What are the two main main sanctioning forms for administrative violations against the regulations on taxation and invoices in Vietnam?

What are the two main sanctioning forms for administrative violations against the regulations on taxation and invoices in Vietnam?

Under Clause 1, Article 7 Decree 125/2020/ND-CP, the two main sanctioning forms for administrative violations against the regulations on taxation and invoices include Cautions and fines:

(1) Cautions

Cautions shall apply to violations arising from implementation of tax or invoice-related procedures which are not serious, are committed under mitigating circumstances and are classified as those subject to cautions under this Decree.

(2) Fines

Fines not greater than VND 100,000,000 shall be imposed on entities committing invoice-related violations. Fines not greater than VND 50.000.000 shall be imposed on entities committing invoice-related violations.

Fines not greater than VND 200,000,000 shall be imposed on taxpayers that are entities committing tax-related violations. Fines not greater than VND 100,000,000 shall be imposed on taxpayers that are persons committing tax-related violations.

A fine which equals 20% of the underpaid tax amount or the higher-than-prescribed amount of tax exemption, reduction or refund shall be imposed for any violation arising from the act of false declaration leading to the underpayment of tax amount or the increase in the amount of tax exemption, reduction or refund.

A fine which is 1 or 3 times as much as the evaded tax amount shall be imposed for any tax evasion act.

Fines equaling the amounts of tax, the deferred amounts of tax or the fines not paid into the state budget (minus minimum balances of demand accounts subject to regulations of commercial banks providing fiduciary payment services for taxpayers) shall be imposed upon commercial banks defaulting on liabilities to withdraw money from taxpayer's accounts to pay into the state budget’s accounts upon tax authority’s request, except when taxpayer’s accounts opened at these commercial banks have zero balance, or all balance has been left zero due to the remittance of all money left in taxpayer’s accounts to the state budget's accounts if such remittance is not sufficient to pay off all taxes owed by the taxpayer.

What are the two main sanctioning forms for administrative violations against the regulations on taxation and invoices in Vietnam? (Image from the Internet)

What are the main penalties for violations against regulations on taxpayer registration deadlines in Vietnam?

Pursuant to Article 10 Decree 125/2020/ND-CP, the main penalties for violations against regulations on taxpayer registration deadlines in Vietnam are regulated as follows:

(1) Penalties imposed in form of cautions shall be imposed for violations arising from making taxpayer registration; notifying the temporary business suspension; notifying the premature business continuation from 1 to 10 days after expiration of the prescribed time limits under mitigating circumstances.

(2) Fines ranging from VND 1,000,000 to VND 2,000,000 shall be imposed for one of the following violations:

- Making taxpayer registration; notifying the premature business continuation from 1 to 30 days after expiration of the prescribed time limits, except the cases prescribed in (1);

- Notifying the temporary business suspension after expiration of the time limits, except the cases prescribed in clause 1 of this Article;

- Failing to notify the temporary business suspension.

(3) Fines ranging from VND 3,000,000 to VND 6,000,000 shall be imposed for violations arising from making taxpayer registration; notifying the premature business continuation from 31 to 90 days after expiration of the prescribed time limits.

(4) Fines ranging from VND 6,000,000 to VND 10,000,000 shall be imposed for one of the following violations:

- Making taxpayer registration; notifying the premature business continuation from at least 91 days after expiration of the prescribed time limits;

- Failing to notify the premature business continuation without any more taxes incurred.

What is the prescriptive time limit for imposing administrative penalties regarding invoices in Vietnam?

Under Article 8 of Decree 125/2020/ND-CP (amended by Clause 1, Article 1 of Decree 102/2021/ND-CP), the regulation is as follows:

prescriptive 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. prescriptive time limits for imposition of invoice-related administrative penalties

a) The prescriptive time limit for imposition of an invoice-related administrative penalty shall be 02 years.

b) Start dates of prescriptive time limits for imposition of invoice-related administrative penalties shall be regulated as follows:

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2. prescriptive time limits for imposition of tax-related administrative penalties

a) prescriptive time limit for imposition of penalties for administrative violations against regulations on tax-related procedures shall be 02 years from the date of commission of these violations.

The date of commission of an administrative violation against regulations on tax procedures shall be the date succeeding the statutory deadline for completion of regulatory tax-related procedures under laws on tax administration, except the following cases:

b) prescriptive time limit for imposition of administrative penalties for the act of tax evasion committed not to the extent that a criminal action is brought, or the act of making false declarations leading to the underpaid tax amount or the increased amount of tax exemption, reduction or refund, shall be 05 years from the date of commission of any of such acts.

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The prescriptive time limit for administrative penalties regarding invoices is 02 years.

The prescriptive time limit for imposition of an invoice-related administrative penalty shall be 02 years. The prescriptive time limit for imposition of administrative penalties for the act of tax evasion committed not to the extent that criminal action is brought, or the act of making false declarations leading to the underpaid tax amount or the increased amount of tax exemption, reduction or refund, shall be 05 years from the date of commission of any of such acts.