Legal News

[Taxation] DG Tax releases additional list of 113 suppliers at risk of illegal invoices

2024/08/15

The People’s Court of Phut Province disclosed to the General Department of Taxation, as a result of the first instance trial on illegal invoice trafficking, that from December 2020 to October 2022, 637 suppliers of illegal invoices illegally sold 1,025,712 invoices to 88,053 companies. In response, the GDT issued Official Letter 3385/TCT-TTKT dated August 1, 2024, publishing a list of 637 suppliers of illegal invoices in total, adding 113 companies to the 524 companies announced on May 16, 2023. The DGT has instructed local tax bureaus to

・The tax bureaus to investigate the information of the 113 companies through the use of electronic invoice data and the collection of paper-based invoices. If taxpayers are using invoices from these companies to file taxes, the Tax Administration will verify and process the taxes and invoices in accordance with regulations.

・The Tax Administration will compile the results of tax and invoice processing for taxpayers using invoices from 637 companies by December 31, 2024, and report them to the General Directorate of Taxation.

Companies using invoices from any of the 637 companies are likely to be asked by the tax authorities to explain their situation with respect to CIT deductions and VAT deductions and refunds. If an illegal act is confirmed, an administrative fine may be imposed.

＋ Check the accounting books and purchase invoices of the companies and confirm the use of invoices by 637 companies. If applicable, prepare sales contracts, purchase orders/invoices, payment vouchers, etc. Since tax audits tend to exclude invoices from deductibility of corporate income tax and deduction/refund of value-added tax, it is recommended to exclude such invoices from these calculations in advance as a conservative measure.

+ When considering contracting with a new supplier, ask the supplier to provide corporate information and confirm that the supplier is not on the following list of suppliers of illegal invoices.

※List of 113 additional companies
https://www.i-glocal.com/wp-content/uploads/2024/08/CV3385.pdf

※List of 524 existing companies
https://www.i-glocal.com/wp-content/uploads/2023/06/cv1798_tct_ttkt.pdf

 

References:.
Official Letter 3385/TCT-TTKT dated August 1, 2024