revenue compared to the previous period.
3. Enterprises with small equity at the same time, short establishment period, frequent change of business address, large number of invoices and the ratio "VAT payable and CIT payable amount". /Revenue from selling goods and providing services in the period” is low.
4. Enterprises with small equity at the same time; revenue from selling goods and providing services increased sharply compared to the previous period; low ratio of “VAT, payable CIT/Revenue from selling goods and providing services in the period”; large number of bills to use.
5. Enterprises that are generating large revenue or have revenue fluctuating and decreasing compared to the previous year and at the same time have profits from production and business activities > 0 (or have profits from production and business activities). < 0 but low “profit/net sales” ratio) and applied for temporary suspension of business.
6. Other risk assessment criteria and indicators prescribed by the General Department of Taxation.
If the enterprise violates one of the above reference criteria, the enterprise will switch to reviewing and checking the management and use of invoices.
The process of assessing and classifying the level of risk on invoices
Based on the results of risk analysis and risk threshold, a list of taxpayers with high risk signs is given. The head of the tax agency or the head of the risk management department is authorized to approve the list and transfer it to the inspection and inspection department directly managing taxpayers to serve the management and use of invoices.
The deadline is the 28th of every month, the Risk Management department will transfer to the Inspection - Checking Department the list of taxpayers with signs of high risk that has been approved above to serve the review and actual inspection. management and use of invoices. As follows:
- For the list of taxpayers with signs of high risk according to CSTC Group I, the tax authority shall conduct a review to verify the fact that taxpayers are at risk of switching from using e-invoices without codes to e-invoices. tax authority code.
- For the list of taxpayers with signs of high risk according to the results of risk classification at the Financial Services Group II, III, the tax authorities shall base themselves on checking for violations of the law on invoices.
Processing results of analysis of taxpayers with signs of invoice risk
The process of assessing, analyzing information, classifying risk levels is implemented by the tax authority according to Decision 575/QD-TCT. Periodically on the 25th of every month, the Tax Authority will perform analysis and assessment by automatic assessment method based on risk management information updated on the risk management application.
In addition, the General Department of Taxation will issue risk thresholds in conjunction with the Ministry of Finance at QD-78-02022023-TCT as a basis for classifying taxpayers with invoice risks into 3 classes: high risk, medium risk and low risk. At the same time, additional criteria will be applied such as: number of tax declaration periods late; number of times sanctioned for taxes and bills; number of headquarters changes; VAT payment ratio on total revenue... to classify the level of invoice risk of taxpayers.
On May 16, 5, the General Department of Taxation issued Official Letter 2023/TCT-TTKT 1798 on reviewing and handling illegal invoices. In particular, in Appendix 2023 attached to the above dispatch, the General Department of Taxation has published a list of 1 enterprises with high risk in invoice management and at the same time, requested the Tax Departments to focus on reviewing the sales invoices of the above 524 enterprises.
Instructions for looking up enterprises belonging to 524 risky enterprises, violating invoices at the system of the General Department of Taxation are as follows:
- Step 1: Access website http://tracuuhoadon.gdt.gov.vn
- Step 2: Select the List of risky and infringing enterprises => Look up risky and violating enterprises
- Step 3: Enter Tax Authority information and authentication code => Search.
