📌 Summary:
- Inspection objects: Focus on objects signs of violation, at the request of competent authorities, etc.
- Procedure: Prepare & make decision → Conduct at the enterprise → Finalize & issue conclusion.
- Duration: Inspection period from 30–60 days Depending on the level, there is an extension mechanism depending on the complexity.
- Documents required: Corporate legal documents; original documents; accounting software data; submitted declarations/reports; economic contracts; etc.
- Inspection focus: reconciliation of declarations-books-documents; revenue-cost-profit margin; debt; inventory; fixed assets/tools and equipment.
- Frequency & sanctions: Good compliance, low risk businesses are often no more than once a year; failure to comply with the decision may result in tax assessment according to the Law on Tax Administration 2019.
Tax inspector Tax inspection is a compliance monitoring activity of tax authorities to assess the honesty and completeness of enterprises in tax declaration and payment. Tax inspection is carried out on the basis of risk assessment classification and following strict legal procedures. Correct understanding of legal regulations, procedures as well as preparation for receiving inspection teams will help enterprises proactively coordinate, reduce disputes and narrow the risk of handling after inspection.
I. Overview of tax inspection
Tax inspection is an activity of verifying the level of tax law compliance of taxpayers by the tax authority, through data analysis, document comparison and verification of signs of violations. The goal is to assess the honesty and completeness of compliance with regulations on tax declaration and payment of enterprises.
II. When is a business subject to inspection?
According to the Article 113 Law on Tax Administration 2019, enterprises subject to inspection in the following cases:
- There are signs of tax law violations;
- Need to resolve complaints, denunciations or serve the prevention and fight against corruption;
- According to the requirements of tax management based on the results of risk classification;
- According to the recommendations/conclusions of the State audit agency, State inspectorate and other competent agencies.
III. Inspection process at the enterprise
The tax inspection process at enterprises follows a clear business roadmap and closely follows legal regulations. To minimize the risks that may occur during the inspection process, enterprises need to clearly understand this process so that they can proactively coordinate with the inspection team.
The tax authority shall make a list of enterprises subject to inspection at the headquarters based on risk stratification, prioritizing inspection of high-risk entities. At the same time, enterprises that have not been inspected for more than 05 years will also be considered for inclusion in the inspection plan to ensure coverage and comprehensiveness of tax management.
According to the Article 21 Law on Inspection 2025 No. 84/2025/QH15, the inspection process includes three stages:
- Phase 1 – Preparation and Decision Making:
- Step 1: Synthesize documents, determine inspection scope;
- Step 2: Issue inspection decision;
- Step 3: Develop and send an outline requesting the inspected subject to report;
- Step 4: Notification of the announcement of the inspection decision.
- Phase 2 – Conducting the inspection:
- Step 1: Announce the inspection decision;
- Step 2: Collect information and documents related to the inspection content;
- Step 3: Proceed to check and verify information and documents;
- Step 4: Complete the inspection at the company headquarters.
- Phase 3 – Completion of the inspection:
- Step 1: Report inspection results;
- Step 2: Develop and review draft inspection conclusions;
- Step 3: Issue and publicize the inspection conclusion.
IV. What should businesses prepare when receiving an inspection decision?
1. Documents and records
For the inspection process to run smoothly and minimize risks, businesses should proactively review and fully prepare data, records, books and related documents. “Setting the table” in advance not only helps businesses work and coordinate effectively with authorities but also demonstrates transparency and initiative in financial and accounting work at the business.
Documents and records required for an inspection include but are not limited to:
a) Legal documents
Prepare full legal documents of the enterprise such as:
- Business registration certificate, Enterprise registration certificate, Company charter;
- Official correspondence with state agencies (especially tax authorities);
- Other documents related to laws and tax obligations.
b) Original documents
Accounting documents must be stored and arranged monthly, based on the input/output VAT list. Each set of documents must include invoices, contracts, acceptance and liquidation records, warehouse receipts, etc. with full signatures of relevant parties.
Check and request to issue or print full bank subsidiary ledgers during the year to serve the purpose of cash flow reconciliation during the period.
c) Accounting data system
Review and compare data on accounting software based on original invoices and documents stored at the enterprise as well as electronic invoices and documents on the system. Electronic invoice portal of the State. Ensure that the figures are consistent and accurate.
d) Submitted reports
Reports submitted to the Tax Authority are archived for each fiscal year as follows:
- Monthly/quarterly VAT declaration;
- Quarterly provisional corporate income tax declaration;
- Report on invoice usage;
- Annual financial report;
- Corporate income tax settlement records, personal income tax settlement records, tax refund records (if any);
- Accounting books are printed in the correct form as prescribed by law.
e) Economic contracts
Contracts related to the production and business activities of the enterprise such as:
- Input/output contracts with minutes of acceptance, liquidation, handover of assets and classification and storage services for each occurrence, ensuring full signatures of relevant parties;
- Outsourcing contracts such as office rental, vehicle rental, machinery rental, etc.;
- Labor contracts, contract agreements and related documents (contract appendices, personnel decisions, etc.)
f) Overall inspection
Review, check, and compare all data in the books and documents of the enterprise. It is necessary to ensure that the data are consistent and appropriate, and that the signatures on invoices and documents are valid and complete. The contents to be checked include:
- Ledgers and ledgers;
- Accounting books and input and output invoices;
- Accounts receivable, accounts payable and debt confirmation minutes.
2. Inspection content
Although each business has its own unique operating characteristics, the contents that need to be explained during a tax inspection still have common points. Some of the contents that tax inspectors often ask businesses to explain may include:
- VAT declaration & tax account balance: Ensure that the declared figures match the balances on the books, explaining any discrepancies that arise.
- Revenue – cost of goods sold – profit margin: Demonstrate the matching between revenue and related expenses; clarify negative/abnormal margin cases.
- Debt & balance nature: Review unusual balances, verify debt aging and confirm debt to strengthen collection/payment capabilities.
- Inventory & turnover: Verify existence, valuation and circulation; compare inventory with import-export-inventory reports to detect abnormalities.
- Fixed assets & tools: Ensure existence, ownership, depreciation/allocation methods and consistency between general ledger and detailed ledger.
The focus is on consistency across tax returns, general ledgers/sub-ledgers and supporting documents.
3. Order and detailed document requirements for each tax
After the enterprise receives the inspection decision, the tax authority will dispatch a professional team to work at the enterprise with the number of officers and time frame appropriate to the complexity of the accounting records. Each officer will be responsible for inspecting a separate tax. The inspection procedure and necessary documents for each type of tax are as follows:
a) Value Added Tax (VAT)
- Arrange output/input VAT invoices in chronological order and compare with submitted declarations;
- Create a separate summary table for invoices that contain errors, duplicates, missing declarations or mistakes;
- In case of loss of original invoice: attach a notice of loss to the tax authority;
- Cancelled output invoice: prepare a copy of the invoice with the cancellation record;
- For purchases of 05 million VND or more: present non-cash payment documents;
- Prepare an Excel file summarizing all VAT declaration/reporting periods of the enterprise.
b) Personal income tax (PIT)
- Labor contracts of all types (long-term, seasonal, contract, etc.);
- Monthly/quarterly/yearly salary summary, with detailed Excel file;
- Salary payment documents: bank statement/payment order or cash payment voucher;
- Payroll/salary slip and personal income tax deduction certificate for employees who do not sign labor contracts;
- Family deduction registration documents: birth certificate and/or dependent certificate;
- For foreign workers: notarized copies of passport, visa, and labor contract;
- Authorization letter for personal income tax settlement (if the enterprise performs on behalf of the employee);
- Other relevant documents and records (if any).
c) Import and export tax (XNK)
If the business has import and export activities:
- Bilingual foreign trade contract (Vietnamese - English);
- Documents related to import-export activities: commercial invoice, packing list, certificates of origin and quality (CO, CQ), etc.;
- Customs declaration (original or certified copy);
- Documents for payment of import tax and VAT on imported goods;
- Bank payment documents related to international transactions;
- Other supporting documents for comparison and explanation purposes.
d) Special consumption tax (SCT)
For enterprises subject to special consumption tax:
- Documents proving payment of special consumption tax at the previous stage (if any);
- Periodic special consumption tax declaration with receipt/payment voucher;
- Summary table of revenue for goods and services subject to special tax;
- Related documents for comparison: import records, invoices, payment vouchers.
e) Corporate income tax (CIT)
- Complete set of accounting books, signed and stamped as prescribed;
- Accounting documents: receipts, payments, warehouse receipts, accounting vouchers;
- Contract for purchase and sale of goods/services with quotation and payment documents;
- Fixed asset records: handover minutes, sales contracts, depreciation tables;
- Cost documents: cost allocation table, prepaid expenses;
- Internal decisions related to wages, depreciation, and material consumption norms;
- Minutes of inventory of funds/warehouses and records of handling damaged goods and inventory;
- Approval of expenses and financial reports for each year;
- Debt reconciliation records, deferred payment contracts, debt collection documents;
- Business legal documents: Business registration certificate, charter, appointment decision, etc.
V. Some things to know about tax inspection
1. Time limit for announcing inspection decision and inspection period
According to the Clause 4 Article 26 Law on Inspection 2025, inspection decisions must be announced in 15 days from the date of issue.
According to the Article 20 According to the Law, the timeframe for tax inspection is as follows:
- Conducted by the Government Inspectorate: maximum 60 days; complex cases can be extended once maximum 30 days; In particularly complicated cases, the deadline can be extended a second time up to 20 days.
- Conducted by the Inspectorate of the Ministry of National Defense, the Inspectorate of the Ministry of Public Security, the Inspectorate of the State Bank, and the Provincial Inspectorate: max 45 daysIn complicated cases or in mountainous, border, island, remote or difficult-to-travel areas, the deadline may be extended once. 25 days.
- Conducted by the Cryptographic Inspectorate, Inspectorate under international treaties and other inspection agencies in the People's Army, People's Public Security, and State Bank of Vietnam.: maximum 30 daysIn complicated cases or in mountainous, border, island, remote or difficult-to-travel areas, the deadline may be extended once. 10 days.
2. Inspection frequency
Frequency of tax inspections at enterprises not specifically defined in the Law on Tax Administration and depends on many factors. Normally, if a business complies well with tax regulations and not in the high risk group, tax authorities often Do not conduct inspection more than once a year.
For special cases such as corporate restructuring (conversion of type, merger, consolidation, separation, dissolution or termination of operations), the tax authority may organize check at headquarters with frequency limited to no more than once a year.
To minimize the possibility of being inspected regularly, businesses should maintain a transparent accounting system, compliance with tax standards and regulations consistently
3. Consequences of not complying with the inspection decision
Failure to comply with a tax inspection decision can lead to many serious legal consequences. Specifically, according to Clause 1 Article 50 Law on Tax Administration 2019If the taxpayer does not comply with the tax inspection decision, the tax authority has the right to tax assessment measures.
Tax assessment is the act of the tax authority calculating, determining and giving the amount of tax that the enterprise is required to pay due to non-compliance with the regulations on tax declaration and payment. Enterprises need to pay attention to properly and fully comply with the obligations of registration, declaration and tax payment to avoid tax assessment and protect their legitimate rights.
👉 See more: Tax Assessment for Businesses: What You Need to Know
VI. Distinguishing between 'tax inspection' and 'tax audit'
At first glance, these two concepts seem to be the same, but tax audit and tax inspection activities have the following fundamental differences:
|
Criteria |
Tax Inspection |
Tax inspector |
|
Define |
Regular business activities to assess the completeness and accuracy of tax records and the level of compliance. |
Assess taxpayers' compliance with the law, verify and collect evidence to determine tax violations. |
|
Nature |
According to the management of tax authorities. |
Planned or ad hoc when there is a management request, risk, or sign of violation. |
|
Limit |
Take place regularly and continuously |
Focus on objects with signs of violation. |
|
Place of performance |
At the tax office or taxpayer's headquarters. |
Just at the taxpayer's headquarters. |
|
Duration |
Not too much 10 working days at the company headquarters; one-time extension, maximum 10 more days; make a record within 05 days after the end. |
From 30 to 60 days, the number of extensions and the extension period depend on the inspection level. |
|
Scale of review |
Primarily during the test recorded on the decision. |
Scale wider; can also review data from previous audits. |
|
Authorization |
Tax Inspection Department, Department, Division, Team assigned with tax inspection functions and tasks under tax authorities at all levels |
Tax Department, General Department of Taxation |
To be ready for tax inspections, businesses need to build a compliance management framework: standardize documents, conduct periodic internal audits and assign working points. A proactive and transparent approach not only shortens the time spent working with the inspection team but also limits the risk of tax imposition, protecting the legitimate interests of businesses.