Details You Need To Be Familiar With 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, apart from administrative violations related to charges and fees; administrative violations associated with 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.

In comparison to the current regulations, the absolute maximum fine levels imposed on administrative penalties for tax or invoice-related violations are certainly not changed. Especially, within the tax field, they may be VND 200 million (for organizations) and VND 100 million (for people); from the invoice field, they may be VND 100 million (for organizations) and VND 50 million (for individuals).

However, this Decree adds new acts considered to be “using illegal invoices” for example: using e-invoices that are not registered with any tax authority; utilization of e-invoices of which tax authority’s codes haven't been granted according to regulations; usage of invoices using the invoicing date after the date on which a tax authority determines that the seller is not doing work on the address registered with a competent regulatory authority, etc.

These acts are considered to be “illegally using invoices”: using invoices that do not contain all compulsory contents as prescribed; use of invoices with discrepancies in amounts purchased 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 quantity of tax exemption, reduction or refund which can be at least VND 100 million, or value of services or goods rendered which can be a minimum of VND 500 million, should 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 probably be determined like a large-scale invoice-related administrative violation.

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


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