What are the acts of using illegal invoices and evidencing documents in Vietnam?
What are the acts of using illegal invoices and evidencing documents in Vietnam?
The acts of using illegal invoices and evidencing documents are those stipulated in Article 4 of Decree 125/2020/ND-CP including:
- Fake invoices and evidencing documents;
- Invoices and evidencing documents that are not yet valid for use or have expired in terms of usage;
- Invoices that have been suspended from use during the enforcement duration of suspension, except when permitted by the tax authorities;
- Electronic invoices not registered with the tax authorities;
- Electronic invoices without tax authority codes when such codes are required;
- Invoices for purchased goods and services with creation dates after tax authorities have determined that the seller does not operate at the registered business address;
- Invoices and evidencing documents for purchased goods and services with creation dates before the determination date that the issuer does not operate at the registered business address, or without the notification from tax authorities, particularly if there is already a conclusion from tax, police, or other functional agencies that these invoices or evidencing documents are illegal.
What are the acts of using illegal invoices and evidencing documents in Vietnam? (Image from Internet)
What are administrative fines for the acts of using illegal invoices and evidencing documents in Vietnam?
Based on Article 7, Article 16, Article 17, Article 28 of Decree 125/2020/ND-CP, the administrative fines for the acts of using illegal invoices and evidencing documents are as follows:
(1) A fine of 20% of the understated tax amount or the tax exempted, reduced, or refunded higher than the regulation when using illegal invoices and evidencing documents to account for the value of goods and services purchased, reducing the payable tax amount or increasing the refunded, exempted, or reduced tax amount. If discovered during tax inspection, the buyer proves the fault belongs to the seller and the buyer has fully accounted according to the regulations.
| Remedial measures: - Must pay the full amount of the understated tax, the over-refunded, exempted, or reduced tax amount, and late payment interest into the state budget. If the time limit for penalty has expired, the taxpayer is not subject to the above penalties but must still pay the due amount and late payment interest into the state budget. - Must adjust losses, deductible VAT input transferred to subsequent durations (if any). |
(2) Using illegal invoices or evidencing documents to declare tax, reducing payable tax or increasing the refunded, exempted, or reduced tax amount:
+ A fine equal to 1 times the amount of evaded tax for taxpayers with at least one mitigating circumstance.
+ A fine equal to 1.5 times the amount of evaded tax for taxpayers with no aggravating or mitigating circumstances.
+ A fine equal to 2 times the amount of evaded tax for taxpayers with one aggravating circumstance.
+ A fine equal to 2.5 times the amount of evaded tax for taxpayers with two aggravating circumstances.
+ A fine equal to 3 times the amount of evaded tax for taxpayers with three or more aggravating circumstances.
| Remedial measures: - Must pay the full amount of evaded tax into the state budget. If the tax evasion acts exceed the time limit for penalty, the taxpayer is not penalized but must pay the evaded tax and the late payment interest into the state budget as per regulations. - Must adjust losses, deductible VAT input on tax filings (if any) for the acts specified in Clauses 1, 2, 3, 4, 5 of this Article. |
(3) The acts of using illegal invoices excluding (1) and (2) will be fined from VND 20,000,000 to VND 50,000,000. In addition to fines, the violator must cancel the used invoices.
(4) The acts of using illegal evidencing documents as specified in (2) for tax declaration, reducing payable tax, or increasing refunded, exempted, or reduced tax, found after the tax filing duration but not reducing payable tax or not increasing refundable tax, will be subject to administrative fines as follows:
A fine ranging from VND 5,000,000 to VND 8,000,000 for organizations;
A fine ranging from VND 2,500,000 to VND 4,000,000 for individuals, households, and business households.
What is the time limits for imposition of administrative penalties related to invoices in Vietnam?
Based on Article 8 of Decree 125/2020/ND-CP as amended by Clause 1 Article 1 of Decree 102/2021/ND-CP:
Time limits for imposition of administrative penalties related to tax, invoices; the duration considered as not penalized; the duration for tax collection.
1. time limits for imposition of administrative penalties related to invoices
a) The time limits for imposition of administrative penalties related to invoices is 02 years.
b) The counting time for the time limits for imposition of administrative penalties related to invoices is stipulated as follows:
...
The time limits for imposition of administrative penalties related to invoices is 02 years.
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