What are penalties for failing to issue e-invoices upon sale of oil and gas in Vietnam?

What are penalties for failing to issue e-invoices upon sale of oil and gas in Vietnam?

Based on the regulations under Article 24 of Decree 125/2020/ND-CP regarding penalties for invoice issuance violations when selling goods and services, the following applies:

(1) A fine ranging from VND 500,000 to VND 1,500,000 for the following actions:

- Failure to issue a summary invoice as per the legal requirements for selling goods and providing services;

- Failure to issue invoices for goods and services used for promotions, advertisements, samples; goods, services given, gifted, exchanged, or rewarded to employees, excluding internal circulation of goods or internal consumption for continued production processes;

(2) A fine ranging from VND 3,000,000 to VND 5,000,000 for issuing invoices at the wrong time, not resulting in delays in tax duties;

(3) A fine ranging from VND 4,000,000 to VND 8,000,000 for:

- Issuing invoices at incorrect times;

- Issuing invoices not in descending order from small to large numbers;

- Issuing invoices dated prior to invoice purchase date;

- Issuing incorrect invoice types;

- Issuing e-invoices without a notification of approval from the tax authority or before the tax authority's acceptance of using e-invoices with or without tax codes;

- Issuing invoices for selling goods and services during the business suspension period;

- Issuing e-invoices from unconnected cash registers that do not transfer e-data;

(4) A fine ranging from VND 10,000,000 to VND 20,000,000 for not issuing an invoice when selling goods and providing services according to regulations;

- Remedial measures for failing to issue invoices include mandating invoice issuance as per regulations for actions specified in point d, clause 4, clause 5, Article 24 of Decree 125/2020/ND-CP when the buyer requests it.

Therefore, when retail fuel businesses do not issue e-invoices, the specific penalties will depend on the nature of the violation concerning invoice issuance as outlined above.

Additionally, the monetary penalty for not issuing invoices is the penalty applied to organizations. For the same administrative violation concerning invoices, the penalty for individuals is half the penalty for organizations (as stipulated in clause 5, Article 5 of Decree 125/2020/ND-CP and clause 4, Article 7 of Decree 125/2020/ND-CP.)

Also, the remedial measure for failing to issue invoices is to compel the issuance of invoices according to the regulations for actions specified at point d, clause 4, clause 5, Article 24 of Decree 125/2020/ND-CP when the buyer requests it.

Do e-invoices for sale of oil and gas in Vietnam include the buyer's TIN?

According to point c, clause 14, Article 10 of Decree 123/2020/ND-CP regarding invoice contents:

Invoice Contents

5. Name, address, and buyer's TIN

a) If the buyer is a business entity with a TIN, the name, address, and buyer's TIN shown on the invoice must match the enterprise registration certificate, branch operation registration certificate, household business registration certificate, taxpayer registration certificate, taxpayer code notification, investment registration certificate, and cooperative registration certificate.

If the name and address of the buyer are too long, the seller can abbreviate some commonly used terms on the invoice such as: "Ward" to "P"; "District" to "Q", "City" to "TP", "Vietnam" to "VN" or "Joint Stock" to "CP", "Limited Liability" to "TNHH", "industrial zone" to "KCN", "production" to "SX", "Branch" to "CN", but must ensure the full house number, street name, ward, commune, district, city, accurately determine the name and address of the enterprise, and comply with the enterprise's business registration and taxpayer registration.

b) If the buyer does not have a TIN, then the invoice does not need to include the buyer's TIN. For some specific cases in which goods and services are sold to individuals stipulated in clause 14 of this Article, the invoice does not require the name or address of the buyer. When selling products and services to foreign customers visiting Vietnam, buyer address details can be replaced with passport or entry-exit document details and the nationality of the foreign customer.

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14. Some cases of e-invoices do not need to have all content

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c) For e-invoices for sales at supermarkets or trade centers to non-business individual customers, the invoice does not necessarily have to include the buyer's name, address, or TIN.

For e-invoices for sale of oil and gas to non-business individual customers, it is not essential to include the invoice name, invoice form identification code, invoice code, invoice number; name, address, buyer's TIN, e-signature of the buyer; digital signature, e-signature of the seller, or VAT rate.

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Thus, regarding e-invoices for sale of oil and gas, it is not mandatory to include the buyer’s TIN if the buyer does not have one or if the buyer is a non-business individual. On the other hand, for buyers who are business entities with a TIN, the buyer’s TIN must be shown on the invoice.

What are regulations on application of e-invoice in the sale of oil and gas in Vietnam?

According to Article 91 of the Law on Tax Administration 2019:

Application of e-invoices when selling goods and providing services

1. Enterprises, economic organizations use e-invoices with codes from tax authorities when selling goods and providing services irrespective of the sales value, except in the cases provided in clause 2 and clause 4 of this Article.

2. Enterprises operating in electricity, fuel, postal and telecommunications, clean water, credit finance, insurance, healthcare, e-commerce, supermarkets, commercial services, transport (by air, road, sea, rail, and waterway), and those enterprises and economic organizations that have or will execute e-transactions with tax authorities, IT infrastructure, accounting software systems, and e-invoice software that meet the conditions for creating, retrieving e-invoices, storing e-invoice data as per regulations, and ensuring data transmission of e-invoices to buyers and tax authorities are permitted to use e-invoices without tax authority codes when selling goods or providing services, irrespective of sales transaction value, except in high tax risk cases as designated by the Minister of Finance and if registering to use e-invoices with codes from tax authorities.

3. Business households, individuals in circumstances defined in clause 5, Article 51 of this Law, and other cases where revenue can be determined when selling goods or services are required to use e-invoices with codes from tax authorities when selling goods and providing services.

4. Business households, individuals not meeting the conditions to use e-invoices with codes from tax authorities as stipulated in clauses 1 and 3 of this Article but require invoices to deliver to customers or in cases where enterprises, economic organizations, other organizations are granted e-invoices by tax authorities for issuance to customers are issued e-invoices with codes by tax authorities for each transaction and must declare and pay taxes before tax authorities issue e-invoices on a per-transaction basis.

sale of oil and gas that have or will engage in e-transactions with tax authorities, have established IT infrastructure, accounting software systems, and e-invoice issuance software that meet regulations for generating, querying e-invoices, storing e-invoice data, and ensuring the data transmission of e-invoices to buyers and tax authorities, are allowed to use e-invoices without codes from tax authorities when selling goods or providing services, irrespective of transaction value, except in cases classified as high risk in tax affairs as determined by the Minister of Finance and if they register to use e-invoices with codes from tax authorities.