Vietnam Tax Authority Flags Nationwide Fake Invoice Rings

The Vietnamese tax authority has warned that firms are being created solely to issue counterfeit invoices and trade them across provinces in an organized, multi‑tiered network. These schemes exploit the value‑added tax (VAT) refund system, allowing participants to siphon state funds. Four categories of violators were identified:

1. Shell companies with fewer than ten staff that rotate addresses and generate large invoiced amounts while paying minimal tax, acting as the primary source of fake invoices. 2. Legitimate businesses that deliberately purchase illegal invoices to inflate deductible VAT costs or claim refunds. 3. Individuals or unregistered enterprises that buy invoices to legitimize transactions, often in transport or construction material sectors. 4. Retail outlets that issue fake invoices by capitalising on consumers who do not request receipts, then selling those invoices to other buyers.

Typical tactics include rapid bank transfers that leave minimal account balances, the use of hired or fictitious legal representatives, and layered structures of input, intermediary, and output companies. In 2025, the tax agency received 6,972 requests from police for documentation to aid the crackdown on this economic crime.