Is a train ticket considered an invoice in Vietnam?

Is a train ticket considered an invoice in Vietnam?

Based on Clause 1, Article 3 of Decree 123/2020/ND-CP, it is interpreted as follows:

An invoice is an accounting document generated by organizations and individuals selling goods or providing services, recording the sale of goods or provision of services. Invoices are represented in the form of electronic invoices or invoices printed by tax authorities.

According to Clause 5, Article 8 of Decree 123/2020/ND-CP, specific regulations on types of invoices are as follows:

Types of Invoices

...

3. Electronic invoices for selling public assets are used when selling the following assets:

a) Public assets at agencies, organizations, units (including state-owned houses);

b) Infrastructure assets;

c) Public assets entrusted to enterprises by the government, not included in state capital components in the enterprise;

d) Assets of projects using state funds;

dd) Assets that have established ownership of the whole people;

e) Public assets confiscated by decision of competent authorities;

g) Materials recovered from handling public assets.

4. Electronic invoices for selling national reserve goods are used when agencies, units under the national reserve agency system sell national reserve goods as stipulated by law.

5. Other types of invoices include:

a) Stamps, tickets, cards with prescribed form and contents in this Decree;

b) Receipts of air transport charges; receipts of international transportation fees; bank service fee receipts except for cases specified at point a of this clause where the form and content are prepared according to international customs and relevant legal regulations.

...

Thus, according to the above regulation, a train ticket for going home during Tet is a type of invoice.

Is a train ticket considered an invoice in Vietnam? (Image from the Internet)

Is failing to issue an Invoice when selling goods or services considered tax evasion in Vietnam?

According to Article 143 of the Law on Tax Administration 2019, specific provisions on tax evasion behaviors are as follows:

Tax Evasion Behaviors

1. Not submitting taxpayer registration; not submitting tax return dossiers; submitting tax return dossiers 90 days after the deadline for tax return submission or deadline for extending submission as prescribed by this Law.

2. Not recording in accounting books revenue related to determining the payable tax amount.

3. failing to issue invoices when selling goods or services as prescribed by law or recording an invoice value lower than the actual payment for sold goods or services.

4. Using illegal invoices, documents for accounting goods, materials for tax obligations that reduce payable tax amounts or increase exempted, reduced, deducted, refunded, or non-payable tax amounts.

5. Using documents that do not reflect the true essence of transactions or actual transaction values to incorrectly determine the payable tax amount, exempted, reduced, refunded, or non-payable tax amounts.

6. Declaring incorrectly about exported or imported goods without supplementing the tax return after goods clearance.

...

Therefore, according to the above regulation, failing to issue an invoice when selling goods or services is considered a tax evasion act.

What are the administrative penalties for tax evasion in Vietnam?

Based on Point b, Clause 1, Article 17 of Decree 125/2020/ND-CP, specific regulations on administrative penalties for tax evasion are as follows:

[1] A fine of 1 time the evaded tax amount is imposed on taxpayers with one or more mitigating circumstances when committing one of the following violations:

- Not submitting taxpayer registration dossiers; not submitting tax returns or submitting tax returns 90 days after the deadline for tax return submission or deadline for extension, excluding cases specified at points b, c, Clause 4 and Clause 5, Article 13 of Decree 125/2020/ND-CP.

- Not recording in accounting books revenue related to determining the payable tax amount, not declaring, declaring incorrectly leading to a shortage of tax payable or increasing tax refunds, exemptions, or reductions, except for actions stipulated in Article 16 of this Decree;

- failing to issue invoices when selling goods or services, except when the taxpayer has declared taxes for the value of goods or services sold in the applicable tax period; issuing incorrect invoices for goods and services leading to underreporting and being discovered after the tax return submission deadline;

- Using illegal invoices; illegally using invoices to declare and thereby reducing tax payable or increasing tax refunds, exemptions, reductions;

- Using illegal documents; illegally using documents; using documents that do not reflect the true essence or value of transactions to incorrectly determine payable tax amounts, exemptions, reductions, refunds; making false documents to void materials, goods, and thereby reducing tax payable or increasing refunds, exemptions, reductions;

- Using non-taxable, tax-exempt, tax-free goods for purposes other than those specified without declaring the change in use purposes for taxation with the tax authority;

- Operating business activities during requested business suspension without notifying tax authorities, except as stipulated in point b, Clause 4, Article 10 of Decree 125/2020/ND-CP.

[2] A fine of 1.5 times the evaded tax amount is imposed on taxpayers committing one of the acts specified in Clause 1, Article 7 of Decree 125/2020/ND-CP without any mitigating or aggravating circumstances.

A fine of 2 times the evaded tax is imposed for committing one of the acts specified in Clause 1, Article 7 of Decree 125/2020/ND-CP with one aggravating circumstance.

[3] A fine of 2.5 times the evaded tax is imposed for committing one of the acts specified in Clause 1, Article 7 of Decree 125/2020/ND-CP with two aggravating circumstances.

[4] A fine of 3 times the evaded tax is imposed for committing one of the acts specified in Clause 1, Article 7 of Decree 125/2020/ND-CP with three or more aggravating circumstances.

In addition to the penalties mentioned above, the taxpayer is also subject to remedial measures, including being required to pay the full evaded tax amount to the state budget and adjusting the losses and deductible input VAT on the tax dossier.