What is the penalty for failing to issue invoices when selling goods or providing services in Vietnam in 2025?

What are cases where a seller is not required to issue an invoice when selling goods or providing services in Vietnam?

Based on Clause 1, Article 4 of Decree 123/2020/ND-CP, it is stipulated that when selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods or services are used for promotion, advertising, samples; goods or services are given, gifted, donated, exchanged, or used as a substitute for employee wages, and internal consumption (excluding internally transferred goods to continue the production process); export of goods in the forms of lending, borrowing, or returning goods) and must fully record the contents as specified in Article 10 of Decree 123/2020/ND-CP. In the case of using electronic invoices, the data format of the tax authority must be according to the provisions in Article 12 of Decree 123/2020/ND-CP.

Thus, when selling goods or providing services, the seller must issue an invoice to deliver to the buyer, irrespective of the value of each transaction of selling goods or providing services. The only exception where it is not required to issue an invoice is for internally transferred goods to continue the production process.

What is the penalty for failing to issue invoices when selling goods or providing services in Vietnam in 2025? (Image from the Internet)

What is the penalty for failing to issue invoices when selling goods or providing services in Vietnam in 2025?

* Penalty for violations regarding issuing invoices when selling goods or services

Level 01: A fine from 500,000 VND to 1,500,000 VND

This penalty applies to any of the following acts:

(i) Failure to issue a summary invoice as per legal regulations on invoicing for selling goods or providing services.

(ii) Failure to issue an invoice for goods or services used for promotion, advertising, samples; goods or services given, gifted, donated, exchanged, or used to substitute employee wages, excluding internal transfer goods, internal consumption to continue the production process.

(According to Clause 2, Article 24 of Decree 125/2020/ND-CP)

Level 02: A fine from 10,000,000 VND to 20,000,000 VND

This penalty is applied to acts of failing to issue invoices when selling goods or providing services to the buyer as prescribed, except for what is specified in point (ii).

Note: The taxpayer is required to take corrective action by issuing an invoice as prescribed when the buyer requests it.

(According to Clauses 5 and 6, Article 24 of Decree 125/2020/ND-CP)

In addition, the penalty level stipulated in Article 24 of Decree 125/2020/ND-CP is applicable to organizations, and the penalty for individuals is half of the monetary penalty imposed on organizations.

* Penalty for tax evasion acts not reaching the level of criminal liability

According to point c, Clause 1, Article 17 of Decree 125/2020/ND-CP, acts of failing to issue invoices when selling goods or services, except when the taxpayer has declared tax for sold goods or services in the corresponding tax period and is detected by a competent authority and concluded as tax evasion, may be subject to the following penalties:

- A fine equal to one-time the tax evaded for taxpayers with at least one mitigating circumstance;

- A fine equal to 1.5 times the tax evaded for taxpayers without aggravating or mitigating circumstances;

- A fine equal to twice the tax evaded for taxpayers with one aggravating circumstance;

- A fine equal to 2.5 times the tax evaded for taxpayers with two aggravating circumstances;

- A fine equal to three times the tax evaded for taxpayers with three or more aggravating circumstances.

Note: Taxpayers are required to take corrective measures by paying the fully evaded tax amount into the state budget.

In cases where tax evasion acts as stipulated in Clauses 1, 2, 3, 4, and 5, Article 17 of Decree 125/2020/ND-CP have exceeded the time limit for punishment, the taxpayer will not be penalized for tax evasion but must fully pay the evaded tax amount and late payment interest calculated on the evaded tax amount into the state budget as per the deadline specified in Clause 6, Article 8 of Decree 125/2020/ND-CP.

At the same time, the taxpayer is required to adjust the loss, the value-added tax input to be deducted on the tax declaration (if any) for acts specified in Clauses 1, 2, 3, 4, 5, Article 17 of Decree 125/2020/ND-CP.

What is the time limit for imposition of penalty for tax evasion acts not reaching the level of criminal liability in Vietnam?

According to point b, Clause 2, Article 8 of Decree 125/2020/ND-CP, the time limit for imposition of penalty of tax evasion acts not reaching the level of criminal liability is 05 years from the violation date.

The date of tax evasion act (except for the act at point a, Clause 1, Article 17 of Decree 125/2020/ND-CP) is the day following the last day of the deadline for submitting the tax declaration of the tax period in which the taxpayer commits tax evasion.