What are the penalties for failing to destroy invoices in Vietnam?
What are the penalties for failing to destroy invoices in Vietnam?
According to Clause 3, Article 27 of Decree 125/2020/ND-CP regarding penalties for violations of the regulations on canceling or destroying invoices, it is stipulated as follows:
Penalties for violations of regulations on canceling, destroying invoices
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3. A fine ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following acts:
a) Canceling, destroying invoices past the deadline of 11 working days or more, from the due date for canceling, destroying invoices as regulated;
b) Failing to cancel, failing to destroy invoices according to the legal regulations;
c) Failing to cancel electronic invoices upon making errors after the deadline set by the tax authority for notifying the seller of the errors, mistakes;
d) Failing to cancel printed invoices that have not been issued but are no longer in use according to regulations;
dd) Canceling, destroying invoices not in accordance with the sequence, procedures as prescribed by law;
e) Destroying invoices not in accordance with the conditions required for destruction as stipulated.
4. Remedial measures: Mandatory cancellation, destruction of invoices for the acts stipulated in point b clause 2, points b, c, d clause 3 of this Article.
Thus, failing to carry out the destruction of invoices as per the regulations may result in administrative penalties with fines ranging from VND 4,000,000 to VND 8,000,000.
Additionally, the violator must take remedial measures by being compelled to cancel or destroy the invoices.
Note: The mentioned fines apply to organizations. For taxpayers who are households, business households, the fines are applied similarly to individuals (based on Clause 4, Article 7 of Decree 125/2020/ND-CP).
What are the penalties for failing to destroy invoices in Vietnam? (Image from Internet)
When shall tax authority-ordered printed invoices be destroyed in Vietnam?
According to Clause 1, Article 27 of Decree 123/2020/ND-CP, the stipulations are as follows:
Destruction of tax authority-ordered printed invoices
1. Enterprises, economic organizations, households, and individual businesses with invoices that are no longer used must destroy them. The deadline for destruction is at the latest 30 days from the date of notification to the tax authority. In the case where the tax authority has notified that invoices have lost their validity (except for cases notified due to enforcement of tax debt measures), enterprises, economic organizations, households, and individual businesses must destroy the invoices. The destruction deadline is at the latest 10 days from the date the tax authority announces the invalidity or from the date when the lost invoices are retrieved.
Invoices already made by accounting units are destroyed according to the legal accounting regulations.
Invoices not yet made but are evidence in legal cases are not destroyed but are handled according to the legal provisions.
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Thus, according to the above regulations, enterprises, economic organizations, households, and individual businesses with invoices that are no longer in use must carry out the destruction of those invoices.
What does the application for destroying tax authority-ordered printed invoices include?
According to Clause 2, Article 27 of Decree 123/2020/ND-CP, it is prescribed as follows:
Destruction of tax authority-ordered printed invoices
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2. Destruction of invoices by enterprises, economic organizations, households, and individual businesses is conducted as follows:
a) Enterprises, economic organizations, households, individual businesses must prepare an inventory list of invoices to be destroyed.
b) Enterprises, economic organizations must establish an Invoice Destruction Council. This Council must include representatives from leadership and accounting departments of the organization. Households, individual businesses are not required to establish a Council for destroying invoices.
c) Members of the Invoice Destruction Council must sign the invoice destruction minutes and will be held legally responsible for any mistakes.
d) The destruction application includes*:*
- Decision on the establishment of the Invoice Destruction Council, except in the case of households, individual businesses;
- Inventory list of invoices to be destroyed detailing: invoice name, invoice model symbol, invoice symbol, quantity of invoices to be destroyed (from number... to number... or detail each invoice number if the numbers are not continuous);
- Invoice destruction minutes;
- Notification of invoice destruction results must contain: type, symbol, number of invoices destroyed from number… to number, reason for destruction, date and time of destruction, destruction method according to Form No. 02/HUY-HDG Appendix IA issued with this Decree.
The application for destroying invoices is stored at the enterprise, economic organization, household, individual business using the invoices. Specifically, the Notification of destruction results must be made in 2 copies, one retained, and one sent to the managing tax authority no later than 5 days from the date the invoice destruction is carried out.
3. Destruction of invoices by the tax authority
a) The Tax Authority conducts the destruction of invoices printed by the Tax Office which have been announced but not sold or issued yet but will not continue to be used.
b) The General Department of Taxation is responsible for stipulating the process of destroying invoices printed by the Tax Office.
The application for destroying tax authority-ordered printed invoices includes:
- Decision on the establishment of the Invoice Destruction Council, except in the case of households, individual businesses;
- Inventory list of invoices to be destroyed detailing: invoice name, invoice model symbol, invoice symbol, quantity of invoices to be destroyed;
- Invoice destruction minutes;
- Notification of invoice destruction results must contain: type, symbol, number of invoices destroyed from number… to number, reason for destruction, date and time of destruction, destruction method.
