What is enforcement by suspension of use of invoices? When is a taxpayer subject to enforcement by suspension of use of invoices in Vietnam?

What is enforcement by suspension of use of invoices? When is a taxpayer subject to enforcement by suspension of use of invoices in Vietnam?

Enforcement by suspension of use of invoices is the term commonly used to describe the tax authority's enforcement measures of suspension of use of invoices for taxpayers who violate the law.

According to Clause 1, Article 34 of Decree 126/2020/ND-CP, enforcement by suspension of use of invoices is applied in the following cases:

(1) Taxpayers are subject to enforcement of administrative decisions on tax management, and other enforcement measures specified at points a, b, c, Clause 1, Article 125 of Law on Tax administration 2019 do not apply, specifically including the following measures:

- Deductions from the accounts of the entity subject to enforcement of the administrative decision on tax management at the State Treasury, commercial banks, or other credit institutions; account freezing;

- Deduction from a portion of wages or income;

- Suspension of customs procedures for exported and imported goods;

(2) The measures specified at points a, b, c, Clause 1, Article 125 of the Law on Tax administration 2019 have been applied, but the tax debt has still not been fully collected into the state budget, or in the case specified in Clause 3, Article 125 of the Law on Tax administration 2019 or upon the request of the customs authority.

What is enforcement by suspension of use of invoices? When is a taxpayer subject to enforcement by suspension of use of invoices in Vietnam? (Image from the Internet)

Vietnam: How long is the tax enforcement decision by suspension of use of invoices effective?

Based on Article 127 of the Law on Tax administration 2019, the regulation is as follows:

Administrative Decision Enforcement Order on Tax Management

1. The administrative decision enforcement order on tax management includes the following main contents:

a) Date, month, year of decision issuance;

b) Basis for issuing the decision;

c) Person issuing the decision;

d) Name, address, tax code of the taxpayer subject to enforcement of the administrative decision on tax management;

e) Reason for enforcing the administrative decision on tax management;

f) Enforcement measures for the administrative decision on tax management;

g) Time and place of implementation;

h) Leading agency, coordinating agencies for implementing the enforcement of the administrative decision on tax management.

2. The enforcement decision for the administrative decision on tax management must be sent to the entity subject to enforcement, the immediate superior tax authority, and relevant organizations and individuals. If conditions for electronic transactions in the field of tax management are met, the enforcement decision must be sent electronically and updated on the tax authority's electronic portal. If enforced by the measure specified at point d, Clause 1, Article 125 of this Law, the enforcement decision must be sent to the Chairman of the commune-level People's Committee where the enforcement of the administrative decision on tax management is carried out before implementation.

3. The enforcement decision is effective for 1 year from the date of issuance; if enforced by measures of deductions from accounts, account freezing, the decision is effective for 30 days from the date of issuance.

Therefore, the tax enforcement decision is effective for 1 year from the date of issuance.

Who has the authority to decide on enforcement measures by suspension of use of invoices in Vietnam?

According to point d, Clause 1, Article 125 of the Law on Tax administration 2019, the regulation is as follows:

Enforcement Measures for Administrative Decisions on Tax Management

1. Enforcement measures for administrative decisions on tax management include:

a) Deductions from the accounts of entities subject to enforcement of the administrative decision on tax management at the State Treasury, commercial banks, or other credit institutions; account freezing;

b) Deduction from a portion of wages or income;

c) Suspension of customs procedures for exported and imported goods;

d) Suspension of the use of invoices;

...

According to Clause 1, Article 126 of the Law on Tax administration 2019, the regulation is as follows:

Authority to Decide on Enforcement of Administrative Decisions on Tax Management

1. The head of the tax management authority, the Director of the Anti-Smuggling Department under the General Department of Customs, the Director of the Post-Clearance Audit Department have the authority to issue enforcement decisions for administrative decisions on tax management as stipulated at points a, b, c, d, e of Clause 1, Article 125 of this Law.

...

Thus, the head of the tax management authority, the Director of the Anti-Smuggling Department under the General Department of Customs, and the Director of the Post-Clearance Audit Department have the authority to issue enforcement measures by suspension of use of invoices.