Increasing the collection of taxes helps government balances with spending. As reported by public news in Vietnam, the Vietnam Ministry of Finance has revealed that state budget is facing shortfall as the tax collections lags behind the target. A number of measures have been taken to improve the situation. From the Vietnam tax agency, a proposal has been submitted with aim to help tighten conditions for enterprise to print, issue, and use of sale invoice in business transactions to avoid fraud and fake invoices. ANT Lawyers’ tax lawyers in Vietnam always monitor the changes of tax regulations in Vietnam and keep our client up to date. Under the Decree 51/2010/ND-CP and Circular 153/2011/TT-BTC currently effective, all enterprises and households are allowed to print, issue or use their own sale invoices in business transaction. So far, this flexibility policy has helped speeding up business start-up through cutting off the administrative process of ordering invoices from tax agency. The drawing back is that many fraud and fake invoices have been found printed and issued, and the consequence is that tax control is challenging for tax agency. At an effort to curb the with the situation, the General Department of Taxation has proposed a draft Decree amending Decree 51/2010/ND-CP in which new regulations shall tighten condition for enterprise to print invoices independently. As proposed, only enterprises with charter capital of more than VND 15 billion are eligible to print, issue and use invoices. Other enterprises with charter capital of under VND 15 billion or business in trading, service without fixed place must use invoices issued by local Department of Taxation within the first year. After this period, the Department of Taxation shall review and decide whether these enterprises are permitted to print, issue or use invoices. At ANT Lawyers, we advise clients on legal matters and make sure they comply with the regulations in Vietnam. ANT Lawyers, your lawyers in Vietnam.
