Technological renewal to reduce tax payment time

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The implementation of e-invoices at enterprises must be completed no later than October 31st, 2020. Photo: T.L.

Awareness of the business affects the tax payment time

According to the World Bank's Doing Business Report 2019, the current tax compliance time of Vietnam is 351 hours per year. However, of the 351 hours, 334 hours is the time for the enterprise to calculate data and prepare the declaration.

According to Cao Anh Tuan, Deputy Director of the General Department of Taxation, nowadays, most large enterprises have a sense of observance of tax policies and laws. However, there are still a number of enterprises making false declarations and insufficient declaration of tax payable, due to limitation in understanding and updating tax regulations. Accordingly they are fined and warned. At the same time, some enterprises still fail to comply with tax payment time, leading to increase in tax debts compared to the previous year.

Mr. Tuan added that the actual time for tax declaration and payment is only 17 hours per year. To achieve this result, the Tax sector has actively implemented e-tax declaration and tax payment services for all enterprises.

Up to date, the online tax declaration system has been implemented in 63 of 63 provinces and cities and 100% of attached tax branches. The number of enterprises registering to participate in using the service with the tax authorities is over 98% of the number of operating enterprises. The General Department of Taxation also extends the e-tax refund service in 63 provinces and cities to support enterprises to pilot e-invoices with tax codes in Hanoi and Ho Chi Minh City. Currently, the General Department of Taxation has deployed e-Tax service to taxpayers at 30 tax departments, which is expected to be completed and applied for taxpayers nationwide by the end of the first quarter of 2019.

The Leader of the General Department of Taxation said that to improve the index of tax payment time in the coming time, the Ministry of Finance and the General Department of Taxation will continue to make further efforts in reform, facilitation to enterprises; At the same time, strengthening to electronize administrative procedures for enterprises. The Tax sector expects enterprises to develop sustainably and seriously abide by the State’s tax laws.

"In addition to solutions from the Ministry of Finance, the General Department of Taxation is also in need of innovation from enterprises, enterprises also need to apply information technology to the accounting work, to unify the accounting booking with the tax obligation, so that they can reduce the time to comply with tax obligations, contributing to reducing the tax payment time," Cao Anh Tuan emphasized.

Using e- invoice as soon as possible

Notably, the representative of the General Department of Taxation also said, in addition to tax administrative reform to create favourable conditions for taxpayers, in the past year, the tax sector has advised the Government and the Ministry of Finance to develop and amend tax policies in order to overcome the inadequacies and ensure the suitability with reality.

The General Department of Taxation has submitted a proposal to the Ministry of Finance to submit to the Government Decree No. 119/2018 / ND-CP dated September 12th, 2018 on e-invoices (Decree 119). According to Decree 119, the implementation of e-invoices at enterprises must be completed no later than October 31st, 2020. Thus, from now until the end of October 2020 is the time for taxpayers and tax authorities to prepare the infrastructure conditions and other conditions. It is also a period for the people in general and taxpayers in particular to change the habit of using paper invoices and to familiarize themselves with e-invoices.

"However, during this period, if any enterprises have prepared and are eligible, they can issue e-invoices immediately," said the leader of the General Department of Taxation.

For those who use e- invoices with tax code, Decree 119 stipulates that the enterprises engaging in the fields of electricity, petroleum, post and telecommunication, transport, finance, credit, e-commerce, supermarket businesses and etc., and enterprises that have or will deal with tax authorities by electronic means and have eligible accounting software system, are allowed to use e-invoice without tax code.

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In the coming time, the General Department of Taxation will continue to submit to the Ministry of Finance to issue a Circular guiding Decree 119 to improve the legal framework to facilitate the launching of electronic invoices.