Is taking bribes when carrying out invoice-related inspections a prohibited act related to invoices and records in Vietnam?

Is taking bribes when carrying out invoice-related inspections a prohibited act related to invoices and records in Vietnam?

Based on Point c, Clause 1, Article 5 of Decree 123/2020/ND-CP which specifically regulates prohibited acts related to invoices and records as follows:

Prohibited acts related to invoices and records

1. For tax officials

a) Causing inconvenience or difficulty for organizations or individuals seeking to purchase invoices or records;

b) Engaging in covering up or colluding with organizations or individuals to use illegal invoices or records;

c) Taking bribes when carrying out invoice-related inspections.

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Thus, according to the aforementioned regulation, accepting bribes during invoice inspections is strictly prohibited related to invoices and records.

Is taking bribes when carrying out invoice-related inspections a prohibited act related to invoices and records in Vietnam? (Image from the Internet)

What are rules for issuance, management, and use of invoices and records in Vietnam?

Based on Article 4 of Decree 123/2020/ND-CP, specific regulations on rules for issuing, managing, and using invoices and records are as follows:

rules for issuing, Managing, Using Invoices and records

[1] When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods or services are used for promotions, advertisements, samples; goods or services given, offered, presented, exchanged, or paid as wages to employees and for internal consumption (excluding internally circulated goods for continued production processes); goods issued under forms of lending, borrowing, or return) and must fill in all contents as prescribed in Article 10 of Decree 123/2020/ND-CP. In the case of using e-invoices, compliance with standard data formats of the tax authority as prescribed in Article 12 of Decree 123/2020/ND-CP is required.

[2] When deducting personal income tax, collecting taxes, fees, charges, tax-deducting organizations, fee-collecting organizations, tax-collecting organizations must issue tax deduction documents, and tax, fee, charge receipts to the taxpayer or those whose income is taxed, and fill in all contents as prescribed in Article 32 of Decree 123/2020/ND-CP. If using electronic receipts, compliance with standard data formats of the tax authority is required. In the case of individuals authorizing tax settlement, tax deduction documents aren't issued. For individuals not signing labor contracts or contracts less than 3 months, organizations or individuals paying income may choose to issue a tax deduction document for each deduction or one document for multiple deductions within a tax period. For individuals signing labor contracts of 3 months or more, organizations or individuals paying income issue one tax deduction document per tax period.

[3] Before using invoices, receipts, businesses, economic organizations, other organizations, households, and individual businesses, tax, fee, charge-collecting organizations must register with the tax authority or announce issuance according to Article 15, Article 34, and Clause 1 Article 36 of Decree 123/2020/ND-CP. For invoices and receipts printed by the tax authority, the tax authority announces issuance according to Clause 3 Article 24 and Clause 2 Article 36 of Decree 123/2020/ND-CP.

[4] Organizations, households, and individual businesses must report their use of invoices purchased from the tax authority, and report the use of self-printed or purchased receipts according to Article 29, Article 38 of Decree 123/2020/ND-CP.

[5] Registration, management, and use of e-invoices, and electronic records must comply with the legal regulations on electronic transactions, accounting, tax, tax management, and regulations under this Decree.

[6] Invoice and record data when selling goods, providing services, data from tax transactions, tax deductions, and paying taxes, fees, charges, serve as a database for tax management and providing invoice, record information to relevant organizations and individuals.

[7] Suppliers who are enterprises, economic organizations, or others may authorize a third party to issuee e-invoices for sales or service provision. Invoices authorized to a third party must still show the selling unit's name as the authorizing party. The authorization must be documented in writing between the authorizing party and the authorized party outlining full details of the authorized invoice (authorization purpose, authorization period, authorized invoice payment method) and must be reported to the tax authority when registering to use e-invoices. In the case of authorized e-invoices not coded by the tax authority, the authorizing party must send e-invoice data to the tax agency through service providers. The Ministry of Finance specifies this content.

[8] Fee and charge-collecting organizations may authorize a third party to issue fee and charge receipts. Receipts authorized to a third party must still list the fee and charge-collecting organization as the authorizing party. Authorization must be documented in writing between the authorizing party and the authorized party outlining full details of the authorized receipt (authorization purpose, authorization period, authorized receipt payment method) and must be reported to the tax authority when announcing receipt issuance.

What are responsibilities of the General Department of Taxation of in managing e-invoices and records?

Based on Clause 1, Article 57 of Decree 123/2020/ND-CP, specific regulations regarding the responsibilities of the tax authorities in managing e-invoices and records are as follows:

The General Department of Taxation of Vietnam is responsible for:

- Developing a database on e-invoices, invoices printed by the tax authority, and electronic records to serve tax management, state management tasks by other state agencies (such as the police, market management, border army, and related agencies), and to meet verification and reconciliation needs of enterprises, organizations, and individuals;

- Announcing types of invoices and records that have been issued, reported lost, or are no longer valid for use.