Points It Is Advisable To 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, aside from administrative violations related to charges and fees; administrative violations in connection with 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 actual regulations, the most fine levels imposed on administrative penalties for tax or invoice-related violations usually are not changed. Specifically, in the tax field, they're VND 200 million (for organizations) and VND 100 million (for individuals); from the invoice field, they are VND 100 million (for organizations) and VND 50 million (for folks).

However, this Decree adds new acts thought to be “using illegal invoices” such as: usage of e-invoices which aren't registered with any tax authority; using e-invoices that tax authority’s codes haven't been granted based on regulations; using invoices with the invoicing date following your date on which a tax authority determines that the seller is just not doing work in the address registered which has a competent regulatory authority, etc.

These acts are thought being “illegally using invoices”: utilization of invoices that won't 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 using the underpaid tax amount, the evaded amount of taxes, the higher-than-prescribed quantity of tax exemption, reduction or refund which is no less than VND 100 million, or perhaps the value of services or goods rendered that's at the very least VND 500 million, shall be determined being a large-scale tax-related administrative violation.

Intended for invoice-related violation, any administrative violation involving a minimum of 10 invoice numbers shall be determined as being a large-scale invoice-related administrative violation.

This Decree shall be effective from December 5th, 2020.


For details about sanctioning administrative violations on invoices visit our resource