When shall a water supply enterprise suspend their use of unauthenticated e-invoices in Vietnam?

When shall a water supply enterprise suspend their use of unauthenticated e-invoices in Vietnam?

Based on the provisions in Clause 1, Article 16 of Decree 123/2020/ND-CP, a water supply enterprise shall suspend their use of unauthenticated e-invoices in the following cases:

- The enterprise terminates the validity of its tax identification number;

- The enterprise is in a case where the tax authority verifies and announces inactivity at the registered address;

- The enterprise notifies the competent state management authority of a temporary suspension of business;

- The enterprise receives a notice from the tax authority about suspension of use of e-invoices to enforce tax debt collection;

- Instances where the use of e-invoices is for selling smuggled goods, prohibited goods, counterfeit goods, or infringing intellectual property rights, which are detected and announced by competent authorities to the tax authority;

- Instances where e-invoices are made for the purpose of issuing fake invoices for goods and services to misappropriate funds from organizations or individuals, detected and announced by competent authorities to the tax authority;

- Cases where the business registration agency or competent state authorities request the enterprise to temporarily suspend a conditional business line upon discovering that the enterprise lacks legal business conditions.

Based on audit and inspection results, if the tax authority determines that an enterprise was established to illegally buy, sell, and use e-invoices or uses e-invoices unlawfully to evade taxes, the tax authority shall issue a decision to cease the use of e-invoices; the enterprise will be handled according to legal provisions.

When shall a water supply enterprise suspend their use of unauthenticated e-invoices in Vietnam (Image from the Internet)

What is the procedure for suspension of use of e-Invoices for water supply enterprises in Vietnam?

The procedure for suspension of use of e-invoices for water supply enterprises is specified in Clause 2, Article 16 of Decree 123/2020/ND-CP as follows:

Step 01: The directly managing tax authority sends a notification to the taxpayer in the following cases, requesting the taxpayer to provide explanations or supplement information and documents related to the use of e-invoices, including:

- Instances where the use of e-invoices is for selling smuggled goods, prohibited goods, counterfeit goods, or infringing intellectual property rights, which are detected and announced by competent authorities to the tax authority;

- Instances where e-invoices are made for the purpose of issuing fake invoices for goods and services to misappropriate funds from organizations or individuals, detected and announced by competent authorities to the tax authority;

- Cases where the business registration agency or competent state authorities request the enterprise to temporarily suspend a conditional business line upon discovering that the enterprise lacks legal business conditions.

Step 02: The taxpayer explains or supplements information and documents within no more than 02 working days from the date the tax authority issues the notification. The taxpayer can explain directly at the tax office or supplement information and documents in writing.

Step 03: The taxpayer continues to use e-invoices or supplements explanations as follows:

+ In the case the taxpayer has fully explained or supplemented information and documents proving the lawful use of e-invoices, the taxpayer continues to use e-invoices.

+ In the case the taxpayer has explained or supplemented information and documents but cannot prove the lawful use of e-invoices, the tax authority continues to notify the taxpayer to supplement information and documents. The supplementation period is 02 working days from the date the tax authority issues the notification.

Step 04: If by the deadline, the taxpayer has not provided explanations or supplemented information and documents, the tax authority issues a notification requesting the taxpayer to suspend their use of e-invoices with tax authority codes or unauthenticated e-invoices and handles according to regulations.

When may a water supply enterprise continue using unauthenticated e-invoices in Vietnam?

According to Clause 3, Article 16 of Decree 123/2020/ND-CP, a water supply enterprise can continue using unauthenticated e-invoices after notifying the tax authority about the resumption of business or upon the tax authority reinstating the tax identification number. The tax authority can issue a decision to terminate the enforcement of administrative decisions on tax management by suspension of use of invoices or upon receiving a notice from competent authorities.