OFFICIAL LETTER 6297/CT-QLTT OF THE DEPARTMENT OF TAXATION ADDRESSING ISSUES ON THE K COEFFICIENT IN THE USE OF E-INVOICES
On 25 August 2026, the Department of Taxation issued Official Letter 6297/CT-QLTT addressing a number of issues, including clarification on the use of the K coefficient in the e-invoice risk alert system.
According to the Department of Taxation:
- The K coefficient currently applies only to taxpayers whose principal business lines fall within the Trading or Manufacturing group, and does not yet apply to enterprises purely providing services, consulting, software, training and similar services.
- The system will automatically send alert emails to taxpayers identified as risky under the K coefficient criteria. Receipt of an alert does not mean that the enterprise has committed a violation; rather, it serves as a basis for the tax authorities to conduct further review and risk assessment.
- Regarding proposals to categorise and adjust the alert criteria by industry, business model and cost structure, the Department of Taxation stated that it will continue to study and make appropriate adjustments.
👉 Enterprises receiving alerts from the system should distinguish between a risk alert and a conclusion of violation, and proactively review their invoice data and relevant documentation so as to be ready to provide explanations upon request.
