Details You Have To Have Knowledge Of Administrative Penalties For Tax Or Invoice-Related Violations In Vietnam
Decree No. 125/2020/ND-CP dated October 19th, 2020 in 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, except for administrative violations in connection with fees and charges; 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 with the existing regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations are certainly not changed. Especially, in the tax field, they are VND 200 million (for organizations) and VND 100 million (for people); within the invoice field, these are VND 100 million (for organizations) and VND 50 million (for those).
However, this Decree adds new acts regarded as being “using illegal invoices” for example: using e-invoices who are not registered with any tax authority; usage of e-invoices ones tax authority’s codes have yet to be granted as outlined by regulations; use of invoices with all the invoicing date following the date on what a tax authority determines the seller is just not working at the address registered with a competent regulatory authority, etc.
These acts are considered being “illegally using invoices”: utilization of invoices that do not contain all compulsory contents as prescribed; use of invoices with discrepancies in amounts taken care of services or goods rendered, or discrepancies in required data fields between an invoice’s copies.
Any administrative violation using the underpaid amount of taxes, the evaded tax amount, the higher-than-prescribed level of tax exemption, reduction or refund which can be a minimum of VND 100 million, or even the valuation on goods or services rendered which can be no less than VND 500 million, will probably be determined as a large-scale tax-related administrative violation.
Pertaining to invoice-related violation, any administrative violation involving at least 10 invoice numbers will be determined being a large-scale invoice-related administrative violation.
This Decree shall work from December 5th, 2020.
For additional information about sanctioning administrative violations on invoices net page: click.