Is suspension of invoice usage considered a tax enforcement measure in Vietnam?

Is suspension of invoice usage considered a tax enforcement measure in Vietnam?

Based on the provision of Clause 1, Article 125 of the Law on tax administration 2019, measures of enforcement for administrative tax administration decisions are regulated as follows:

Measures of Enforcement for Administrative tax administration Decisions

1. Measures of enforcement for administrative tax administration decisions include:

a) Deducting money from the bank accounts of entities subject to enforcement for administrative tax administration decisions at the State Treasury, commercial banks, or other credit institutions; account freezing;

b) Deductions from salaries or income;

c) Halting customs procedures for export and import goods;

d) Suspension of invoice usage;

đ) Asset sealing, auction of sealed assets according to legal regulations;

e) Collecting money, other assets of the subject to enforcement for administrative tax administration decisions held by authorities, organizations, or individuals;

g) Revoking business registration certificates, business licenses, cooperative registration certificates, investment registration certificates, establishment and operation licenses, practice certificates.

2. The enforcement measures stipulated in Clause 1 of this Article expire when the tax debt is fully paid into the state treasury.

3. The application of enforcement measures for administrative tax administration decisions is implemented as follows:

a) For enforcement measures specified in points a, b, and c of Clause 1 in this Article, the tax administration agency applies suitable enforcement measures based on actual circumstances;

b) Regarding enforcement measures specified in points d, đ, e, and g of Clause 1 in this Article, if the prior enforcement measure is not applicable, the tax administration agency will shift to the subsequent measure;

c) If the enforcement decision on a certain measure is still in effect but ineffective, and if the tax administration agency has sufficient information and conditions, it will execute the prior enforceable measure or the subsequent measure as specified in Clause 1 of this Article.

Thus, according to the above regulation, suspension of invoice usage is one of the measures for enforcement of administrative tax administration decisions.

Is suspension of invoice usage considered a tax enforcement measure in Vietnam? (Image from the Internet)

Do tax enforcement decision include time and location of enforcement?

Based on the provision of Clause 1, Article 127 of the Law on tax administration 2019, regulations on tax enforcement decision are as follows:

Tax enforcement decision

1. An enforcement decision for administrative tax administration includes the following main contents:

a) Date of decision issuance;

b) Basis for the decision;

c) Issuer of the decision;

d) Name, address, tax code of the taxpayer subject to enforcement for administrative tax administration;

dd) Reason for enforcement of administrative tax administration decisions;

e) Enforcement measure for administrative tax administration decisions;

g) Time and location of enforcement;

h) Leading agency, coordinating agency for executing the enforcement of administrative tax administration decisions.

2. The enforcement decision must be sent to the entity subject to enforcement, the immediate superior tax administration agency, and related organizations or individuals; if there are sufficient conditions for electronic transactions in tax administration, the enforcement decision is sent electronically and updated on the electronic portal of the tax administration agency; if enforcement is by the measure specified in point đ of Clause 1, Article 125 of this Law, the enforcement decision must be sent to the Chairman of the Commune People's Committee where the enforcement is executed before implementation.

3. The enforcement decision is valid for one year from the date of issuance; if enforcement involves deduction from accounts or freezing accounts of the subject to enforcement, it is valid for 30 days from the issuance date.

Thus, according to the regulation, the contents of an enforcement decision for administrative tax administration will include the time and location of enforcement.

What are cases of tax enforcement in Vietnam?

According to Article 124 of the Law on tax administration 2019, situations subject to enforcement of administrative tax administration decisions include:

(1) Taxpayers with tax debts exceeding 90 days from the prescribed deadline.

(2) Taxpayers with tax debts upon expiration of the tax payment extension.

(3) Taxpayers with tax debts engaged in asset dispersion or absconding.

(4) Taxpayers failing to comply with administrative penalty decisions on tax administration within the period specified in the administrative penalty decision on tax administration, except in cases of deferred or suspended penalty execution.

(5) Non-application of tax enforcement measures for taxpayers with tax debts deferred by tax administration agencies within the debt deferral period; non-imposition of late tax payment interest according to the Law on tax administration; allowed to pay tax debts in installments not exceeding 12 months from the start date of tax enforcement period.

Payment of tax debts in installments is considered by the head of the supervisory agency based on a taxpayer's request and must have collateral from a credit institution.

(6) Non-application of enforcement measures for taxpayers with unpaid customs fees and transit goods and vehicle charges.

(7) Individuals who are legal representatives of taxpayers must complete tax obligations for enterprises under enforcement before exiting and may be temporarily barred from exiting according to exit and entry regulations.