NTB Launches Business Tax Audit: Six Key Industries Under Scrutiny

To uphold tax fairness, the Ministry of Finance's National Taxation Bureau (NTB) officially launched its annual business tax audit on April 1. This year, six key industries are the focus of the audit: businesses in prime locations, popular stores with long queues, night market vendors, businesses featured in the media, hair salons, and real estate leasing services.

NTB says that these industries, which often involve frequent cash transactions or fluctuating revenues, are more prone to tax irregularities. The audit will examine compliance with tax registration, invoice issuance, business tax reporting, and obtaining input tax certificates.

- Key Violations Targeted in This Year’s Audit -

1. Failure to Register for Tax Purposes - Operating a business without proper registration may be considered a violation.
2. Failure to Issue Invoices for Sales of Goods or Services - Whether paper or electronic, invoices must be issued and reported as required by law.
3. Issuing Fraudulent Invoices to Evade Taxes - This includes issuing invoices on behalf of others or fabricating transactions, which is illegal.
4. Failure to Obtain Proper Input Tax Certificates or Duplicate Tax Deduction Claims - Not obtaining formal receipts for purchases may impact business tax calculations.
5. Failure to Report Business Tax on Foreign Transactions - For example, booking hotels or purchasing airline tickets through foreign e-commerce platforms may require additional tax payments.
6. Incorrect Tax Rate Reporting - Incorrectly classifying taxable items as tax-exempt or zero-rated could lead to tax adjustments.

- Prevention and Response Strategies -

We advise businesses to conduct self-assessments and proactively report any tax discrepancies before March 31 to avoid penalties. According to the Tax Collection Act, taxpayers who voluntarily report and pay outstanding taxes along with interest may be exempt from fines. Additionally, with the government’s push for digital transformation, tax authorities are enhancing electronic invoice regulations and leveraging data analytics for audits. Businesses should consider implementing financial management systems to ensure transparent accounting and minimize audit risks.

- Conclusion -

This audit aims to create a fair business environment by ensuring all enterprises comply with tax laws and preventing tax evasion. As tax regulations tighten, businesses must prioritize financial transparency to maintain long-term stability. We provide professional tax consulting and risk assessment services to help businesses review their financial records, optimize invoice management processes, and stay updated on the latest business tax regulations. Our team can assist clients in identifying potential risk areas, developing compliance strategies, and ensuring smooth business operations.