What are the penalties for violations against regulations on release of invoices in Vietnam?

What are the penalties for violations against regulations on release of invoices in Vietnam?

According to Article 23 of Decree 125/2020/ND-CP, penalties for violations against regulations on release of invoices in Vietnam are stipulated as follows:

Penalties for violations against regulations on release of invoices

1. Fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for one of the following violations:

a) Submitting notices of modification of information contained in notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, from 10 to 20 days after the date on which invoices start being used at new addresses, or newly-named invoices start being used;

b) Submitting statements of unused invoices to receiving tax authorities in case of any change of business address entailing any change to such tax authorities for a period from 10 to 20 days after the prescribed submission deadline which starts from the date on which invoices are used at their new addresses;

c) Using invoices mentioned in notices of invoice release sent to tax authorities though they are not due for use.

2. Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for one of the following violations:

a) Issuing notices of invoice release whose contents have been found as incomplete as those prescribed in regulations by tax authorities, and informing entities or persons in writing of this to request necessary modifications to be made if these entities or persons issue invoices to their clients even when failing to comply with the written notices requesting such modifications;

b) Failing in the posting of invoice release as required by laws;

c) Submitting the notices of revision of information contained in the notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, for the period of at least 21 days after the prescribed submission deadline which begins on the date on which invoices start being used at new addresses, or newly-named invoices start being used;

d) Submitting statements of unused invoices to new receiving tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities for a period from 10 to 20 days after the prescribed submission deadline which begins from the date on which invoices start being used at new addresses.

3. Fines ranging from VND 6,000,000 to VND 18,000,000 shall be imposed for any act of failing to make notices of release of invoices before use if these invoices are connected with economic transactions that arise, and on which taxes have been declared or paid, or to which tax declaration or payment obligations have not yet been due as per laws.

In cases where notices of release of invoices have not yet been issued before these invoices start being used, and these invoices are not connected with economic transactions arising or on which taxes have not yet been declared after the prescribed tax declaration or payment due dates, violators shall be subject to penalties prescribed in Article 28 herein or Article 16 and 17 of Chapter II herein.

4. Remedies: Compelling the implementation of the statutory procedures for release of invoices with respect to the acts specified in clause 2 and 3 of this Article.

And according to Clause 5 Article 5 of Decree 125/2020/ND-CP:

Sanctioning principles

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5. For a tax or invoice-related administrative violation, if an entity commits such violation, they must be fined two times as much as the amount of penalty imposed on persons, except the amounts of penalty for the acts prescribed in Articles 16, 17 and 18 herein.

And according to Clause 4 Article 7 of Decree 125/2020/ND-CP:

Sanctioning forms, remedies and principles of imposition of fines for tax or invoice-related administrative violations

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4. Principles of determination of fine amounts

a) The fine amounts specified in Article 10, 11, 12, 13, 14 and 15; clause 1 and 2 of Article 19; and Chapter III herein, shall be those applied to violating entities.

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Thus, the penalties for violations against regulations on release of invoices in Vietnam are as follows:

* Fines:

- Fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for one of the following violations:

+ Submitting notices of modification of information contained in notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, from 10 to 20 days after the date on which invoices start being used at new addresses, or newly-named invoices start being used;

+ Submitting statements of unused invoices to receiving tax authorities in case of any change of business address entailing any change to such tax authorities for a period from 10 to 20 days after the prescribed submission deadline which starts from the date on which invoices are used at their new addresses;

+ Using invoices mentioned in notices of invoice release sent to tax authorities though they are not due for use.

- Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for one of the following violations:

+ Issuing notices of invoice release whose contents have been found as incomplete as those prescribed in regulations by tax authorities, and informing entities or persons in writing of this to request necessary modifications to be made if these entities or persons issue invoices to their clients even when failing to comply with the written notices requesting such modifications;

+ Failing in the posting of invoice release as required by laws;

+ Submitting the notices of revision of information contained in the notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, for the period of at least 21 days after the prescribed submission deadline which begins on the date on which invoices start being used at new addresses, or newly-named invoices start being used;

+ Submitting statements of unused invoices to new receiving tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities for a period from 10 to 20 days after the prescribed submission deadline which begins from the date on which invoices start being used at new addresses.

- Fines ranging from VND 6,000,000 to VND 18,000,000 shall be imposed for any act of failing to make notices of release of invoices before use if these invoices are connected with economic transactions that arise, and on which taxes have been declared or paid, or to which tax declaration or payment obligations have not yet been due as per laws.

In cases where notices of release of invoices have not yet been issued before these invoices start being used, and these invoices are not connected with economic transactions arising or on which taxes have not yet been declared after the prescribed tax declaration or payment due dates, violators shall be subject to penalties prescribed in Article 28 of Decree 125/2020/ND-CP or Article 16 and 17 of Chapter II of Decree 125/2020/ND-CP.

* Remedies: Compelling the implementation of the statutory procedures for release of invoices with respect to the acts specified in clause 2 and 3 of Article 23 of Decree 125/2020/ND-CP.

What are the penalties for violations against regulations on release of invoices in Vietnam? (Image from Internet)

After how long will sanctioned entities be considered that they have not been subject to any administrative penalty for violations against regulations on release of invoices from the date of the completed execution of the decision to impose a penalty for such violations?

According to Clause 5 Article 8 of Decree 125/2020/ND-CP:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

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5. Duration for considering none of penalties for tax or invoice-related administrative violations is imposed

If sanctioned entities or persons do not commit repeat violations within 06 months from the date of the completed execution of the decision to impose a penalty in form of a caution or within 01 year from the completed execution of other administrative penalty decisions, or after the expiry date of the time limit for execution of penalty decisions, it shall be considered that they have not been subject to any administrative penalty for such violations.

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Thus, after 01 year from the completion of the administrative penalty decision, if organizations and individuals penalized do not re-offend, they will be considered as not penalized for the administrative violation of invoice issuance regulations.

What is the time limit for the imposition of administrative penalties for violations against regulations on release of invoices in Vietnam?

According to Clause 1 Article 8 of Decree 125/2020/ND-CP, amended by Clause 1 Article 1 of Decree 102/2021/ND-CP, it is stipulated:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

1. Time limits for imposition of invoice-related administrative penalties

a) Time limit for imposition of an invoice-related administrative penalty shall be 01 year.

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Thus, he time limit for the imposition of administrative penalties for violations against regulations on release of invoices in Vietnam is 02 years.