What are cases of explanations about tax or invoice-related administrative violations in Vietnam?

What are cases of explanations about tax or invoice-related administrative violations in Vietnam?

Based on Article 37 of Decree 125/2020/ND-CP, the following stipulations apply:

Explanations about tax or invoice-related administrative violations

1. Cases requiring explanations about tax or invoice-related administrative violations

a) tax or invoice-related administrative violations discovered through tax inspection, tax audit, or cases with electronic administrative violation records;

b) Administrative violations stipulated in Articles 16, 17, 18; clause 3 of Article 20; clause 7 of Article 21; Article 22, and Article 28 of this Decree.

2. The explanations about tax or invoice-related administrative violations is conducted following legal regulations on handling administrative violations.

Thus, the following cases require explanations about tax or invoice-related administrative violations:

- tax or invoice-related administrative violations discovered through tax inspection, tax audit, or cases with electronic administrative violation records;

- The following administrative violations:

+ Incorrect tax declarations leading to a deficit in the payable tax amount or an increase in the tax amount exempted, reduced, or refunded as stipulated in Article 16 of Decree 125/2020/ND-CP.

+ Tax evasion acts as stipulated in Article 17 of Decree 125/2020/ND-CP.

+ Administrative violations concerning tax related to commercial banks or entities guaranteeing tax payment as stipulated in Article 18 of Decree 125/2020/ND-CP

+ Violation of regulations on self-printed invoices as stipulated in clause 3, Article 20 of Decree 125/2020/ND-CP

+ Violation of regulations on printing of self-printed invoices as stipulated in clause 7, Article 21 of Decree 125/2020/ND-CP

+ Acts of giving, selling invoices as stipulated in Article 22 of Decree 125/2020/ND-CP

+ Use of illegal invoices, unauthorized use of invoices as stipulated in Article 28 of Decree 125/2020/ND-CP

What are cases of explanations about tax or invoice-related administrative violations in Vietnam? (Image from the Internet)

What is the Time limit for execution of tax or invoice-related administrative penalty charge decisions?

According to Article 40 of Decree 125/2020/ND-CP, the regulations are as follows:

Time limit for execution of tax or invoice-related administrative penalty charge decisions

1. The time limit for execution of tax or invoice-related administrative penalty charge decisions is 1 year, commencing from the date the sanction decision is issued. If this time limit lapses without the tax authority delivering or sending the administrative violation decision to the violating organization or individual as stipulated in Article 39 of this Decree, the sanction decision shall not be executed.

In cases where the sanction decision imposes remedial measures, the remedial measures still apply.

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Thus, the time limit for execution of tax or invoice-related administrative penalty charge decisions is 1 year from the date the sanction decision is issued.

If this time limit lapses without the tax authority delivering or sending the administrative sanction decision to the violating organization or individual, the sanction decision shall not be executed.

What are cases of exceptions to tax or invoice-related administrative penalty charge decisions in Vietnam?

According to Article 38 of Decree 125/2020/ND-CP, the following cases of exceptions to tax or invoice-related administrative penalty charge decisions:

- Administrative sanction decisions for tax violations are not issued in the following cases:

+ Cases stipulated in Article 9 of Decree 125/2020/ND-CP, involving non-imposition of administrative sanctions for tax violations:

++ Non-imposition of administrative sanctions for tax violations in cases where administrative sanctions are not imposed according to legal regulations on handling administrative violations.

Taxpayers who delay tax procedures electronically due to technical system failures announced on the tax authority's electronic portal fall into cases of violations due to force majeure events as stipulated in clause 4, Article 11 of the Law on Administrative Violations 2012.

++ Non-imposition of administrative sanctions for tax violations, non-calculation of late payment fees for taxpayers violating tax-related regulations due to following guidance documents or decisions from the tax authority or other state authorities concerning the determination of taxpayers' tax obligations (including guiding documents, decisions issued before December 5, 2020), except in cases where tax audits or inspections at taxpayers' premises did not identify errors in tax declarations or determinations but later resulted in discovery of administrative tax violations by the taxpayer.

++ Non-imposition of administrative sanctions for incorrect tax declarations if the taxpayer has submitted an adjusted tax declaration and voluntarily paid the full amount of tax owed before the tax authority announces a tax audit or inspection decision at the taxpayer's premises, or before the tax authority discovers violations not through audits or inspections at the taxpayer's premises, or before detection by other competent authorities.

++ Non-imposition of administrative sanctions for procedural tax violations against individuals directly settling personal income tax refunds late in submitting personal income tax returns, where a tax refund is generated; business households, individual businesses subject to tax assessment as per Article 51 of the Law on Tax Administration 2019.

++ Non-imposition of sanctions for late submission of tax declaration forms during the period in which the taxpayer is granted an extension for submitting said tax declaration forms.

+ The subject of the tax administrative violation cannot be identified;

+ The time limit for administrative tax violation sanctions, as stipulated in Article 8 of Decree 125/2020/ND-CP, has expired or the deadline for issuing sanctions has passed according to the law on administrative violations;

+ Individuals liable for administrative tax violations have deceased or are missing; organizations have been dissolved or gone bankrupt during the period for considering sanctions, except where stipulated at point c, clause 4, Article 41 of Decree 125/2020/ND-CP.

The basis for determining deceased, missing individuals; dissolved or bankrupt organizations is according to clause 2, Article 41 of Decree 125/2020/ND-CP;

+ Transfer of case files with indications of criminal activity for prosecution.

- In cases of non-issuance of administrative sanction decisions as stipulated in points a, b, c, d, clause 1, Article 38 of Decree 125/2020/ND-CP, the competent authority shall not issue a sanction decision but must apply remedial measures as prescribed (if any).

The decision to apply remedial measures must specify the reasons for not issuing a decision on administrative sanctions; the remedial measures applied, responsibilities, and time limits for implementation.