Tax alert - Official Letter 2392/TCT-QLRR on evaluation of the Electronic Invoice management systems’ new feature
On 14 June 2023, General Department of Taxation (“the GDT”) issued Official Letter 2392/TCT-QLRR on evaluation of the Electronic Invoice management systems’ new feature of alerting the seller with high risk of issuing fictitious invoice. This system is under testing period before official implemented.
Accordingly, based on the available database, the system will calculate the ratio of sales revenue on the value of inventory and purchased goods based on data of input and output invoice (the ratio, hereinafter called by "Parameter K"). Any seller whose Parameter K exceeds the pre-determined threshold shall be noticed for further review and identifying cases subject to suspension of invoice usage. The Parameter K is calculated according to the following formula:
K = (Total revenue of goods sold) / (Total value of inventory + Total value of purchased goods)
Local Tax Departments will perform the calculation the Parameter K based on the available data on the system until 14 June 2023. On the aforementioned basis and the actual situation, the Tax Departments will assess and propose a suitable Parameter K and send the result to the GDT before 30 June 2023.
Considering the upcoming implementation of this new feature, as well as the recent discovery by the Police Department Phu Tho Province regarding a group of individuals engaging in the acquisition of businesses to issue fictitious invoices as mentioned in Official Letter 1798/TCT-TTKT (on 16 May 2023 by the GDT), enterprises should consider preparing in advance for further explanation in relation to the Parameter K or the input invoices related to 524 businesses mentioned in OL 1798.
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