Points You Have To Be Informed On 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, except for administrative violations related to fees and charges; administrative violations related to taxes on exported or imported goods ones 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 present regulations, the most fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. Specifically, from the tax field, they may be VND 200 million (for organizations) and VND 100 million (for those); in the invoice field, they're VND 100 million (for organizations) and VND 50 million (for those).

However, this Decree adds some new acts regarded as being “using illegal invoices” such as: usage of e-invoices who are not registered with any tax authority; using e-invoices of which tax authority’s codes have yet to be granted according to regulations; using invoices with all the invoicing date following your date where a tax authority determines the seller is just not doing work on the address registered which has a competent regulatory authority, etc.

These acts are considered to become “illegally using invoices”: using invoices that don't contain all compulsory contents as prescribed; usage of invoices with discrepancies in amounts taken care of 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 tax amount, the higher-than-prescribed quantity of tax exemption, reduction or refund which can be at least VND 100 million, or even the value of services or goods rendered that is at least VND 500 million, will be determined like a large-scale tax-related administrative violation.

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

This Decree shall work from December 5th, 2020.


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