• Sanctioning Administrative Violations On Invoices

    Details It's Important To Be Informed About 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 fees and charges; administrative violations in connection with taxes on exported or imported goods that 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 present regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations aren't changed. Particularly, inside the tax field, these are VND 200 million (for organizations) and VND 100 million (for people); from the invoice field, they are VND 100 million (for organizations) and VND 50 million (for folks).

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    However, this Decree adds new acts regarded as “using illegal invoices” like: utilization of e-invoices who are not registered with any tax authority; using e-invoices that tax authority’s codes have not yet been granted in accordance with regulations; use of invoices using the invoicing date as soon as the date on which a tax authority determines the seller is just not doing work at the address registered using a competent regulatory authority, etc.
    These acts are thought to get “illegally using invoices”: use of invoices that will not contain all compulsory contents as prescribed; use 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 with the underpaid tax amount, the evaded tax amount, the higher-than-prescribed volume of tax exemption, reduction or refund which is no less than VND 100 million, or perhaps the valuation on services or goods rendered which can be at least VND 500 million, shall be determined being a large-scale tax-related administrative violation.
    Regarding invoice-related violation, any administrative violation involving at the very least 10 invoice numbers will be determined like a large-scale invoice-related administrative violation.
    This Decree shall be effective from December 5th, 2020.
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