What are penalties for issuance of invoices at the wrong time in Vietnam?

What are penalties for issuance of invoices at the wrong time in Vietnam?

Based on Article 24 of Decree 125/2020/ND-CP, which stipulates penalties for violations in the issuance of invoices when selling goods or services, depending on the severity of the violation, businesses that issue invoices at the wrong time will be penalized as follows:

Note: The above-mentioned fines apply to organizations, in cases of individual violations, the fine is half of that for organizations.

What are penalties for issuance of invoices at the wrong time in Vietnam? (Image from Internet)

What is the time limits for imposition of invoice-related administrative violations?

Based on Article 8 of Decree 125/2020/ND-CP (amended by Clause 1 Article 1 Decree 102/2021/ND-CP) it is stipulated as follows:

Time limits for imposition of administrative penalties on tax and invoices; timeframe considered as not being penalized; tax reassessment period

1. time limits for imposition of administrative penalties on invoices

a) The time limits for imposition of administrative penalties on invoices is 02 years.

b) The starting point for calculating the time limits for imposition of administrative penalties on invoices is defined as follows:

For ongoing administrative violations as specified in Point c of this Clause, the statute of limitations is calculated from the date the competent authority performs the detection of the violation.

For completed administrative violations as specified in Point d of this Clause, the statute of limitations is calculated from the date the violation ceases.

...

The time limits for imposition of administrative penalties on invoices is 02 years.

Is issuing invoices separately allowed when a business suspends operation in Vietnam?

Based on Clause 2 Article 13 of Decree 123/2020/ND-CP which regulates the issuance and declaration for determining tax obligations when tax authorities issue authenticated e-invoices separately as follows:

Application of e-invoices when selling goods and providing services

...

2. Regulations on issuance and declaration to determine tax obligations when tax authorities issue authenticated e-invoicess per occurrence are as follows:

a) Type of invoices issued per occurrence

a.1) The issuance of authenticated e-invoices per occurrence for sales invoices in the following cases:

- Households, individuals conducting business per the provisions in Clause 4 Article 91 of the Law on Tax Management No. 38/2019/QH14 do not meet the conditions to use authenticated e-invoicess but require invoices for customer delivery;

- Organizations not engaged in business but have sales transactions;

- Enterprises post dissolution, bankruptcy, tax code deactivation but need to liquidate assets and require invoices for buyers;

- Enterprises, economic organizations, households, individuals in business that pay VAT by the direct method in the following scenarios:

+ Cease business activities but haven't completed tax code deactivation procedures need to liquidate assets and require invoices for buyers;

+ Temporarily cease business operations and require invoices for customers to fulfill pre-notification contracts by tax authorities;

+ Compelled by tax authorities to stop using invoices.

a.2) The issuance of authenticated e-invoices per occurrence for VAT invoices in the following cases:

- Enterprises, economic organizations, and other organizations pay VAT by the deduction method in the following scenarios:

+ Cease business activities but haven't completed tax code deactivation procedures need to liquidate assets and require invoices for buyers;

+ Temporarily cease business operations and require invoices for customers to fulfill pre-notification contracts by tax authorities;

+ Compelled by tax authorities to stop using invoices.

- Organizations, state agencies not subject to VAT by deduction method hold asset auctions, where auction price includes VAT clearly stated in the auction dossier approved by competent authorities then VAT invoices can be issued to buyers.

...

In cases where businesses temporarily cease operations and require invoices for customers to fulfill pre-notification contracts by tax authorities, invoices can be issued per occurrence. To be specific:

- Enterprises under the category paying VAT by the direct method are issued authenticated e-invoicess per occurrence as sales invoices.

- Enterprises under the category paying VAT by the deduction method are issued authenticated e-invoicess per occurrence as VAT invoices.