5 Criteria for Identifying High-Risk Businesses When Registering to Use E-Invoices – What Companies Must Understand

During the assessment of e-invoice registration applications, the tax authorities evaluate the risk level of each enterprise based on specific criteria. If a company is classified as “high risk,” the likelihood of being inspected, verified, or required to provide explanations increases significantly.

Below are the 05 high-risk criteria specified in Article 9 of Circular 32/2015/TT-BTC that businesses must pay close attention to:

Criterion 1: Involvement in Invoice Fraud Activities

The enterprise or its owner/legal representative has been concluded by a competent authority to be involved in invoice fraud or the buying and selling of invoices on the tax authority’s database.
➡️ Even a single past incident is enough for the enterprise to be placed under strict monitoring.

Criterion 2: Suspicious Financial Transactions

The enterprise’s owner or legal representative is listed as having suspicious transactions as defined under the Anti-Money Laundering Law.
➡️ This indicates that the business may be subject to more rigorous scrutiny when registering for e-invoices.

Criterion 3: Unclear or Invalid Registered Business Address

The enterprise registers a business address that:

• Has no specific or identifiable location,
• Is located in an apartment building not allowed for business use,
• Or registers business activities outside the province where the main office or branch is located.
  ➡️ This is a key indicator used by tax authorities to detect potential “shell companies.”

Criterion 4: Owner/Legal Representative Linked to Companies That Ceased Operations Without Proper Termination

If the current legal representative or owner is also the legal representative/owner of another enterprise that:

• Has ceased operations but has not completed tax code termination,
• Is not operating at the registered address,
• Or has committed violations related to invoices or supporting documents,
  ➡️ the newly established company will be immediately classified as high-risk.

Criterion 5: Other Risk Indicators Identified by the Tax Authority

The tax authority has detected other unusual risk indicators and has issued a formal request for explanation.
➡️ These risks typically relate to abnormal fluctuations such as: the legal representative being listed on another high-risk enterprise.

How Can Businesses Avoid Being Classified as “High Risk”?

✔ Ensure transparency in tax registration documents
✔ Verify the legality of the business address
✔ Review the background of the owner & legal representative
✔ Fully comply with tax and invoice obligations
✔ Proactively communicate with tax authorities when requested

TPM Tax Agency – Supporting Businesses in Managing Tax and E-Invoice Risks

We provide:

• Advisory services on tax and invoice risk assessment under the latest regulations
• Verification of the legal compliance of e-invoice registration documents
• Periodic tax compliance review
• Representation in working with tax authorities when the enterprise receives inspection notices

👉 Contact TPM for a free consultation and minimize risks for your business from the very beginning.