What is the basis for issuing a enforcement decision on suspending use of invoices in Vietnam?
What is the basis for issuing a enforcement decision on suspending use of invoices in Vietnam?
According to Clause 2, Article 34 of Decree 126/2020/ND-CP, the basis for issuing a enforcement decision on suspending use of invoices is stipulated as follows:
Enforcement by suspending the use of invoices
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2. Basis for issuing a enforcement decision on suspending use of invoices:
a) Information about the invoices of the taxpayer subject to enforcement from the tax authority's database or the data of other agencies, organizations (if any).
b) Information about the situation of invoice usage provided by the taxpayer subject to enforcement and other related organizations or individuals (if any), as requested by the tax authority in circumstances where the database at the tax authority is not complete.
- enforcement decision on suspending use of invoices
a) The enforcement decision on suspending use of invoices is made according to Form No. 04/CC in Appendix III issued together with this Decree, accompanied by a notice to stop using invoices according to Form No. 04-1/CC in Appendix III issued together with this Decree.
a.1) In the enforcement decision on suspending use of invoices, it is necessary to clearly state: The basis for issuing the decision to coerce; name, address, tax code of the taxpayer subject to enforcement; reason for enforcement; amount of money being coerced.
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According to the above regulation, the basis for issuing a enforcement decision on suspending use of invoices includes:
- Information about the invoices of the taxpayer subject to enforcement from the tax authority's database or the data of other agencies, organizations (if any).
- Information about the situation of invoice usage provided by the taxpayer subject to enforcement and other related organizations or individuals (if any), as requested by the tax authority in circumstances where the database at the tax authority is not complete.
What is the basis for issuing a enforcement decision on suspending use of invoices in Vietnam? (Image from the Internet)
What is the procedure for applying the enforcement by suspending use of invoices in Vietnam?
According to Clause 4, Article 34 of Decree 126/2020/ND-CP, the procedure for applying the enforcement by suspending use of invoices is carried out in the following sequence:
- On the same day the enforcement decision is issued, the tax authority must post the enforcement decision and the notice to stop using invoices on the tax sector's electronic information page or publish it in mass media within 24 hours from the issuance of the decision.
- During the implementation of this coercive measure, the tax authority will not accept invoice issuance notification dossiers from organizations or individuals being coerced, will not grant codes for e-invoices with tax authority codes, will not issue invoices, and will not sell invoices to taxpayers being coerced (except as stipulated in point d, clause 4, Article 34 of Decree 126/2020/ND-CP).
- The tax authority issues a decision to terminate the application of this coercive measure accompanied by a notice to continue using invoices according to Form No. 04-2/CC in Appendix III issued together with Decree 126/2020/ND-CP. On the same day the decision to terminate the enforcement by suspending use of invoices is issued, the tax authority must publish it on the tax sector's electronic information page or in mass media within 24 hours from the issuance of the decision.
- In cases where the enforcement by suspending use of invoices is being applied and the taxpayer submits a request to use invoices for wage payment to workers, payment of costs ensuring continuous production and business, the tax authority allows the taxpayer to continue using invoices on a per-transaction basis, provided that the taxpayer immediately pays at least 18% of the revenue from the invoices to the state budget.
Who has the authority to decide on applying the enforcement by suspending use of invoices in Vietnam?
According to Article 126 of the Tax Administration Law 2019:
Authority to decide enforcement in the execution of administrative decisions on tax management
- The head of the tax administration authority, the Director General of the Anti-Smuggling Investigation Department under the General Department of Customs, the Director General of the Post-Clearance Audit Department has the authority to issue decisions to apply coercive measures in executing administrative decisions on tax management as stipulated in points a, b, c, d, đ, and e, clause 1, Article 125 of this Law.
- The revocation of enterprise registration certificates, business registration certificates, cooperative registration certificates, investment registration certificates, establishment and operation licenses, and practice licenses stipulated at point g, clause 1, Article 125 of this Law shall be carried out according to legal provisions.
In addition, Clause 1, Article 125 of the Tax Administration Law 2019 stipulates:
Coercive measures in executing administrative decisions on tax management
- Coercive measures in executing administrative decisions on tax management include:
a) Deducting money from the account of the entity subject to enforcement in executing administrative decisions on tax management at the State Treasury, commercial banks, or other credit institutions; freezing accounts;
b) Deducting part of wages or income;
c) Halting customs procedures for export and import goods;
d) suspending the use of invoices;
dd) Seizing and auctioning assets according to legal provisions;
e) Collecting money or other assets of the entity subject to enforcement in the execution of administrative decisions on tax management held by other agencies, organizations, or individuals;
g) Revoking certificates of enterprise registration, business registration, cooperative registration, investment registration, establishment, and operation licenses, and practice licenses.
Hence, according to these two regulations, the authority to decide on applying the enforcement by suspending use of invoices rests with the Head of the tax administration authority, the Director General of the Anti-Smuggling Investigation Department under the General Department of Customs, and the Director General of the Post-Clearance Audit Department.
