Bring Tax Administration Law into practice

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	Highlights in Tax Management Law No. 38 taking effect from July 1, 2020

The Tax Administration Law No.38/2019/QH14 will take effect from July 1. Photo: T.L

Many contents are supplemented

Luu Duc Huy, Director of the Policy Department (under the General Department of Taxation), said that to put the law into practice, the Ministry of Finance will develop five decrees and eight circulars. The General Department of Taxation and General Department of Vietnam Customs wereassigned by the Ministry of Finance to develop these contents, of which the General Department of Taxation will develop four decrees and the General Department of Vietnam Customs will develop one decree.

“Currently, the General Department of Taxation has perfected the draft guiding decrees that are submitted by the Ministry of Finance to the Government for consideration and promulgation, including the draft decree stipulating a number of articles of the Tax Administration Law and the decree on invoice and document. In addition, the remaining decrees and circulars have been implemented steps according to the provisions of the Law on Promulgation of Legal Documents,” Huy said.

Some outstanding contents in the Tax Administration Law No.38 have beensupplemented compared to the current law such as the extending deadlines for submitting tax finalisation dossiers, expanding rights of taxpayers, specifying and further managing associated transactions.

Specifically, taxpayers shall have a variety of benefits such as being supported and guided the tax payment, provided information and documents to fulfill tax obligations and benefits; received documents related to tax obligations of agencies when conducting inspections and audits.

Taxpayers have the right to request tax authorities explain the tax calculation and tax assessment; request agencies and organisations to assess the quantity, quality and categories of import and export goods.

In addition, taxpayers have the right to keep confidential information, except for information that must be submitted to the State agencies or tax information must be publicisedper provisions of the law.

The law also supplements prohibited acts in tax administration compared to the current law like concluding, engaging, covering between taxpayers and tax officials, tax administration authorities to transfer prices, evade tax; selling goods and providing services without invoices, using illegal invoice and illegally using invoices; obstructing tax officials from performing their duties; deliberately failing to declare or declaring tax inadequately, promptly and accurately forpayable tax amounts.

The use of e-invoicing is mandatory from July 1, 2022

Regarding e-invoices, Huy said that as per provisions of the Tax Administration Law No.38, this content will take effect from July 1. However, the General Department of Taxation also encourages agencies, organisations and individuals for using e-invoicesto use e-invoices and e- documents before July 1, 2022.

Accordingly, the Law on Tax Administration No. 38 provides when selling goods or providing services, the seller must make an e-invoice to deliver to the buyer in the standard data format prescribed by the tax authority and must fill contents according to the provisions of tax law andaccounting law, regardless of the value of each sale of goods or provision of services.

Enterprises and economic organisations must use electronic invoices with codes issued tax authorities when selling goods or providing services regardless of the value of each sale of goods or provision of services.

Business households and individuals that pay tax by the poll tax method and cases that can determine turnover when selling goods or services must use electronic invoices with codes issued by tax agencies when selling goods or providing services.

The General Department of Taxation noted if business households and individuals that do not meet the conditions to use electronic invoices with the codes of tax authorities but need e-invoices to deliver their customers or if enterprises, economic organisations and other organizations are accepted by e-tax authorities to issue electronic invoices to customers, shall be provided with e-invoice codes by tax authorities upon each transaction and must declare and pay tax before when the e-invoices are issued.