How are fines for canceling invoices in breach of Vietnam’s regulations?

According to the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, penalties for violations against regulations on cancellation, destruction or elimination of invoices shall be up to VND 8,000,000, specifically as follows:

- Penalties in the form of cautions shall be imposed for the act of canceling or destroying invoices from 1 to 5 days after expiry of the regulated time limit under mitigating circumstances.

- Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for one of the following violations:

+ Canceling invoices released but not issued, or invalidated invoices, in breach of regulations.

+ Failing to cancel invoices released but not issued yet, or invalidated invoices, or failing to cancel invoices purchased from tax authorities but expired;

+ Canceling or destroying invoices from 1 to 10 working days after expiry of the regulated time limit, except the case prescribed in clause 1 of this Article.

- Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

+ Canceling or destroying invoices at least 11 working days after expiry of the regulated time limit;

+ Failing to cancel or destroy invoices in accordance with laws;

+ Failing to cancel e-invoices containing defects after being issued after expiry of the time limit for tax authorities’ issuing notification of these defects to sellers;

+ Failing to cancel externally ordered invoices not released yet but no longer used according to regulations;

+ Canceling or destroying invoices in breach of procedures or processes prescribed by laws;

+ Destroying invoices though these invoices are not classified as those subject to destruction under laws.

View more details at the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, effective from December 05, 2020.

Thuy Tram

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