Encourage the people to use VAT invoice

	The principle of converting electronic invoices to paper invoices
	E-invoice will be soon compulsorily applied
	Hanoi Taxation Department destroyed a ring of illegal trade of VAT invoices

Currently, the people have not realized benefits of using of VAT invoice. Photo: T.L

According to the suggestion of voters in Tien Giang province, the people have not realized the benefits of using VAT invoices, and they only see one of the most important disadvantages, which is to pay extra value added tax for products that they buy or services they use.

Therefore, the voters proposed to the Ministry of Finance to consider and implement further effective solutions to propagate, encourage and persuade to enforce the people, enterprises and business establishments that they must use VAT invoices.

Facing this proposal, the Ministry of Finance said that although regulations on purchasing goods and using services that must have invoice and documentation are stipulated in the Law on Value Added Tax, in fact the seller has not taken the initiative in using VAT invoices and the buyer has not taken care of asking for an invoice. This might lead to tax fraud by business establishments.

In order to help the people to understand the benefits of using VAT invoices, the Ministry of Finance and the General Department of Taxation have actively collaborated with press agencies from the central to the local level to propagate on the mass media (newspapers, radio, television, leaflets and etc) for the people to understand and comply well to the policies on using VAT invoices; Enhanced awareness of responsibilities and obligations of taxpayers, responsibility for supervision of tax obligations of organizations and individuals engaged in business or service suppliers, including the obligation on use, management and supervision of using invoices by organizations and individuals.

In addition, over the past time, the Tax sector has actively collaborated in propagandizing on the deployment of e-invoice and e-invoices with verification codes verified e-invoice for the people to understand the great benefits of e-invoice when enterprises and the people use them. And the buyer will limit risks when purchasing goods and using services. The e-invoice system will warn enterprises with high risks of tax about not being allowed to issue invoices in goods trading and service supply.

Besides, the Ministry of Finance continues to request the Tax sector to closely collaborate with banks, credit institutions to strengthen the dissemination and promotion of non-cash payment, thereby controlling the issue of VAT to business establishments.

The Tax sector has also comprehensively promoted inspections and examinations. Among the objects subject to inspection and examination, apart from focusing on key enterprises, it also concentrated on inspecting and checking the use of invoices and documents of enterprises.

In order to restrict tax evasion by establishment of “ bogus” enterprises to illegally purchase invoices, the Tax authority has strengthened the inspections after licensing and reviewed tax dossiers for newly established enterprises, especially enterprises with legal representatives who live in other localities.

The General Department of Taxation has continuously coordinated with the Police authority and relevant authorities to grasp and handle promptly cases violating Tax policies; Collaborated in inspecting and verifying and providing dossier and informing quickly and promptly, enhanced the deterrent for tax payers evading Tax and Tax fraud. Thereby, preventing in a timely fashion violations by tax payers, including the use of VAT.

Particularly, the Tax sector has been enhancing IT application for the prevention of tax fraud; Including the application of electronic invoices, invoices with verification codes. The enhancement of IT application and modernization of the Tax sector will contribute positively and effectively to the prevention of tax fraud, including the use of VAT invoices.

More than 300 million of e-invoices registered VCN - On 24 October 2017, the Government Portal hold an online dialogue titled "Taking e-invoices into ...

At present, the Ministry of Finance is drafting a Law on Tax Administration to replace the current Law on Tax Administration, focusing on finalizing the law on invoices for the sale of goods, service supply and applying e-invoices to ensure accurate tax collection and avoid fraud. To effectively implement Resolution No.35/NQ-CP dated 16/5/2016 in the spirit of the Government accompanying enterprises, the Ministry of Finance is drafting the Decree on electronic invoices and vouchers (electronic invoices and electronic invoice with verification code), which is expected to be applied in 2018 in accordance with the Directive of the Prime Minister.

Ministry of Finance expects that with the efforts and efforts as above, the management of VAT invoices will have positive changes in the coming time.