What acts constitute tax evasion under Vietnam's Tax Administration Law No. 108/2025/QH15

Tax evasion is defined under the law to include a range of actions and omissions that lead to underpayment of taxes or an increase in taxes that are exempted, reduced, or refunded. It covers failures to comply with tax registration and declaration requirements, improper accounting and invoicing practices, and the use of illegitimate or inaccurate documents to affect tax liabilities.

Key forms of tax evasion

• Failure to file or late filing of tax registration and declarations: Not filing tax registration; not filing tax declarations; or submitting tax declarations after 90 days from the deadline for filing tax declarations (or from an extended deadline as prescribed by the law), resulting in underpayment of taxes or an increase in taxes that are exempted, reduced, or refunded.
• Improper accounting records: Not recording in accounting books revenue items related to determining the amount of tax payable.
• Invoicing and sales tax declaration violations: Not issuing invoices and not declaring taxes when selling goods or services as required by law, or recording on the sales invoice a value lower than the actual payment value of the goods or services sold to declare taxes.
• Use of illegitimate invoices and documents: Using illegitimate invoices or documents to account for goods or services purchased in activities arising tax obligations in order to reduce payable tax or increase tax-exempt, reduced, or refunded amounts, or to increase deductible tax amounts, rebates, or refunds, or to avoid tax payment.
• Misrepresentation of transaction details: Using documents that do not reflect the true nature of the transaction or the actual transaction value to determine incorrect tax payable, exemptions, reductions, refunds, or non-payment of taxes.
• False declarations for imported or exported goods: Making false declarations about exported or imported goods, and violators who do not voluntarily remedy by paying the full amount of tax payable as prescribed.
• Deliberate non-declaration or mis-declaration: Deliberately not declaring or mis-declaring taxes for exported or imported goods.
• Collusion in import activities: Colluding with the consignor to import goods for the purpose of evading taxes.
• Misuse of tax treatment and exemptions: Using goods not subject to tax, not taxed, or misapplying exemptions for purposes not in accordance with regulations without declaring changes in use to the tax authorities.
• Failure to notify during suspension or cessation of business: Taxpayers who conduct business during a period of suspension or temporary cessation but fail to notify the tax authorities.

Related cases involving procedural violations

Taxpayers who are not penalized for tax evasion but are penalized for tax procedure violations are also specified for certain situations, including:

• Failure to file tax registration
• Failure to file tax declarations
• Filing tax declarations after 90 days from the deadline

In addition, the provision applies where such late filing results in a tax payable and the taxpayer has already paid the full tax and late-payment interest before the tax authority announces an audit or records the violation.