What are the remedial measures of imposition of fines for tax or invoice-related administrative violations in Vietnam?

What are the remedial measures of imposition of fines for tax or invoice-related administrative violations in Vietnam?

Pursuant to Clause 3 Article 7 Decree 125/2020/ND-CP, the remedial measures of imposition of fines for tax or invoice-related administrative violations include:

(1) Compelling the payment of the full amount of unpaid taxes, tax amounts exempted, reduced, or refunded higher than prescribed, tax evasion amounts, and late payment fines into the state budget.

(2) Compelling adjustments to the loss, deductible input value-added tax to be carried forward.

(3) Compelling the submission of registration change documents; re-declaration and submission of additional documents in the tax dossier; submission of tax returns and annexes attached to tax returns; providing information.

(4) Compelling the implementation of invoice issuance procedures.

(5) Compelling the issuance of invoices as per regulations.

(6) Compelling the cancellation or destruction of invoices and printed products.

(7) Compelling the creation and submission of notifications and reports on invoices.

(8) Compelling the transfer of electronic invoice data.

(9) Compelling the repayment of illegal gains obtained from administrative violations.

What are the remedial measures of imposition of fines for tax or invoice-related administrative violations in Vietnam? (Image from the Internet)

What are exceptions to tax or invoice-related administrative penalties in Vietnam?

Pursuant to Article 9 Decree 125/2020/ND-CP, the following exceptions to tax or invoice-related administrative penalties:

- No administrative penalties are imposed for tax and invoice violations in cases where administrative penalties are not imposed according to the provisions of laws on the handling of administrative violations.

Taxpayers who are late in performing tax and invoice procedures by electronic means due to IT system errors announced on the electronic portal of the tax authority fall under the force majeure circumstances specified in Clause 4 Article 11 Law on Handling of Administrative Violations 2012.

- No administrative penalties are imposed for tax violations, and no late payment fines are calculated for taxpayers committing administrative tax violations due to following written instructions, handling decisions from tax authorities or competent state agencies regarding the determination of tax obligations of taxpayers (including guidance documents and handling decisions issued before Decree 125/2020/ND-CP took effect);

Except for cases where tax inspection and examination at the taxpayer’s office have not found errors in the taxpayer's declaration, determination of tax payable, or tax exempt, reduced, or refunded amounts, but later discovering the taxpayer’s administrative tax violations.

- No administrative penalties are imposed for tax violations in cases of false declarations where the taxpayer has supplemented tax returns and voluntarily paid the correct tax amount before the tax authority announces the tax inspection or examination decision at the taxpayer’s office, or before the tax authority discovers the violation without inspection or examination at the taxpayer’s office, or before other competent authorities discover it.

- No administrative penalties are imposed for tax procedure violations by individuals directly settling personal income tax who delay submitting personal income tax finalization dossiers that result in refundable tax amounts; business households, and individuals subject to tax determination as prescribed in Article 51 Law on Tax Administration 2019.

- No penalties are imposed for late submission of tax declaration dossiers within the extended submission period granted to taxpayers.

How long is the time limit for imposition of tax and invoice-related administrative violations?

Pursuant to Article 8 Decree 125/2020/ND-CP amended by Clause 1 Article 1 Decree 102/2021/ND-CP as follows:

Time limit for imposition of tax and invoice-related administrative violations; periods considered not to be penalized; tax recovery period

1. Time limit for sanctioning administrative violations regarding invoices

a) The time limit for penalizing administrative violations regarding invoices is 02 years.

b) The starting point of the time limit for penalizing administrative violations regarding invoices is prescribed as follows:

2. Time limit for sanctioning administrative violations regarding taxes

a) The time limit for penalizing tax procedure violations is 02 years from the date of the violation.

The date of committing administrative violations regarding tax procedures is the day following the end of the period in which tax procedures must be performed according to the law on tax administration, except in the following cases:

b) The time limit for penalizing tax evasion that does not amount to criminal liability, false declarations leading to tax underpayment, or increasing the exempted, reduced, or refunded tax amount is 05 years from the date of the violation.

...

the time limit for sanctioning administrative violations regarding taxes (tax procedure violations) and invoices is 02 years.

The time limit for sanctioning tax evasion that does not amount to criminal liability, false declarations leading to tax underpayment, or increasing the exempted, reduced, or refunded tax amount is 05 years.