1. Distinguishing Tax Audits from Tax Inspections

Tax Audits:

• Objective: To assess the completeness and accuracy of information and documents in tax records or to evaluate taxpayers’ compliance with tax laws.
• Scope: More limited, focusing on specific aspects such as tax declarations, tax payments, invoice and document declarations, etc.
• Implementation Procedure: Generally simpler, can be conducted through file reviews at the tax office or direct on-site inspections at the taxpayer’s premises. Shorter implementation period compared to tax inspections.

Tax Inspections:

• Objective: To promptly detect, prevent, and handle tax violations and combat tax evasion.
• Scope: Broader, encompassing all aspects related to taxpayers’ compliance with tax laws.
• Implementation Procedure: More complex, often requiring the issuance of an inspection decision, the preparation of a detailed inspection plan, and the completion of various procedures as prescribed by law. Longer implementation period compared to tax audits.

2. Common Procedure for Tax Audits and Inspections

Planning Tax Audits and Inspections

• Tax authorities base their audit and inspection plans on risk criteria, collected information, and the industry’s overall plan. 
• The tax audit and inspection plan must clearly identify the audit targets, audit content, audit time, inspection team members, and the responsibilities of each member.

Issuing Tax Audit and Inspection Decisions

• Tax authorities issue tax audit and inspection decisions for each specific target. 
• The tax audit and inspection decision must clearly state information such as the decision number, date of issuance, issuing authority, audit target, audit content, audit time, inspection team members, and other necessary information.

Conducting Tax Audits and Inspections

• The inspection team visits the taxpayer’s premises to examine records, books, documents, and perform other inspection activities as prescribed by law. 
• The taxpayer is responsible for providing complete, accurate, and timely records, books, documents, and relevant information to the inspection team.

Preparing Tax Audit and Inspection Reports

• After completing the tax audit and inspection, the inspection team must prepare a tax audit and inspection report. 
• The tax audit and inspection report must clearly state the audit results, violations discovered (if any), proposed handling of violations, taxpayer’s opinions, and other necessary information.

Handling Tax Audit and Inspection Results

• Tax authorities base on the tax audit and inspection report to handle violations (if any), adjust tax payments, collect additional taxes, etc. 
• Taxpayers have the right to appeal the tax audit and inspection results if they believe the results are inaccurate.

3. Notes

• Provide complete and accurate records and documents as requested by the inspection team.
• Cooperate with the inspection team during the inspection process.
• Have the right to comment on the inspection report.
• Have the right to appeal or report if they believe they have been unfairly penalized.

Some useful information sources:

• General Department of Taxation: https://www.gdt.gov.vn/
• Ministry of Finance Electronic Portal: https://www.mof.gov.vn/
• Law on Tax Management: https://thuvienphapluat.vn/van-ban/Thue-Phi-Le-Phi/Luat-sua-doi-cac-Luat-ve-thue-2014-259208.aspx

In addition, you can also consult with lawyers or tax consultants for the best support in case of tax audits and inspections.

If you encounter difficulties in tax audits and inspections, please contact us today for free tax consultation:

• TPM TAX AGENCY & CONSULTING CORPORATION
• (+84) 28 3505 1800
• info@tpm.com.vn
• https://tpm.com.vn