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, except for administrative violations related to 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.

In comparison with the current regulations, the maximum fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. In particular, in the tax field, they are VND 200 million (for organizations) and VND 100 million (for individuals); in the invoice field, they are VND 100 million (for organizations) and VND 50 million (for individuals).

However, this Decree adds some new acts considered to be “using illegal invoices” such as: use of e-invoices which are not registered with any tax authority; use of e-invoices of which tax authority’s codes have not yet been granted according to regulations; use of invoices with the invoicing date after the date on which a tax authority determines that the seller is not doing business at the address registered with a competent regulatory authority, etc.

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

Any administrative violation with the underpaid tax amount, the evaded tax amount, the higher-than-prescribed amount of tax exemption, reduction or refund which is at least VND 100 million, or the value of goods or services rendered which is at least VND 500 million, shall be determined as a large-scale tax-related administrative violation.

With regard to invoice-related violation, any administrative violation involving at least 10 invoice numbers shall be determined as a large-scale invoice-related administrative violation.

This Decree shall take effect from December 5th, 2020.


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