Facts You Should 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 in connection with charges and fees; administrative violations related to taxes on exported or imported goods 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 are not changed. In particular, in the tax field, they are VND 200 million (for organizations) and VND 100 million (for folks); from the invoice field, they are VND 100 million (for organizations) and VND 50 million (for people).

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

These acts are thought to be “illegally using invoices”: utilization of invoices that don't contain all compulsory contents as prescribed; usage of invoices with discrepancies in amounts covered 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 that is no less than VND 100 million, or the value of goods or services rendered which can be at the very least VND 500 million, will be determined as a large-scale tax-related administrative violation.

Pertaining to invoice-related violation, any administrative violation involving no less than 10 invoice numbers will probably 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 check this useful web page: check it out