Shall an enterprise selling counterfeits be suspended from using e-invoices in Vietnam?

Shall an enterprise selling counterfeits be suspended from using e-invoices in Vietnam?

Pursuant to Point đ, Clause 1, Article 16 of Decree 123/2020/ND-CP which stipulates cases of suspension from using e-invoices as follows:

Suspension of e-Invoice Usage

1. Enterprises, economic organizations, other organizations, households, and individuals engaged in enterprise activities will be suspended from using e-invoices with a tax authority code and also those without a tax authority code if they fall into the following cases:

a) Enterprises, economic organizations, other organizations, households, individuals in enterprise cease their tax identification numbers' validity;

b) Enterprises, economic organizations, other organizations, households, individuals in enterprise are determined and notified by the tax authority to be inactive at the registered address;

c) Enterprises, economic organizations, other organizations, households, individuals in enterprise notify the competent state management agency of a temporary cessation of enterprise;

d) Enterprises, economic organizations, other organizations, households, individuals in enterprise receive notification from the tax authority for suspending e-invoice usage to enforce tax debt collection;

dd) In cases involving the use of e-invoices to sell smuggled goods, prohibited goods, counterfeits, or goods infringing intellectual property rights, detected and reported by the competent authority to the tax authority;

e) In cases involving the creation of e-invoices for the purpose of selling goods, offering services for fraudulent monetary gain from organizations or individuals, detected and reported by the competent authority to the tax authority;

g) In cases where the enterprise registration authority or the competent state authority requests enterprises to temporarily cease their enterprise activities subject to conditions when they are found not to meet the enterprise conditions required by law.

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Thus, if an enterprise engages in the use of e-invoices to sell counterfeits, and this action is detected and reported to the tax authority by the competent authority, it will be suspended from using e-invoices both with and without a tax authority code.

Shall an enterprise selling counterfeits be suspended from using e-invoices in Vietnam? (Image from the Internet)

What is the procedure for suspension of use of e-invoices in Vietnam?

According to Clause 2, Article 16 of Decree 123/2020/ND-CP, the procedure for suspension of use of e-invoices is as follows:

- The direct managing tax authority sends a notification to taxpayers falling under points đ, e, g, Clause 1, Article 16 of Decree 123/2020/ND-CP requesting the taxpayer to explain or supplement information and documents related to the use of e-invoices.

- The taxpayer must provide an explanation or supplement information and documents within no more than 2 working days from the date the tax authority issues the notification. Taxpayers can explain directly at the tax authority or supplement information and documents in writing.

- The taxpayer continues to use e-invoices or supplement explanations as follows:

+ If the taxpayer has provided sufficient explanation or supplementary information and documents and can prove that the use of e-invoices complies with legal regulations, they may continue using e-invoices.

+ If the taxpayer provides explanation or supplementary information and documents but cannot prove legal compliance, the tax authority continues to notify them to supplement more information and documents. The deadline for supplementation is 2 working days from the date the tax authority issues the notification.

- If the taxpayer does not explain, supplement information and documents within the deadline specified in the notification, the tax authority issues a notification requesting the taxpayer to cease using e-invoices with a tax authority code or those without and acts in accordance with regulations.

What are the rules for issuance, management and use of e-invoices in Vietnam?

According to Article 90 of the Law on Tax Administration 2019 stipulating the rules of issuance, management and use of e-invoices as follows:

- When selling goods or providing services, the seller must create an e-invoice to deliver to the buyer in accordance with the standard data format and record complete content as prescribed by tax law and accounting law, regardless of the value of each transaction of selling goods or providing services.

- In cases where the seller uses cash registers, they must register to use e-invoices generated from cash registers connected to the e-data transfer system with the tax authority.

- The registration, management, and use of e-invoices in trading goods and providing services must comply with the regulations of e-transactions law, accounting law, and tax law.

- The issuance of a tax authority code on e-invoices is based on the information provided by enterprises, economic organizations, other organizations, households, enterprise individuals on the invoice. Enterprises, economic organizations, other organizations, households, enterprise individuals are responsible for the accuracy of the information on the invoice.