What is the penalty for failing to issue invoices for goods used for advertising in Vietnam?

What is the penalty for failing to issue invoices for goods used for advertising in Vietnam?

Pursuant to point b, clause 2, Article 24 of Decree 125/2020/ND-CP, regulations on issuing invoices when selling goods and services are as follows:

Penalties for violations of regulations on issuing invoices when selling goods and services

1. A warning is issued for any of the following acts:

a) Issuing invoices at the incorrect time but not resulting in a delay in tax obligations and there are mitigating circumstances;

b) Issuing invoices consecutively from smaller to larger numbers but using different books (using a book with a larger serial number without using a book with a smaller serial number) and after discovery, the organization or individual cancels the books with smaller serial numbers;

c) Issuing the wrong type of invoice according to regulations given to the buyer or declared for tax purposes, and the buyer and seller discover the wrong type and reissue the correct type before the competent authority announces the decision on inspection or examination at the taxpayer's headquarters and it does not affect the determination of tax obligations.

2. A fine ranging from 500,000 VND to 1,500,000 VND for any of the following acts:

a) Not issuing a summary invoice in accordance with the regulations on sales invoices, service provision.

b) Not issuing invoices for goods or services used for promotion, advertising, samples; goods or services given, presented, gifted, exchanged, or used to pay salaries to employees, except for internally circulated goods or internal consumption to continue the production process.

3. A fine ranging from 3,000,000 VND to 5,000,000 VND for issuing invoices at the incorrect time, which does not lead to a delay in tax obligations, except as specified in point a, clause 1 of this Article.

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Thus, it can be seen that for the act of not issuing invoices for goods used for advertising, a fine ranging from 500,000 VND to 1,500,000 VND can be imposed.

What is the penalty for failing to issue invoices for goods used for advertising in Vietnam? (Image from the Internet)

Is there a distinction in the value of goods when issuing invoices for selling goods in Vietnam?

According to Article 90 of the Law on Tax Administration 2019, the following is stipulated:

Principles of issuing, managing, and using electronic invoices

1. When selling goods or providing services, the seller must issue an electronic invoice to give to the buyer according to the standard data format and must fully record the contents as prescribed by the law on tax and accounting, without distinguishing the value of each sale or service provision.

2. In cases where the seller uses a cash register, the seller registers to use an electronic invoice created from the cash register with a connection to transfer electronic data to the tax authorities.

3. The registration, management, and use of electronic invoices in transactions for selling goods and providing services must comply with the laws on electronic transactions, accounting, and tax.

4. The issuance of tax authority codes on electronic invoices is based on the information provided by enterprises, economic organizations, other organizations, business households, and individual businesses on the invoice. Enterprises, economic organizations, other organizations, business households, and individual businesses are responsible for the accuracy of the information on the invoice.

5. The Government of Vietnam provides detailed regulations for this Article.

Thus, according to the above regulation, there is no distinction in the value of each sale or service provision.

When is the invoice issued in case of multiple deliveries in Vietnam?

According to Article 9 of Decree 123/2020/ND-CP, the following is stipulated:

Time of invoice issuance

1. The time of invoice issuance for the sale of goods (including state asset sales, confiscated assets, assets contributed to the national treasury, and sales of national reserves) is the time of transfer of ownership or use rights to the buyer, regardless of whether payment has been received.

2. The time of invoice issuance for the provision of services is the time of completion of the service provision, regardless of whether payment has been received. In cases where the service provider collects money in advance or during the service provision, the time of invoice issuance is the time of money collection (excluding the case of collection for deposits or advances to ensure the performance of service provision contracts such as accounting, auditing, financial consultancy, tax; appraisal; survey, technical design; supervision consultancy; project investment construction).

3. In cases where multiple deliveries or handovers occur for each item, phase, or stage of service, an invoice must be issued for the respective quantity and value of goods or services delivered each time.

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Thus, according to the above regulation, in the case of multiple deliveries, the time of invoice issuance is each time goods or services are delivered, with an invoice issued for the respective quantity and value.