Have businesses ever wondered about the signs that tax authorities will pay attention to in the declaration and settlement of their taxes? Below are some warning signs that may attract tax scrutiny, and businesses should be aware of and avoid, preventing them from becoming subjects of interest:

1. Consistently reporting losses for several consecutive years.

2. Cost of goods sold higher than the selling price (account 511 lower than account 632).

3. Accumulating a large cash reserve while having a high level of bank debt.

4. Frequently filing tax returns late, inaccurately, and submitting supplementary declarations beyond the deadline.

5. Fluctuations in revenue and abnormal income regularly.

6. Account 112 with equal or nearly equal amounts of money paid in and withdrawn.

7. Businesses frequently reporting higher input VAT than output VAT (in the case of project investment tax refund or some companies investing in projects but not using them for tax deductions).

8. The recorded inventory volume is very high.

9. Always having an excess of input VAT (according to criterion 43 on the tax return).

10. Standard consumption of raw materials higher than actual usage.

11. Gifts and presents NOT invoiced.

12. For retail industries like pharmaceuticals, cosmetics, petroleum, and restaurants… not issuing full retail invoices.

13. Promotions not registered with the Department of Trade.

14. Legitimizing invoices properly and in compliance with regulations.

If any abnormal signs are detected in the business, quickly contact Viet Uc Auditing for timely advisory support. If you have any questions, please contact us via the Hotline: 0848 770 777 for free consultation!

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.