On March 02, 2024, the General Department of Taxation issued... 1336-TCT-TTKT Regarding strengthening tax management for goods purchases made using the Invoice form.
Accordingly, the directive instructs tax departments to strengthen verification of cases involving the purchase of goods and services using the "List of Items" method to determine their reasonableness and legality... as a basis for determining deductible expenses when calculating corporate income tax in a reasonable and proper manner, avoiding revenue losses for the State budget.
Point 2.2, Section II, Inspection Results at Saigon Tobacco Company (page 13 of the Inspection Conclusion) states:
“During the period from 2013 to 2017, Ben Tre Tobacco Company, Hoa Viet Joint Stock Company, An Giang Tobacco Company, Dong Thap Tobacco Company, and Cuu Long Tobacco Company, all member companies of Saigon Tobacco Company, had several contracts to purchase tobacco raw materials from Tuan Dung Private Enterprise (Binh Loi Hamlet, Hao Duoc Commune, Chau Thanh District, Tay Ninh Province).”
The records provided by Tuan Dung Private Enterprise show that some tobacco raw materials were purchased directly from tobacco growers in Tay Ninh province (a list of purchased goods without invoices was compiled).
The verification results of the tobacco raw material purchase by Tuan Dung Private Enterprise show that many people whose names appear on the list of tobacco raw material purchases from growers are not actually... Do not grow or sell raw materials. "Tobacco for Tuan Dung Private Enterprise."
1. Strengthen communication and upgrade applications for managing personal income tax.
Tax authorities, in their tax inspection and audit work, are strengthening the verification of cases involving the purchase of goods and services using the list of items as stipulated in point 2.4, clause 2, Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, of the Ministry of Finance (amended by Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015) to determine the reasonableness and legality... as a basis for determining deductible expenses when calculating corporate income tax in a reasonable and proper manner, avoiding revenue loss for the State budget.
Note for businesses that have Violations committed by private enterprise Tuan Dung As stated in Inspection Conclusion No. 966/KL-TTCP dated September 20, 2022, of the Government Inspectorate.
2. Handling violations in the procurement of goods using the Invoice form.
If, through inspection, examination, or verification, violations of tax laws are discovered in businesses, they will be handled according to regulations; if there are signs of criminal activity, the case will be transferred to the relevant authorities for handling in accordance with the law.
See the article for more detailed instructions on creating a purchase order. Handbook | Guide to Purchasing Goods and Services Using the Invoice Method
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