Details It's Important To Have Knowledge Of Administrative Penalties For Tax Or Invoice-Related Violations In Vietnam

Decree No. 125/2020/ND-CP dated October 19th, 2020 of the Government on regulating administrative penalties for tax or invoice-related violations

This Decree sets out regulations on administrative penalties for tax or invoice-related violations, with the exception of administrative violations in connection with fees and charges; administrative violations related to taxes on exported or imported goods that collection is managed by customs authorities and violations against regulations on tax registration procedures, notification of temporary business suspension or premature business continuation conducted with business registration.

When compared with the current regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations aren't changed. Specifically, inside the tax field, they may be VND 200 million (for organizations) and VND 100 million (for those); from the invoice field, these are VND 100 million (for organizations) and VND 50 million (for people).

However, this Decree adds result-oriented acts considered to be “using illegal invoices” including: using e-invoices which aren't registered with any tax authority; use of e-invoices which tax authority’s codes have yet to be granted according to regulations; usage of invoices together with the invoicing date following the date which a tax authority determines the seller isn't working with the address registered having a competent regulatory authority, etc.

These acts are viewed to become “illegally using invoices”: using invoices that won't contain all compulsory contents as prescribed; use of invoices with discrepancies in amounts paid for services or goods rendered, or discrepancies in required data fields between an invoice’s copies.

Any administrative violation together with the underpaid amount of taxes, the evaded amount of taxes, the higher-than-prescribed volume of tax exemption, reduction or refund that's at the very least VND 100 million, or perhaps the value of goods or services rendered which can be at the very least VND 500 million, should be determined as a large-scale tax-related administrative violation.

Pertaining to invoice-related violation, any administrative violation involving a minimum of 10 invoice numbers will probably be determined as being a large-scale invoice-related administrative violation.

This Decree shall work from December 5th, 2020.

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