Facts You Should Understand About Administrative Penalties For Tax Or Invoice-Related Violations In Vietnam
Decree No. 125/2020/ND-CP dated October 19th, 2020 with 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, apart from administrative violations related to charges and fees; administrative violations related to taxes on exported or imported goods of which 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 to the existing regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations aren't changed. In particular, in the tax field, these are VND 200 million (for organizations) and VND 100 million (for people); in the invoice field, these are VND 100 million (for organizations) and VND 50 million (for folks).
However, this Decree adds result-oriented acts regarded as being “using illegal invoices” for example: use of e-invoices which aren't registered with any tax authority; utilization of e-invoices ones tax authority’s codes have yet to be granted according to regulations; using invoices together with the invoicing date as soon as the date on which a tax authority determines that the seller just isn't doing business at the address registered which has a competent regulatory authority, etc.
These acts are believed to get “illegally using invoices”: using invoices that will not contain all compulsory contents as prescribed; utilization of invoices with discrepancies in amounts covered services or goods rendered, or discrepancies in required data fields between an invoice’s copies.
Any administrative violation with all the underpaid tax amount, the evaded amount of taxes, the higher-than-prescribed volume of tax exemption, reduction or refund that is at least VND 100 million, or value of goods or services rendered which is no less than VND 500 million, will be determined like a large-scale tax-related administrative violation.
Pertaining to invoice-related violation, any administrative violation involving at the very least 10 invoice numbers shall be determined like a large-scale invoice-related administrative violation.
This Decree shall be effective from December 5th, 2020.
For more details about sanctioning administrative violations on invoices view this useful web portal.