Vietnam: What regulated entities does the enforcement by invalidating invoices apply to?

Vietnam: What regulated entities does the enforcement by invalidating invoices apply to?

Based on Clause 1, Article 13 of Circular 215/2013/TT-BTC stipulates as follows:

Enforcement by invalidating invoices

1. Applicable subjects

Enforcement by invalidating invoices is applicable to subjects under coercion where it is not feasible to enforce by deducting money from the accounts of the coerced at the State Treasury, credit institutions, requiring account freeze; deduction of part of salary or income for individuals or these measures have been applied but the tax, fines, and late payment of tax are still not fully collected into the state budget.

Notified invalidating invoices include types of invoices: self-printed invoices by business organizations and individuals; pre-printed invoices by business organizations, individuals, or tax authorities; electronic invoices created and issued by business organizations and individuals following legal regulations.

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Thus, enforcement by invalidating invoices applies to the following subjects:

Subjects under coercion where measures such as deducting money from the accounts of the coerced at the State Treasury, credit institutions, requiring account freeze; deduction of part of salary or income for individuals, or these measures have been applied but the tax, fines, and late payment of tax are still not fully collected into the state budget.

Vietnam: What regulated entities does the enforcement by invalidating invoices apply to? (Image from the Internet)

What is the procedure for the enforcement by invalidating invoices in Vietnam?

Based on Clause 4, Article 13 of Circular 215/2013/TT-BTC, amended by Clause 7, Article 1 of Circular 87/2018/TT-BTC, the procedure for enforcement by invalidating invoices is prescribed as follows:

- On the day the enforcement decision takes effect, the tax authority must publish the enforcement decision and the notice of invoices no longer valid for the coerced subject on the information portal of the General Department of Taxation (www.gdt.gov.vn).

- During the enforcement period, the tax authority will not accept the invoice issuance notification dossier from the organization or individual being coerced.

- The tax authority will notify the cessation of enforcement measures along with a notice that the invoices are valid again (form No. 09/CC issued together with Circular 215/2013/TT-BTC) when the coerced subjects have paid the outstanding tax, fines, late tax payments, late payment of fines into the state budget or the outstanding tax, fines, late payment have been extended or installment payments or notifications not to calculate late payment have been issued by the tax authority.

- On the day the notice of invoices being valid again is issued, the tax authority must publish the notice on the General Department of Taxation's information portal (www.gdt.gov.vn).

Vietnam: Is the decision to enforce by invalidating invoices issued before or after the decision to enforce by distraining property?

Based on Clause 1, Article 14 of Circular 215/2013/TT-BTC stipulates as follows:

Enforcement by the method of distraining property, auctioning distrained assets as prescribed by law

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3. Decision of enforcement by the method of distraining property, auctioning distrained assets

a) The enforcement decision is made according to form No. 01/CC issued with this Circular, in which the enforcement by distraining property, auctioning distrained assets clearly states: name, address, and tax code of the coerced subject; reason for coercion; amount coerced; time, place of distraining property; type of asset distrained; characteristics of the distrained assets; name, address, and account number of the state budget account at the State Treasury; method of transferring the coerced amount to the State Treasury.

b) The enforcement decision is issued immediately after the expiration date of the enforcement decision by the method of invalidating invoices or immediately after the conditions to proceed to the next measure prescribed in point d Clause 2 Article 13 of this Circular.

c) The enforcement decision by the method of distraining property is sent to the organization, individual whose assets are distrained, the People's Committee of the commune where that individual resides or the organization located in the area or the agency where the individual works at least 05 (five) working days before the coercive distraint of assets, except for cases where notification would impede the execution of distraint.

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From the above regulations, it can be seen that the enforcement decision by distraining property is issued immediately after the expiration of the enforcement decision by the method of invalidating invoices.

In other words, the decision to enforce by invalidating invoices is issued before the decision to enforce by distraining property.