Is failing to issue invoices when selling goods considered tax evasion in Vietnam?

Is failing to issue invoices when selling goods considered tax evasion in Vietnam?

Pursuant to Article 143 of the 2019 Law on Tax Administration, the specific regulations on acts of tax evasion are as follows:

Acts of Tax Evasion

1. Not submitting taxpayer registration documents; not submitting tax declaration documents; submitting tax declaration documents more than 90 days past the deadline for filing tax declarations or past the extended deadline for submitting tax declarations as stipulated by this Law.

2. Not recording in the accounting books the receipts related to the determination of the payable tax amount.

3. Not issuing invoices when selling goods or services in accordance with the provisions of law or recording the value on the sales invoice lower than the actual payment value of the goods or services sold.

4. Using illegal invoices, documents or unlawfully using invoices to account for goods, input materials in activities arising tax obligations, reducing the payable tax amount or increasing the tax exemption amount, tax reduction amount, deductible tax amount, refundable tax amount, tax amount not to be paid.

5. Using documents that do not reflect the true nature of the transaction or the actual transaction value to incorrectly determine the payable tax amount, tax exemption amount, tax reduction amount, refundable tax amount, tax amount not to be paid.

6. Incorrectly declaring export, import goods without supplementing tax declaration documents after the goods have been cleared through customs.

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Thus, according to the above regulations, failing to issue invoices when selling goods is considered an act of tax evasion.

Is failing to issue invoices when selling goods considered tax evasion in Vietnam? (Image from the Internet)

What is the administrative penalty for tax evasion in Vietnam?

Pursuant to point b clause 1 Article 17 of Decree 125/2020/ND-CP, the specific administrative penalty levels for acts of tax evasion are as follows:

[1] A fine equal to the evaded tax amount for the taxpayer with at least one mitigating circumstance when committing one of the following violations:

- Not submitting taxpayer registration documents; not submitting tax declaration documents or submitting tax declaration documents more than 90 days past the deadline, except for cases specified in point b, c clause 4 and clause 5 Article 13 of Decree 125/2020/ND-CP.

- Not recording in accounting books the receipts related to the determination of the payable tax amount, not declaring, misdeclaring leading to insufficient payable tax amount or increasing the refundable, exempted, reduced tax amount, except for acts specified in Article 16 of this Decree;

- Not issuing invoices when selling goods or services, except for cases where the taxpayer declared taxes for the value of goods or services sold, provided in the corresponding tax period; issuing incorrect invoices on the number, value of goods, services to declare taxes lower than the actual and is detected after the deadline for submitting tax declarations;

- Using illegal invoices; unlawfully using invoices to declare taxes, reducing the payable tax amount or increasing the refundable, exempted, reduced tax amount;

- Using illegal documents; unlawfully using documents; using documents not reflecting the true nature of transactions or the actual transaction value to incorrectly determine the payable tax amount, tax exemption amount, tax reduction amount, refundable tax amount; preparing procedures, documents to cancel materials, goods not realistically reducing the payable tax amount or increasing the refundable, exempted, reduced tax amount;

- Using goods subject to non-taxable, tax-exempt, tax-free consideration not in accordance with the stipulated purpose without declaring the change in use purpose, declaring taxes with the tax authority;

- Conducting business activities while applying for suspension, temporary suspension of business activities without notifying the tax authority, except for cases specified in point b clause 4 Article 10 of Decree 125/2020/ND-CP.

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

A fine of 2 times the evaded tax amount for taxpayers 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 amount for taxpayers 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 amount for taxpayers committing one of the acts specified in clause 1 Article 7 of Decree 125/2020/ND-CP with three or more aggravating circumstances.

Is the information of taxpayers publicized in case of tax evasion in Vietnam?

According to the regulations at point a clause 1 Article 100 of the 2019 Law on Tax Administration, the cases in which the taxpayer’s information is publicized are as follows:

Publicizing Taxpayers' Information

1. Tax authorities are authorized to publicize taxpayers' information in the following cases:

a) Tax evasion, delinquency in paying taxes and other dues belonging to the state budget on time; owing taxes and other dues belonging to the state budget;

b) Violating tax laws affecting the tax rights and obligations of other organizations and individuals;

c) Not complying with the requirements of the tax authorities as prescribed by law.

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Thus, according to the above regulations, tax authorities are authorized to publicize taxpayers' information in cases of tax evasion.