What are the differences between using illegal invoices or evidencing documents and illegally using invoices or evidencing documents in Vietnam?
What is the act of using illegal invoices or evidencing documents in Vietnam?
According to Clause 9, Article 3 of Decree 123/2020/ND-CP and Article 4 of Decree 125/2020/ND-CP on invoices and vouchers are as follows:
- Using the invoices or evidencing documents mentioned hereunder constitutes the act of using illegal invoices or evidencing documents:
+ Counterfeit invoices and evidencing documents;
+ Invoices and evidencing documents not yet valid or expired;
+ Invoices suspended during the period of enforcement of the invoice suspension penalty, except those permitted for use according to a tax authority's notice;
+ E-invoices which are not registered with any tax authority;
+ 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;
+ 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;
+ 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.
What are the differences between using illegal invoices or evidencing documents and illegally using invoices or evidencing documents in Vietnam?
What is the act of illegally using invoices or evidencing documents in Vietnam?
According to Clause 9, Article 3 of Decree 123/2020/ND-CP and Article 4 of Decree 125/2020/ND-CP on invoices and vouchers are as follows:
- Using the invoices or evidencing documents in the following cases constitutes the act of illegally using invoices or evidencing documents:
+ 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;
+ Fraudulent invoices or evidencing documents (i.e. invoices or evidencing documents containing details about goods and services which are not partially or entirely rendered); invoices incorrectly reflecting amounts due, or invoices issued as fraudulent, false or fake ones;
+ Invoices with discrepancies in amounts paid for goods or services rendered, or discrepancies in required data fields between an invoice’s copies;
+ Issued invoices reused with fictitious information for the purpose of transporting goods at the circulation stage or invoices for goods or services which are used for evidencing the rendering of the other goods or services;
+ Invoices or evidencing documents of other entities or persons (except if invoices are received from tax authorities and issued under trust) used for certifying the purchased goods or services or the sold goods or services;
+ Invoices or evidencing documents in the case where the tax, police or other regulatory authority concludes that they are used illegally.
What are the prohibited acts related to invoices and records in Vietnam?
According to Article 5 of Decree 123/2020/ND-CP stipulating prohibited acts related to invoices and records as follows:
- For tax officials:
+ Disturb or cause difficulties to organizations/individuals buying invoices/records;
+ Protect or enter into collusion with organizations/individuals to use illegal invoices/records;
+ Take bribes when carrying out invoice-related inspections.
- For goods sellers, service providers, organizations and individuals with related rights and obligations:
+ Perform deceitful acts such as use of illegal invoices or illegal use of invoices;
+ Obstruct tax officials in performing their tasks, including acts of obstruction that harm the health or dignity of tax officials who are performing invoice/record-related inspections;
+ Illegally access, falsify or destroy invoice/record information systems;
+ Give bribes or perform other invoice/record-related acts for obtaining illegal benefits.
Thus, using illegal invoices or evidencing documents and illegally using invoices or evidencing documents are prohibited acts related to invoices and records according to Decree 123/2020/ND-CP.
Using illegal invoices or evidencing documents is understood as acts of business establishments using invoices and evidencing documents in contravention of regulations, without registration or in violation of regulations on form and use value of the invoice…
illegally using invoices or evidencing documents is understood as acts in which business establishments illegally use invoices and evidencing documents to create business fraud.
Decree 123/2020/ND-CP takes effect from July 1, 2020
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