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Decree No. 125/2020/ND-CP dated October 19th, 2020 from 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, with the exception of 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 to the current regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. Specifically, within the tax field, they are 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 those).

However, this Decree adds some new acts regarded as being “using illegal invoices” for example: using e-invoices which are not registered with any tax authority; using e-invoices of which tax authority’s codes haven’t been granted in accordance with regulations; utilization of invoices using the invoicing date following your date where a tax authority determines that the seller isn’t conducting business with the address registered with a competent regulatory authority, etc.

These acts are viewed to be “illegally using invoices”: utilization of invoices that don’t contain all compulsory contents as prescribed; usage of invoices with discrepancies in amounts taken care of services or goods 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 volume of tax exemption, reduction or refund that’s at least VND 100 million, or even the value of services or goods rendered that’s no less than VND 500 million, shall be determined as being a large-scale tax-related administrative violation.

Regarding 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 take effect from December 5th, 2020.

For additional information about sanctioning administrative violations on invoices view this internet page: click for more