| THE PRIME MINISTER OF GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
| No: 19/2002/CT-TTg | Hanoi, September 13, 2002 |
DIRECTIVE
ON ENHANCING THE MANAGEMENT OF VALUE ADDED TAX
After more than 3 years implementation, the Value Added Tax (VAT) Law has brought into play its positive effects, overcoming the overlapping tax collection through different business stages, a shortcoming of the former Turnover Tax Law, and concurrently encouraging production development investment and export.
However, in the course of implementation, a number of organizations and individuals have availed themselves of the loopholes in the VAT Law and Enterprise Income Tax Law to compile false dossiers on export goods or set up enterprises to deal in invoices to commit frauds, appropriating the State’s tax money. Though the tax agencies and other functional State bodies have taken many preventive measures, the situation has not yet been definitely and effectively redressed.
In order to promote the VAT’s positive effects, intensify the efficient management thereof, reduce losses, prevent and overcome fraudulent acts in VAT deduction and reimbursement in a timely manner, as well as the setting up of enterprises for illegal trading of invoices, the Prime Minister hereby requests the ministers, the heads of the relevant branches and the presidents of the People’s Committees of the provinces and centrally-run cities to promptly perform the following tasks:
