On May 16th, the Management Board of The Sun Avenue apartment complex (Thu Duc City, Ho Chi Minh City) stated that they had sent a document to the Tax Branch of Region II, requesting an inspection of financial, accounting, and tax compliance practices at The Sun Avenue. At the end of 2024, the Management Board had sent two similar documents to the Region II Tax Branch (formerly Ho Chi Minh City Tax Department), but have not yet received an official response from the tax authorities.
According to the Management Board of The Sun Avenue, during the management and operation of the apartment complex, Savills Vietnam has been collecting management fees and water charges from residents through receipts without issuing value-added tax invoices from May 1, 2024, until now. Therefore, the Management Board requests the tax authorities to conduct a comprehensive inspection of tax compliance in all management and operational activities at The Sun Avenue to ensure transparency and protect the rights and interests of the residents.
As per the Management Board’s statement, Savills Vietnam signed a management contract with the investor, followed by a similar agreement with the Management Board, adopting a ‘collect and pay’ model. Before May 2024, Savills Vietnam collected management fees and issued value-added tax invoices to residents. However, from May 2024 onwards, Savills Vietnam organized a meeting with the Management Board to implement Circular No. 3487/CT-TPHCM-THT issued by the Ho Chi Minh City Tax Department on April 9, 2024. They advised the Management Board to stop issuing invoices and instead, issue receipts without including tax.
On August 29, 2024, Savills Vietnam presented a proposal to the Management Board, suggesting several options to retroactively collect VAT from residents for the period from May to August 2024. However, they did not declare this tax and held a meeting with the Management Board on September 18, 2024, deciding to only issue receipts without invoices, including the tax component. Savills affirmed that this approach would be implemented across all projects they manage.
The Sun Avenue apartment complex in Thu Duc City, Ho Chi Minh City.
“According to the Management Board’s understanding, the receipt serves as a record of fee payment between residents and Savills Vietnam—a civil relationship between two entities. Meanwhile, an invoice acknowledges the value-added tax component of the management fee. Savills Vietnam has been collecting the management fee through receipts while also collecting value-added tax, effectively overstepping their authority in tax management, which is the prerogative of the state authorities,” the Management Board’s document stated.
Currently, the Chuân Việt Audit Company has conducted an audit and prepared an audit report for the management and operation phase from the project’s handover to December 31, 2022, involving the investor and Savills Vietnam. Despite the Management Board’s repeated requests, the investor has evaded responsibility, leaving Savills Vietnam to sign and take responsibility for confirming invoices and financial, accounting documents in the building.
The Management Board of The Sun Avenue questioned whether the lack of legal invoices and potential tax evasion in the management and operation of the building were unique to their apartment complex. Therefore, they urged the tax authorities to conduct a comprehensive inspection of financial, accounting, and tax practices to ensure transparency and protect the rights and interests of the residents of The Sun Avenue.
Previously, the Binh Chanh District Tax Office (now the Binh Chanh District Tax Team, Region II Tax Branch) issued an administrative sanction for invoice-related violations to the Management Board of Conic Dong Nam A apartment complex (Lot 13B, Conic Residential Area, Nguyen Van Linh Street, Phong Phu Ward, Binh Chanh District, Ho Chi Minh City) with a fine of over VND 119 billion.
Specifically, the Management Board of Conic Dong Nam A apartment complex, term 2024-2027, committed an administrative violation by failing to issue invoices for goods and services provided to customers as stipulated in Decree No. 125/2020/ND-CP of the Government on sanctioning tax and invoice violations. There was an aggravating circumstance of repeated violations.
For this violation, the Management Board of Conic Dong Nam A was fined over VND 119,788,500,000. The fine for the violation of not issuing invoices for goods and services sold (sub-clause 4254) amounted to over VND 119 billion.
The Management Board of Conic Dong Nam A has the right to complain or initiate legal proceedings against this decision in accordance with the law.
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