When is the invoice issued for room rental services in Vietnam?

When is the invoice issued for room rental services in Vietnam?

Based on Clause 2, Article 9 of Decree 123/2020/ND-CP, the specific regulation on the timing of invoice issuance is as follows:

Time of invoice issuance

1. The time of invoice issuance for the sale of goods (including the sale of state assets, confiscated assets, national reserve goods) is the time of transfer of ownership or right to use goods 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 service provision, regardless of whether payment has been received. In cases where the service provider collects payment before or during service provision, the invoice issuance time is the time of payment receipt (excluding cases of advance deposits or payments to ensure the performance of contracts for services such as accounting, auditing, financial consulting, tax; valuation; surveying, technical design; supervision consulting; establishing investment projects).

...

Thus, according to the above regulation, the invoice issuance time for room rental services is the time of service completion (regardless of whether payment has been received). In cases where the room rental service provider collects payment before or during the provision of room rental services, the invoice issuance time is at the time of payment.

When is the invoice issued for room rental services in Vietnam? (Image from the Internet)

Which invoices and records are considered illegal in Vietnam?

Based on Clause 1, Article 4 of Decree 125/2020/ND-CP, the use of invoices and records in the following cases is considered illegal:

- Fake invoices and records;

- Invoices and records that have not been put into use or have expired;

- Invoices under suspension during enforced suspension measures, except where permitted by tax authority notifications;

- Electronic invoices not registered for use with the tax authority;

- Electronic invoices not authorized by the tax authority in cases requiring such authorization;

- Invoices for goods and services with issue dates after the seller has been determined by the tax authority not to be operating at the registered business address;

- Invoices and records for goods and services with issues dates before it has been determined that the issuer is no longer operating at the registered business address or has not been notified by the tax authority, but other competent authorities, such as the police, have determined that they are illegal.

What is the minimum penalty for the use of illegal invoices in Vietnam?

According to Article 28 of Decree 125/2020/ND-CP, the specifics of penalties for using illegal invoices for tax declaration are as follows:

Penalty for illegal use of invoices

1. Fines ranging from VND 20,000,000 to VND 50,000,000 are imposed for using illegal invoices, as stipulated in Article 4 of this Decree, except as specified in Point đ, Clause 1, Article 16, and Point d, Clause 1, Article 17 of this Decree.

2. Remedial measures: Mandatory cancellation of already used invoices.

Accordingly, the minimum penalty for the use of illegal invoices is VND 20,000,000.

What are the remedial measures for administrative violations regarding invoices in Vietnam?

Based on Clause 3, Article 7 of Decree 125/2020/ND-CP, the specific remedial measures include:

- Mandatory payment of the deficient tax, excess tax exemptions, reductions, refunds, evaded tax, and late tax payment into the state budget.

- Mandatory adjustment of losses and deductions of input value-added tax to carry forward.

- Mandatory submission of records for taxpayer registration changes; resubmission and supplementary submission of records in the tax dossier; submission of tax returns and annexes; provision of information.

- Mandatory performance of invoice issuance procedures.

- Mandatory compliance with invoice preparation regulations.

- Mandatory cancellation or destruction of invoices and printed products.

- Mandatory preparation and submission of notices and reports on invoices.

- Mandatory electronic invoice data transfer.

- Mandatory return of illegal profits gained through administrative violations.