Strengthening tax administration for petroleum operations

According to the General Department of Taxation, over the last period, the management of tax on petrol and oil trading activities across the country has made positive changes, however fraud still exists in petroleum business establishments causing damage to consumers and losses to the State budget. In the context of the application of electronic invoices for petrol and oil trading activities cannot be deployed consistently across the country, the taxation authorities should take measures in line with the actual conditions in order to strengthen supervision on petroleum business operations against tax losses and to limit fraud in petroleum operations.

According to the General Department of Taxation, through the practical application of solutions managinggasoline business operations throughthe general meter of gasoline measuring in some provinces such as Nghe An, Thai Binh, Lam Dong... shows theachieved results are satisfactory, helps increasing revenue, creates a healthy,equal business environment between business units, and protects theconsumers’ interests and isrecognized bythe community.

The General Department of Taxation requires Taxation departments in provinces and cities tobuild a project on taxation administration for petroleum operations through generalmeterson gasoline measuring devices of existing business establishments in provinces to report to the provincial People's committee for approval.

When the project is approved, the taxation departmentswill collaborate with the scientific and technological departments to implement six measures, including: taxationauthorities coordinate with relevant departments to organize dissemination and propagation; Tax authorities in coordination with the scientific and technological departments (provincial Quality Measurement Standards branches) and related departments to form interdisciplinary working groups to carry out stamping meter seals in all Petroleumpumps.

The taxation authorities only record total meter readings at the time of sealing and closing the unit's bill at the time of sealing.

Interdisciplinary working groups making a record of the meter seals situation,the amount of sold petrol, oil at the time of sealing, on the general meter and the final billnumber written at the time of sealing.

Periodically on the firstand the last day of the month / quarter, the taxation authorities in collaboration with the Quality Measuring Standards branches assign staff to the petroleum business establishments to record the index on each pumping meter, determine the amount of sold gasoline and oil in the period through earlyand final indicators.

Thereby reference to taxpayers’declarations, and to the invoice of the input supplier, if there are any differences, the tax authorities will proceed to sanction and charge tax arrears as prescribed.

Taxation Departments notify businesses, business establishments in the locality to preserve seals are affixed on the general meters.

Reportedly, the Ministry of Finance also issuedDocument No. 12733/BTC-TCT proposing Chairman of People's Committees of provinces and cities to direct and coordinate the management of tax on petrol and oil trading activities. The Ministry of Finance proposed provincial leaders to direct departments enhancing control and supervision of the petroleum business establishments through the inspectionmetering index on a regular basis, thereby severely dealing with violations in the field of oil and gas business.