📌 Summary:
- Subjects of inspection: Focus on the target audience. There are signs of violations. as recommended by the competent authority, etc.
- Procedure: Preparation & Decision Making → Implementation at the Company → Conclusion & Issuance of Results.
- Duration: Inspection period from 30–60 days Depending on the level, there is a renewal mechanism based on the complexity.
- Documents required: Business legal documents; original documents; accounting software data; submitted declarations/reports; economic contracts; etc.
- Inspection focus: Comparison of declarations, accounting records, and supporting documents; revenue, cost of goods sold, and profit margin; accounts payable; inventory; fixed assets/tools and equipment.
- Frequency & penalties: Businesses that comply well and have low risk usually no more than once a yearFailure to comply with the decision may result in punishment. tax assessment According to the Tax Administration Law 2019.
Tax inspector Tax audits are compliance monitoring activities conducted by tax authorities to assess the honesty and completeness of businesses in declaring and paying taxes. Tax audits are carried out based on risk assessment and follow strict legal procedures. A proper understanding of legal regulations, procedures, and preparation for the audit team will help businesses proactively cooperate, reduce disputes, and minimize post-audit risks.
I. Overview of tax inspection
Tax inspection is an activity carried out by the tax authorities to verify the level of compliance with tax laws by taxpayers, through data analysis, record comparison, and verification of signs of violations. The goal is to assess the honesty and completeness of businesses in complying with regulations on tax declaration and payment.
II. When is a business subject to inspection?
According to the Article 113 Law on Tax Administration 2019Businesses are subject to inspection in the following cases:
- There are signs of tax law violations;
- It is necessary to address complaints and denunciations or to serve the prevention and fight against corruption;
- In accordance with the requirements of tax administration based on the results of risk classification;
- Based on recommendations/conclusions of the State Audit Office, the State Inspectorate, and other competent authorities.
III. Inspection process at enterprises
The tax audit process at businesses follows a clear operational roadmap and adheres closely to legal regulations. To minimize potential risks during the audit, businesses need to understand this process so they can proactively cooperate with the audit team.
The tax authorities compile a list of businesses subject to on-site inspections based on risk stratification, prioritizing those with high risk levels. Simultaneously, businesses that have not been inspected for more than five years will also be considered for inclusion in the inspection plan to ensure comprehensive coverage and thoroughness of tax management.
According to the Article 21 According to Law No. 84/2025/QH15 on Inspection 2025, the inspection process consists of three stages:
- Phase 1 – Preparation and Decision Making:
- Step 1: Compile documents and determine the scope of the inspection;
- Step 2: Issue the inspection decision;
- Step 3: Develop and submit a draft request for the audited entity to report on the matter;
- Step 4: Announce the announcement of the inspection decision.
- Phase 2 – Conducting the inspection:
- Step 1: Announce the inspection decision;
- Step 2: Gather information and documents related to the inspection content;
- Step 3: Proceed with checking and verifying information and documents;
- Step 4: Conclude the inspection at the company's headquarters.
- Phase 3 – Conclusion of the inspection:
- Step 1: Report the inspection results;
- Step 2: Draft and review the inspection report's conclusions;
- Step 3: Issue and publicize the inspection findings.
IV. What preparations should businesses make when receiving an inspection notice?
1. Documents and records
To ensure a smooth inspection process and minimize potential risks, businesses should proactively review and prepare all relevant data, records, books, and documents. This preparation not only helps businesses work and cooperate effectively with authorities but also demonstrates transparency and proactiveness in their financial and accounting practices.
Documents and records that need to be prepared for the inspection include, but are not limited to:
a) Legal documents
Prepare all necessary legal documents for the business, such as:
- Business registration license, Enterprise registration certificate, Company charter;
- Correspondence with government agencies (especially tax authorities);
- Other documents relating to laws and tax obligations.
b) Original supporting documents
Accounting documents should be stored and organized by month, based on input/output value-added tax statements. Each set of documents must include all invoices, contracts, acceptance reports, liquidation reports, warehouse receipts, etc., with full signatures of all relevant parties.
Inspect and request the issuance or printing of complete bank statements for the year to facilitate the reconciliation of cash flow during the period.
c) Accounting data system
Review and compare data in the accounting software based on original invoices and documents stored at the company, as well as electronic invoices and documents in the system. Electronic invoice portal of the State. Ensure that the data matches and is accurate.
d) Submitted reports
The reports submitted to the Tax Authority are archived by fiscal year as follows:
- Monthly/quarterly VAT tax return form;
- Quarterly provisional corporate income tax return;
- Report on invoice usage status;
- Annual financial report;
- Corporate income tax and personal income tax settlement documents, tax refund documents (if any);
- The accounting books are printed in accordance with legal regulations.
e) Economic contract
Contracts related to the business operations of an enterprise include:
- Input/output contracts, along with acceptance, liquidation, and handover records of assets and services, are categorized and stored separately for each transaction, ensuring they bear the signatures of all relevant parties.
- Outsourcing contracts include renting office space, vehicles, machinery, etc.
- Employment contracts, subcontracting agreements, and related documents (contract addendums, personnel decisions, etc.)
f) Overall inspection
Review, verify, and compare all data in the company's books and documents. Ensure that the figures match and are consistent, and that the signatures on invoices and documents are valid and complete. The areas to be checked include:
- Detailed ledger and general ledger;
- Accounting records and input/output invoices;
- Accounts receivable, accounts payable, and debt confirmation statements.
2. Inspection content
Although each business has its own unique operating characteristics, the issues that need to be explained during a tax audit still have some common points. Some of the issues that tax auditors often request businesses to explain may include:
- VAT tax return and tax account balanceEnsure that the declared figures match the balances in the books, and explain any discrepancies that arise.
- Revenue – Cost of Goods Sold – Profit MarginDemonstrate the consistency between revenue and related expenses; clarify any negative/anomalous circumstances.
- Accounts payable & balance characteristicsReviewing unusual balances, assessing the reasonableness of debt aging, and confirming accounts receivable to strengthen the likelihood of recovery/payment.
- Inventory & TurnoverVerify existence, valuation, and movement; compare inventory with in-out-inventory reports to detect anomalies.
- Fixed assets & tools and equipment: Ensure the existence, ownership, depreciation/allocation methods, and consistency between the general ledger and subsidiary ledgers.
The focus is on consistency throughout the tax return, ledger/sub-ledger, and supporting documents.
3. Detailed document order and requirements for each type of tax.
After a business receives an inspection notice, the tax authority dispatches a team of inspectors to the business, with the number of officers and timeframe appropriate to the complexity of the accounting records. Each officer will be responsible for inspecting a specific type of 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 them with the submitted tax returns;
- Create a separate summary table for invoices that contain errors, duplications, omissions, or mistakes in declaration;
- In case of loss of the original invoice: attach a notification letter to the tax authority stating the loss;
- Canceled outgoing invoices: prepare a copy of the invoice along with the cancellation record;
- For invoices of 05 million VND or more: please present proof of non-cash payment.
- Prepare an Excel file summarizing all VAT tax declarations/reports of the business.
b) Personal Income Tax
- Various types of employment contracts (long-term, seasonal, piecework, etc.);
- Salary summary table by month/quarter/year, with detailed Excel file included;
- Documents proving salary payment: bank statement/payment order or cash disbursement voucher;
- Payroll slips/payslips and personal income tax deduction certificates for employees without labor contracts;
- Documents required for family allowance deduction: child's birth certificate and/or dependent certificate;
- For foreign workers: a copy of passport, visa, and notarized employment contract;
- Authorization letter for personal income tax final settlement (if the company handles it on behalf of the employee);
- Other relevant documents and records (if any).
c) Import and export taxes
If the business is involved in import and export activities:
- Bilingual (Vietnamese - English) international trade contract;
- Documents related to import and export activities include: commercial invoices, packing lists, certificates of origin and quality (CO, CQ), etc.
- Customs declaration form (original or certified copy);
- Documents proving payment of import duties and VAT on imported goods;
- Bank payment documents related to international transactions;
- Other supporting documents for verification and explanation purposes.
d) Excise tax
For businesses subject to excise tax:
- Documents proving that excise tax has been paid in the previous stage (if applicable);
- Special Consumption Tax declaration form for each period, accompanied by payment receipts/documents;
- Summary table of revenue for goods and services subject to special consumption tax;
- Relevant documents for comparison: import records, invoices, payment documents.
e) Corporate Income Tax (CIT)
- The accounting records are complete, signed, and stamped as required.
- Accounting documents include: receipts, payments, inventory receipts/delivery notes, and accounting vouchers.
- A contract for the purchase and sale of goods/services, including quotations and payment documents;
- Fixed asset records: handover minutes, sales contracts, depreciation schedules;
- Cost documentation: cost allocation schedule, prepaid expenses;
- Internal decisions regarding salaries, depreciation, and material consumption norms;
- Inventory records of cash/warehouse and records of handling damaged or leftover goods;
- Documents for approval of expenses and financial reports for each year;
- Documents for reconciling accounts payable, deferred payment contracts, and debt collection letters;
- Business legal documents: Business registration certificate, articles of incorporation, appointment decisions, etc.
V. Some things to know about tax inspections
1. Timeframe for announcing the inspection decision and the inspection period.
According to the Clause 4 Article 26 According to the 2025 Inspection Law, inspection decisions must be published. 15 days since the date of issuance.
According to the Article 20 In accordance with the law, the timeframe for tax audits is as follows:
- Conducted by the Government Inspectorate.maximum 60 daysIn complex cases, the deadline may be extended once, up to a maximum of once. 30 daysIn exceptionally complex cases, a second extension may be granted for a maximum of 10 times. 20 days.
- Conducted by the Inspectorate of the Ministry of National Defence, the Inspectorate of the Ministry of Public Security, the Inspectorate of the State Bank of Vietnam, and the Provincial Inspectorate: max 45 daysIn complex cases or in mountainous, border, island, or remote areas with difficult access, the extension may be granted a maximum of one time. 25 days.
- Conducted by the Cryptography Inspectorate, the Inspectorate in accordance with international treaties, and other inspection agencies in the People's Army, the People's Public Security, and the State Bank of Vietnam.maximum 30 daysIn complex cases or in mountainous, border, island, or remote areas with difficult access, the extension may be granted a maximum of one time. 10 days.
2. Inspection frequency
Frequency of tax audits at businesses not specified This is in the Tax Administration Law and depends on many factors. Generally, if a business complies well with tax regulations and not in the high-risk groupThe tax authorities usually Inspections should not be conducted more than once a year..
For specific cases such as corporate restructuring (Change of business type, merger, consolidation, split, dissolution, or cessation of operations)The tax authorities can organize inspection at headquarters with frequency Limit to no more than once a year.
To minimize the likelihood of being subjected to frequent inspections, businesses should Maintain a transparent accounting record system., Comply with tax standards and regulations. consistently.
3. Consequences of failing to comply with inspection decisions.
Failure to comply with tax audit decisions can lead to serious legal consequences. Specifically, according to Clause 1 Article 50 Law on Tax Administration 2019If the taxpayer fails to comply with the tax audit decision, the tax authority has the right to... apply tax assessment measures.
Tax assessment is the process by which tax authorities calculate, determine, and impose the amount of tax that a business is required to pay due to non-compliance with tax declaration and payment regulations. Businesses need to pay attention to complying fully with their registration, declaration, and tax payment obligations to avoid tax assessments and protect their legitimate rights.
👉 See more: Tax Assessment for Businesses: Essential Information
VI. Distinguishing between 'tax inspection' and 'tax audit'
At first glance, these two concepts seem the same, but tax audits and tax inspections have fundamental differences as follows:
|
Criteria |
Tax audit |
Tax inspector |
|
Define |
Regular operational activities aim to assess the completeness and accuracy of tax records and the level of compliance. |
Assessing taxpayers' compliance with the law, verifying and gathering evidence to determine tax violations. |
|
Nature |
According to the tax authority's management procedures. |
As planned or unexpectedly When there are management requirements, risks, or signs of violations. |
|
Limit |
Take place frequently and continuously. |
Focus on the target audience. with signs of violation. |
|
Place of performance |
At the tax office or taxpayer's headquarters. |
Just at the taxpayer's premises. |
|
Duration |
Not too much 10 working days at the company headquarters; renew once, up to an additional 10 days; record the details within 05 days after it's finished. |
From 30 to 60 daysThe number of extensions and the duration of the extensions depend on the inspection level. |
|
Scope of review |
Primarily during the exam as stated in the decision. |
Scale widerIt is possible to review data from previous inspections. |
|
Authorization |
The Tax Inspection and Audit Department, Divisions, Offices, and Teams are assigned the function and task of tax inspection within the tax authorities at all levels. |
Tax Department, General Department of Taxation |
To prepare for tax audits, businesses need to establish a compliance management framework: standardizing documentation, conducting regular internal audits, and assigning a point of contact. A proactive and transparent approach not only shortens the time spent working with the audit team but also reduces the risk of being overcharged, protecting the legitimate interests of the business.