Received invoices from a supplier that has disappeared? 5 steps to handle it safely

The tax office asks you to explain a batch of input invoices because the supplier has been found not operating at its registered address - in other words, it has disappeared. The goods were received and paid for by bank transfer. Can you keep the input VAT credited and the expenses recorded, and could your company be treated as evading tax? Since 1 July 2026, the answer rests on the Law on Tax Administration No. 108/2025/QH15 and Decree 254/2026/ND-CP on e-invoices and e-documents (which replaced Decree 123/2020/ND-CP).

Where the real risk lies

When a seller's status changes, the tax authority usually reviews the invoices it issued and asks the buyers to explain them. If an invoice is found to be unlawful, the buyer can face three consequences at once:

• Loss of input VAT credit, because deduction requires a lawful invoice under the Law on VAT No. 48/2024/QH15 and Decree 181/2025/ND-CP (as amended by Decree 144/2026/ND-CP).
• Disallowance of the expense for corporate income tax (CIT), because a deductible expense must be supported by proper invoices and documents under Article 9.1(b) of Decree 320/2025/ND-CP.
• Late payment interest of 0.03% per day on the additional tax payable (Article 16.2(a) of Law 108/2025/QH15), plus penalties where applicable.

The severity, however, depends heavily on whether the transaction actually took place. Law 108/2025/QH15 clearly separates two situations:

In other words, everything you do should focus on one goal: proving that the transaction was real and that you acted as a careful buyer in good faith.

5 steps to handle it safely

Step 1: Map the exposure

Look up the supplier's tax code status on the tax authority's portal. Under Appendix 1 of Circular 90/2026/TT-BTC, status 06 means a taxpayer not operating at its registered address. Note when the status changed, then list every invoice from this supplier by period, together with the input VAT credited and the related expenses and cost of goods sold. Pay particular attention to invoices dated close to or after the date the supplier was found not to be operating.

Step 2: Build a file that proves the transaction was real

Article 3.7 of Decree 254/2026/ND-CP treats the use of fictitious invoices - invoices that describe a transaction where the purchase did not take place, in part or in whole - as unlawful use of invoices. Your file therefore needs to show that the flow of goods, the flow of money and the flow of documents all match:

• Contracts, purchase orders, quotations and email exchanges with the supplier.
• Delivery records, warehouse receipts, transport documents and service acceptance minutes.
• Non-cash payment records into a bank account in the supplier's own name.
• Evidence of use: inventory on hand, issue notes to production, and the related sales invoices.

Step 3: Respond on time and consistently

Under Article 22.2(b) of Law 108/2025/QH15, the tax authority may ask for explanations and additional documents; if they are not satisfactory, it may assess tax, impose penalties or escalate to an audit at your premises. Present your written explanation in chronological order, number every attachment and make sure the figures match your accounting records.

Step 4: File a supplementary return if the evidence is not enough

If the file is not convincing, self-correction is usually the least expensive option. Article 12.5 of Law 108/2025/QH15 allows a supplementary return within 5 years from the filing deadline of the period in error, provided it is filed before an inspection or audit decision is announced. The company reverses the input VAT, adds back the related expense, and pays the tax and late payment interest. Where the transaction was real and the fault was not the buyer's, correcting before an audit means no fine (Article 44.2(a)).

Step 5: Deal with the supplier and review your supply chain

Record the loss and any right to claim compensation under the contract. At the same time, review suppliers showing similar warning signs: newly established, unclear head office, unusually low prices, requests for payment into a personal account. A risky invoice rarely comes alone.

Prevention: a minimum supplier screen

The cheapest option is never to accept such invoices in the first place. A supplier check should include:

• Checking the tax code status when signing the contract and before every large payment, and keeping a screenshot of the result.
• Checking the head office address: Article 7 of Circular 91/2026/TT-BTC treats a head office without a specific address, or located in an apartment, as a high-risk criterion when registering to use e-invoices.
• Paying only by bank transfer into an account in the supplier's own name, and never in cash for transactions of VND 5 million or more.
• Including contract clauses that warrant lawful invoices and require compensation if the tax authority finds an invoice unlawful.
• Monitoring the information on taxpayers not operating at their registered address that the tax authority publishes under Article 4 of Decree 252/2026/ND-CP.

How Kaizen can help

The Kaizen team, with more than 17 years of Big4 experience, helps companies isolate risky invoices, assemble evidence that transactions were real and prepare written explanations for the tax authority. If you are not sure how safe your supplier list is, start with our free tax health check: we review a sample of your input invoices and point out what needs fixing before the tax office asks.