What is considered a fake invoice in Vietnam? Will the used fake invoices be destroyed?

What is considered a fake invoice in Vietnam? Will the used fake invoices be destroyed? - T.P - Hanoi.

What is considered a fake invoice in Vietnam?

Pursuant to Clause 8, Article 3 of Decree 123/2020/ND-CP stipulates as follows:

Definitions
For the purposes of this Decree, the terms used herein shall be construed as follows:
...
8. “fake invoice or record” means an invoice or record which is printed or generated using the template of invoice or record which has been published by another entity, or bearing the same number of the one invoice or record code, or an electronic invoice or record which is forged.
...

Accordingly, fake invoice or record means an invoice or record which is printed or generated using the template of invoice or record which has been published by another entity, or bearing the same number of the one invoice or record code, or an electronic invoice or record which is forged.

What is considered a fake invoice in Vietnam? Will the used fake invoices be destroyed? (Image from the Internet)

How much is the penalty for the act of using fake invoices in Vietnam?

According to Article 28 of Decree 125/2020/ND-CP regulating penalties for the act of using illegal invoices or using invoices illegally as follows:

Penalties for the act of using invoices illegally or using illegal invoices
1. Fines ranging from VND 20,000,000 to VND 50,000,000 shall be imposed for the act of using illegal invoices or using invoices illegally as provided in Article 4 herein, except the case prescribed in point dd of clause 1 of Article 16 and point d of clause 1 of Article 17 herein.
...

The act of using illegal invoices or using invoices illegally may be subject to administrative sanctions.

Accordingly, the acts of using illegal invoices and illegally using invoices specified in Article 4 of Decree 125/2020/ND-CP include the following acts:

Acts of using illegal invoices or evidencing documents; acts of illegally using invoices or evidencing documents
1. Using the invoices or evidencing documents mentioned hereunder constitutes the act of using illegal invoices or evidencing documents:
a) Counterfeit invoices and evidencing documents;
b) Invoices and evidencing documents not yet valid or expired;
c) Invoices suspended during the period of enforcement of the invoice suspension penalty, except those permitted for use according to a tax authority's notice;
d) E-invoices which are not registered with any tax authority;
dd) E-invoices of which tax authority's codes have not yet been granted if they are subject to the regulation under which e-invoices with tax authority’s codes are required;
e) Invoices for purchase of goods or services with the invoicing date specified thereon which falls within the period from the date on which a tax authority determines that the seller is not doing business at the address registered with a competent regulatory authority;
g) Invoices or evidencing documents for purchase of goods or services with the invoicing date before the date on which it is determined that the invoicing party are not doing business at the address registered with a competent regulatory authorities or, though the invoicing party’s notification of the closing of their business at the address already registered with the competent regulatory authority has not been sent to the tax authority, the tax authority or the police authority or other regulatory agency establishes that they are illegal.
2. Using the invoices or evidencing documents in the following cases constitutes the act of illegally using invoices or evidencing documents:
a) Invoices or evidencing documents that do not contain all compulsory contents as prescribed; invoices on which information is erased or corrected in breach of regulations;
...

Thus, using fake invoices is considered an illegal act of using invoices and can be subject to administrative sanctions with a fine from 20,000,000 VND to 50,000,000 VND.

However, the above fine does not apply in cases of using fake invoices for the following purposes:

- To account for the value of purchased goods and services to reduce the amount of tax payable or increase the amount of tax to be refunded, the amount of tax to be exempted or reduced, but when detected by the tax authority, the buyer can prove that the violation of using illegal invoices and documents belongs to the seller and the buyer has fully accounted for it according to regulations.

This behavior may result in a fine of 20% of the under-declared tax amount or the tax amount that has been exempted, reduced, or refunded is higher than prescribed.

- To declare tax to reduce the amount of tax payable or increase the amount of tax refunded, the amount of tax exempted or reduced.

This act may be subject to a fine of one time the amount of tax evaded for taxpayers with one or more extenuating circumstances.

Vietnam: Will the used fake invoices be destroyed?

According to Clause 2, Article 28, Decree 125/2020/ND-CP stipulates as follows:

Penalties for the act of using invoices illegally or using illegal invoices
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2. Remedies: Compelling the cancellation of used invoices.

Accordingly, used fake invoices must be cancelled according to the provisions of law.

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