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, aside from administrative violations linked to fees and charges; administrative violations related to 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.

When compared to the present regulations, the most fine levels imposed on administrative penalties for tax or invoice-related violations aren’t changed. In particular, inside the tax field, they’re VND 200 million (for organizations) and VND 100 million (for those); in the invoice field, they are VND 100 million (for organizations) and VND 50 million (for individuals).

However, this Decree adds new acts regarded as being “using illegal invoices” including: using e-invoices which aren’t registered with any tax authority; using e-invoices which tax authority’s codes have yet to be granted in accordance with regulations; usage of invoices together with the invoicing date following your date on what a tax authority determines that this seller is just not working with the address registered having a competent regulatory authority, etc.

These acts are considered to be “illegally using invoices”: utilization of invoices that will not contain all compulsory contents as prescribed; utilization of invoices with discrepancies in amounts purchased services or goods rendered, or discrepancies in required data fields between an invoice’s copies.

Any administrative violation with the underpaid tax amount, the evaded amount of taxes, the higher-than-prescribed volume of tax exemption, reduction or refund that is no less than VND 100 million, or price of goods or services rendered that’s at the very least VND 500 million, will probably be determined as being 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 being a large-scale invoice-related administrative violation.

This Decree shall take effect from December 5th, 2020.

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