What is the time limit for imposition of invoice-related administrative violations in Vietnam? What are the principles for imposition of invoice-related administrative violations?
What is the time limit for imposition of invoice-related administrative violations in Vietnam?
Based on point a, clause 1, Article 8 of Decree 125/2020/ND-CP, amended by clause 1, Article 1 of Decree 102/2021/ND-CP, which defines the time limits for imposition of administrative violations related to tax and invoices as follows:
time limits for imposition of administrative penalties concerning taxes, invoices; grace periods deemed as not penalized; taxation periods to recover tax debt
- time limits for imposition of invoice-related administrative violations
a) The time limits for imposition of invoice-related administrative violations is 2 years.
b) The starting point for calculating the time limits for imposition of invoice-related administrative violations is regulated as follows:
For ongoing administrative violations specified in point c of this clause, the statute of limitations is calculated from the day the authorized officer detects the violation.
For completed administrative violations specified in point d of this clause, the statute of limitations is calculated from the day the violation ceases.
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Thus, according to the above regulations, the time limits for imposition of invoice-related administrative violations is 2 years. The calculation starts from the day the authorized officer detects the ongoing administrative violation or from the day the completed administrative violation ceases.
What is the time limit for imposition of invoice-related administrative violations in Vietnam? What are the principles for imposition of invoice-related administrative violations? (Image from Internet)
What are the principles for imposition of invoice-related administrative violations in Vietnam?
The principles for imposition of invoice-related administrative violations are stipulated in Article 5 of Decree 125/2020/ND-CP, supplemented by point a, clause 1, Article 6 of Decree 102/2021/ND-CP as follows:
- The administrative penalties for tax and invoice violations are implemented according to the legal provisions on tax management and regulations handling administrative violations.
- Individuals and organizations are penalized for administrative violations concerning taxes and invoices only when there are actual violations as prescribed in Decree 125/2020/ND-CP.
- Organizations and individuals committing multiple administrative violations are penalized for each violation, except in the following cases:
+ At the same time, if a taxpayer misreports one or more criteria on tax documents of the same tax type, only the misreporting with the highest monetary penalty frame is penalized, and extraordinary aggravating circumstances for multiple occurrences are applied.
+ At the same time, if a taxpayer is late in submitting multiple tax declarations of various tax periods but of the same tax type, only one act of late submission with the highest monetary penalty frame is penalized, and extraordinary aggravating circumstances for multiple occurrences are applied.
+ In cases where a late tax declaration submission involves tax evasion, it is penalized separately for tax evasion.
+ At the same time, if a taxpayer is late in submitting multiple similar notifications or reports on invoices, the act with the highest monetary penalty frame is penalized, and extraordinary aggravating circumstances for multiple occurrences are applied.
+ Violations involving the illegal use of invoices or the use of illegal invoices should be penalized under Articles 16 and 17 of Decree 125/2020/ND-CP and not under Article 28 of Decree 125/2020/ND-CP.
- If there are multiple components within one administrative procedure decreed as more than one administrative violation in Decree 125/2020/ND-CP, the violating organization or individual shall be penalized for each violation.
- For the same administrative violation concerning taxes or invoices, the monetary penalty for an organization is double that for an individual, except for penalties prescribed in Articles 16, 17, and 18 of Decree 125/2020/ND-CP.
Which entities are subject to invoice-related administrative violations in Vietnam?
As per clause 1, Article 3 of Decree 125/2020/ND-CP, those subject to invoice-related administrative violations include:
(1) Taxpayers who commit administrative violations concerning taxes and invoices.
+ If the taxpayer authorizes another organization or individual to fulfill tax obligations where tax laws assign duty to the representative, if this authorized party violates administrative regulations, the representative organization or individual is penalized under Decree 125/2020/ND-CP.
+ In cases where tax and tax management laws require an organization or individual to perform taxpayer registration, declaration, and payment on behalf of the taxpayer, and said organization or individual commits administrative violations, they shall be penalized according to Decree 125/2020/ND-CP for tax-related administrative violations.
(2) Organizations and individuals involved in administrative violations concerning taxes and invoices.
In particular, taxpayers who are organizations penalized for administrative violations concerning taxes and invoices include:
- Enterprises established and operating under the Enterprise Law, Investment Law, Banking Law, Insurance Business Law, Securities Law, Petroleum Law, Trade Law, and other legal documents; subsidiary units directly declaring, paying taxes, and using invoices;
- Public and private non-business units;
- Organizations established and operating under the Cooperative Law;
- Foreign organizations and enterprises, branches, representative offices of foreign traders, and operating offices of foreign contractors in Vietnam conducting business or earning income in Vietnam;
- State agencies engaging in administrative violations concerning taxes and invoices that are not part of their delegated state management roles;
- Cooperatives and other organizations established under legal regulations.
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