When is the decision on enforcement by invoice suspension Issued in Vietnam?
When is the decision on enforcement by invoice suspension Issued in Vietnam?
Based on point b, clause 3, Article 34 of Decree 126/2020/ND-CP regarding the timing of the decision on enforcement by invoice suspension, it is established as follows:
- Immediately after the expiration date of the enforcement decision to extract money from the account or freeze the account of the taxed person being enforced; the decision to enforce the deduction of part of the wages or income for an individual; decision to enforce stopping customs procedures (if any) or right after the conditions are met to transfer enforcement measures according to the provisions of clause 3, Article 125 of the Tax Administration Law 2019.
- In cases where the enforcement decision to suspend invoice usage expires and the taxpayer has not paid the full tax debt to the state budget, if conditions do not permit the application of subsequent enforcement measures, or if applying the enforcement measure of suspending invoice usage proves effective, the tax authority will continue to apply an effective enforcement measure. In cases where this enforcement measure is in effect but there is information or conditions for more effective prior or subsequent enforcement measures, the tax authority concurrently applies the prior or subsequent enforcement measures to collect the tax debt into the state budget.
When is the decision on enforcement by invoice suspension Issued in Vietnam? (Image from the Internet)
What are the procedures for applying the enforcement by suspending use of invoices in Vietnam?
According to clause 4, Article 34 of Decree 126/2020/ND-CP, the procedures for applying the enforcement by suspending use of invoices are carried out as follows:
- On the same day a decision to enforce is issued, the tax authority must upload the enforcement decision and notify the suspension of invoice usage on the tax sector's electronic information page or on the mass media within 24 hours since the issuance of the decision.
- During the enforcement period, the tax authority does not accept the invoice issuance notification documents of the organization or individual being enforced, does not assign a code for electronic invoices with the tax authority code, does not issue invoices, does not sell invoices to the enforced taxpayer (except for the case specified in point d, clause 4, Article 34 of Decree 126/2020/ND-CP).
- The tax authority issues a decision to terminate the enforcement measure accompanied by a notification for continued invoice usage according to Form 04-2/CC in Appendix III issued with Decree 126/2020/ND-CP. The same day the decision to terminate enforcement of the suspension of invoice usage is issued, the tax authority must upload it on the tax sector’s electronic information page or on the mass media within 24 hours since the decision is issued.
- If the enforcement by suspending use of invoices is being applied and the taxpayer submits a written request to use invoices for the purpose of salary payment to workers or to ensure ongoing business operations, the tax authority will allow the taxpayer to use invoices for each arising instance on the condition that the taxpayer immediately pays at least 18% of the revenue on the used invoice into the state budget.
Is the enforcement by suspending use of invoices considered as a tax enforcement measure in Vietnam?
According to clause 1, Article 125 of the Tax Administration Law 2019, it is stipulated as follows:
Tax decision enforcement
- Tax decision enforcement include:
a) Withdrawing money from the account of the enforced entity under an administrative management decision at the State Treasury, commercial banks, or other credit institutions; account blockage;
b) Deducting a portion of wages or income;
c) Stopping customs procedures for export-import goods;
d) Suspending the usage of invoices;
đ) Confiscating assets, auctioning sequestered assets according to the law;
e) Collecting money and other assets under the custody of other entities controlled by the enforced subject under an administrative management decision;
g) Revoking business registration certificates, enterprise registration certificates, cooperative registration certificates, investment registration certificates, establishment and operation licenses, or practicing licenses.
- The enforcement measures for administrative decisions about tax management specified in clause 1 of this Article become invalid when the tax debt is fully paid into the state budget.
- The application of enforcement measures for administrative decisions in tax management is executed as follows:
a) For the enforcement measures prescribed in points a, b, and c of clause 1 of this Article, based on the real situation, the tax authority applies the appropriate enforcement measure;
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Thus, the enforcement by suspending use of invoices is indeed an administrative enforcement measure concerning tax management decisions.
