Can an enterprise temporarily suspending business operations in Vietnam still issue invoices separately?
Can an enterprise temporarily suspending business operations in Vietnam still issue invoices separately?
Pursuant to Clause 2, Article 13 of Decree 123/2020/ND-CP stipulating the issuance and declaration of tax obligations when tax authorities issue electronic invoices with tax authority codes separately as follows:
Application of electronic invoices when selling goods and providing services
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2. Regulations on issuance and declaration of tax obligations when tax authorities issue electronic invoices with tax authority codes separately are as follows:
a) Types of invoices issued separately
a.1) Issuance of electronic invoices with tax authority codes separately is the sale invoice in the following cases:
- Households and individuals conducting business as regulated under Clause 4, Article 91 of Tax Administration Law No. 38/2019/QH14 who do not meet the conditions for using electronic invoices with tax authority codes but need an invoice to give to customers;
- Organizations that are not in business but have arising transactions of sales of goods and provision of services;
- Enterprises, after dissolution or bankruptcy, have invalidated tax codes but have arising asset liquidation transactions that need invoices for the buyers;
- Enterprises, economic organizations, households, and individuals engaged in business subject to value-added tax by direct method under the following cases:
+ Ceasing business operations but have not completed the procedures for invalidating tax codes and still have arising asset liquidation transactions that need invoices for buyers;
+ temporarily suspending business operations operations but need invoices to hand over to customers for contracts signed before the tax authority’s notice of business cessation;
+ Being compelled by tax authorities to stop using invoices.
a.2) Issuance of electronic invoices with tax authority codes separately is value-added invoice in the following cases:
- Enterprises, economic organizations, and other organizations subject to value-added tax by the deduction method in the following cases:
+ Ceasing business operations but have not completed the procedures for invalidating tax codes and still have arising asset liquidation transactions that need invoices for buyers;
+ temporarily suspending business operations operations but need invoices to hand over to customers for contracts signed before the tax authority’s notice of business cessation;
+ Being compelled by tax authorities to stop using invoices.
- Organizations and state agencies that are not subject to value-added tax by the deduction method but have auctioned assets where the auctioned price includes value-added tax explicitly stated in the auction documents approved by competent authorities, shall be issued value-added invoices for the buyers.
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In cases where the enterprise temporarily suspending business operations but needs an invoice to give to customers to fulfill contracts signed before the tax authority's notice of business cessation, invoices can be issued separately. Specifically:
- Enterprises subject to value-added tax by the direct method shall be issued electronic invoices with tax authority codes separately as sale invoices.
- Enterprises subject to value-added tax by the deduction method shall be issued electronic invoices with tax authority codes separately as value-added invoices.
Can enterprises temporarily suspending business operations in Vietnam issue invoices separately? (Image from the Internet)
What are the penalties for issuing invoices at the wrong time in Vietnam?
According to Article 24 of Decree 125/2020/ND-CP, which stipulates penalties for violations regarding the issuance of invoices for selling goods and services:
Depending on the level of violation, enterprises issuing invoices at the wrong time will be penalized as follows:
| No. | Violation | Penalty |
|---|---|---|
| 1 | Issuing invoices at the wrong time but not leading to delayed tax obligations and with mitigating circumstances | Warning |
| 2 | Issuing invoices at the wrong time but not leading to delayed tax obligations | Fine from 3 - 5 million VND |
| 3 | Issuing invoices at the wrong time (excluding the two cases above) | Fine from 4 - 8 million VND |
Note: The fines mentioned above apply to organizations; for individuals, the fine amount is half of that for organizations.
What is the time limits for imposition of administrative penalties regarding invoices in Vietnam?
Pursuant to Article 8 of Decree 125/2020/ND-CP (amended by Clause 1, Article 1 of Decree 102/2021/ND-CP) stipulating:
Time limits for imposition of administrative penalties regarding tax and invoices; period to be considered as not yet penalized; tax recovery period
1. Time limits for imposition of administrative penalties regarding invoices
a) The time limits for imposition of administrative penalties regarding invoices is 2 years.
b) The starting point of the time limits for imposition of administrative penalties regarding invoices is regulated as follows:
For ongoing administrative violations as stipulated in Point c of this clause, the statute of limitations is counted from the day the authorized person discovers the violation.
For completed administrative violations as stipulated in Point d of this clause, the statute of limitations is counted from the day the violation ended.
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The time limits for imposition of administrative penalties regarding invoices is 2 years.
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