Preventing tax loss with data and digital technology

Efforts to combat revenue loss have directly contributed to correct and sufficient collection for the national budget

In recent years, the Vietnamese Tax sector has achieved impressive results in budget collection, despite the context of many economic fluctuations. Total state budget revenue increased from VND 1,563.3 trillion in 2021 to VND 1,820,3 trillion in 2022, slightly decreased to VND 1,752.5 trillion in 2023 and continued to break out to VND 2,025.4 trillion in 2024.

In the first quarter of 2025, the total budget revenue managed by the Tax sector reached VND 668,313 billion, completing 38.9% of the annual estimate and increasing by 36.3% over the same period in 2024. These figures show that the Tax sector has continuously "keeps the index" and innovated collection work to ensure correct and sufficient collection, while contributing significantly to the general resources of the economy.

The Tax sector identifies modernization as a key solution to combat revenue loss in the new context. Since April 21, 2022, the electronic invoice system (EV) has been deployed nationwide, marking a major step forward in transaction transparency and tax management.

On December 31, 2024, the number of businesses registered to use the Internet of Things started from pre-existing computers is estimated at 92,080 businesses, 2.3 times the number at the end of 2023. Accordingly, the number of electronic money transactions has exceeded 1.3 billion invoices, 13 times higher than in 2023 (105 million invoices). Revenue recorded through the use of invoices generated from cash registers reached VND686,000 billion, 7.4 times higher than in 2023 (VND93,000 billion).

The popularization of the General Database helps tax authorities easily monitor revenue, compare data and detect violations. The High-Tech Board of Directors Data Center has automatically compared invoices with tax declarations, warning of risks such as issuing invoices exceeding the threshold.

From 2024, the Tax sector will start applying artificial intelligence (AI) to analyze big data, detect unusual prices, fake invoices, and buy and sell. Thanks to that, through risk analysis alone, the industry has earned an additional VND 4,750 billion in VAT.

E-commerce is a new focus to prevent revenue loss. The Tax sector requires e-commerce platforms to provide seller data, coordinate with banks to verify cash flow, and at the same time build an electronic information portal for foreign suppliers to declare and pay taxes in Vietnam. As of April 6, 2025, 135 foreign suppliers have registered, with a total tax payment of nearly VND 23,000 billion.

The industry also expands management to the fields of virtual currency, digital services... by building appropriate collection policies and updating taxpayer databases in the online environment.

filling the uncious gap

Tax inspection and examination work is also considered a spearhead in preventing budget losses. The entire Tax sector has implemented thematic inspection campaigns targeting high-risk areas: Real estate transfer, transfer pricing (connection), e-commerce, VAT refunds...

In 2024, the Tax sector conducted 62,932 inspections and checks at taxpayer headquarters, reaching 97.5% of the 2024 plan; thereby, it recommended handling a total of VND 62,726 billion, of which VND 16,463 billion was increased in revenue (revenue and fine), excluding VAT with an incorrect deduction of VND 2,675 billion and preventing a loss of VND 43,587 billion. These figures reflect the determination of the tax authority to "not let revenue leak".

Notable tax evasion and fraud cases were all strictly handled. Many large invoice trading rings in Hanoi, Ho Chi Minh City, Hai Phong... have been dismantled and prosecuted; a series of cases of low real estate transfer prices to evade taxes have been charged billions of dong. In parallel with strong measures, the Tax sector still ensures the motto "anti-income loss but not making it difficult for genuine taxpayers".

The inspectorate always complies with the Prime Minister's instructions on avoiding overlap and causing trouble for businesses. Thanks to that, the business environment is both more transparent and fair, and does not hinder the legitimate operations of enterprises.

Anti-income loss is not just the task of the tax authority. In recent years, the Tax sector has proactively coordinated closely with ministries, branches and local governments to create synergy. The Ministry of Finance has established a Central-level State budget revenue and loss Steering Committee headed by a Deputy Minister, mobilizing the participation of the Tax Department, Customs Department and functional units. In localities, many Steering Committees against revenue loss headed by leaders of Provincial/City People's Committees have also been established.

Tax authorities work with the Department of Industry and Trade and the Department of Information and Communications of provinces to effectively manage e-commerce and online business activities, and at the same time coordinate with the economic police and market management to handle cases of smuggling, counterfeit goods production and business, and apply professional measures to track down tax evasion. Sharing information between sectors (for example, business registration data from the Department of Planning and Investment, real estate transaction data from the Department of Natural Resources and Environment, etc.) helps tax authorities expand their tax base, not missing newly generated revenue sources.

The Tax sector also promotes administrative procedure reform, providing convenient electronic tax services to people and businesses. Applications such as eTax Mobile allow individuals to pay taxes by phone; the invoice system from the money computer being piloted to help manage business household revenue in real time... All create a modern, transparent tax management ecosystem, supporting taxpayers to comply with their obligations more easily, thereby indirectly improving budget collection efficiency.

From relying on human resources, the Tax sector is shifting to relying on digital data and technology to "scope" risks more effectively. The industry also proactively prevented loss of revenue from the beginning by closing policy loopholes and applying early fraud prevention technology. This is the foundation for the Tax sector to continue to fulfill its budget collection mission in the new period.

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