What are the administrative penalties for violations against regulations on issuance of invoices containing value added tax of a waste transportation and treatment company in Vietnam?
- What are the administrative penalties for violations against regulations on issuance of invoices containing value added tax of a waste transportation and treatment company in Vietnam?
- When is the time to issue an invoice for the provision of services of transportation and treatment of domestic waste?
- When is the time to determine value added tax for the provision of waste transportation and treatment services?
What are the administrative penalties for violations against regulations on issuance of invoices containing value added tax of a waste transportation and treatment company in Vietnam?
Pursuant to the provisions in Article 24 of Decree 125/2020/ND-CP of Vietnam as follows:
Penalties for violations against regulations on issuance of invoices upon sale of goods or provision of services
1. Cautions shall be given as a form of penalty imposed for the following violations:
a) Issuing invoices at the wrong time, but not to the extent of causing any deferred fulfillment of tax obligations, under any mitigating circumstance;
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3. Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for any act of issuing invoices at the wrong time, but not to the extent of causing any deferred payment of tax obligations, except as prescribed in point a of clause 1 of this Article.
4. Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:
a) Issuing invoices at the wrong time in breach of laws on invoices for sale of goods or provision of services, except as provided in point a of clause 1 and 3 of this Article;
b) Issuing invoices without conforming to the statutory ascending numerical sequence, except when the penalty in the form of caution prescribed in point b of clause 1 of this Article is imposed;
Thus, waste transport and treatment companies that make invoices with value added tax in contravention of regulations will be administratively sanctioned according to the above provisions.
What are the administrative penalties for violations against regulations on issuance of invoices containing value added tax of a waste transportation and treatment company in Vietnam?
When is the time to issue an invoice for the provision of services of transportation and treatment of domestic waste?
Pursuant to Clause Article 9 of Decree 123/2020/ND-CP of Vietnam on the invoicing time in Vietnam for service provision activities as follows:
Invoicing time in Vietnam
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2. Invoices for provision of services shall be issued upon completion of the provision of services, whether the payment of the invoiced amount is made or not. In case a service is provided with payments collected in advanced or during the provision of that service, an invoice shall be issued when each payment is collected (excluding payments of deposited amounts or advance payments which are made to ensure the execution of contracts for provision of accounting, audit, financial consulting or taxation services; valuation services; technical survey and design services; supervision consulting services; investment construction project formulation services).
According to that, in case the company provides transportation and treatment services for domestic waste, the regulations on invoicing for service provision shall apply.
Invoices for provision of services shall be issued upon completion of the provision of services, whether the payment of the invoiced amount is made or not.
In case the service provider collects money before or during service provision, invoices shall be issued upon the time of payment as prescribed in Clause 2, Article 9 of Decree 123/2020/ND-CP of Vietnam.
Specifically, in Official Dispatch 391/CTHN-TTHT in 2023 guiding the similar case for Thanh Cong Cooperative as follows:
If Thanh Cong Cooperative provides transportation and treatment of domestic waste, invoices for provision of services shall be issued upon completion of the provision of services, whether the payment of the invoiced amount is made or not. In case the service provider collects money before or during service provision, invoices shall be issued upon the time of payment as prescribed in Clause 2, Article 9 of Decree 123/2020/ND-CP of Vietnam.
When is the time to determine value added tax for the provision of waste transportation and treatment services?
According to the provisions of Article 8 of Circular 219/2013/TT-BTC of Vietnam stipulating the time for calculating VAT in Vietnam for activities of providing waste transportation and treatment services as follows:
Time for calculating VAT in Vietnam
1. For goods sale, VAT shall be calculated when the ownership or the right to use goods is transferred to the buyer, whether the payment is made or not.
2. For service provision, VAT shall be calculated when service provision is completed or when the invoice for service provision is made, whether the payment is made or not.
For telecommunications services, VAT shall be calculated when comparing the data about telecommunications charge according to the contracts between telecommunications service providers, but not later than 2 months from the month in which the charge is incurred.
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Thus, for activities of providing services of transportation and treatment of domestic waste, VAT shall be calculated when service provision is completed, whether the payment is made or not.
In case the service provider collects money before or during the service provision, the time of determining value added tax is the time of making the invoice which is also the time of collecting money according to the provisions of Clause 2, Article 9 of Decree 123/2020/ND-CP of Vietnam.
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