Strictly handle the issuance of fraudulent invoices, buying and selling invoices for profit? Instructions for registration of electronic invoices in Vietnam according to the latest regulations?
Strictly handle the issuance of fraudulent invoices, buying and selling invoices for profit?
Recently, the Ministry of Finance issued Official Telegram No. 01/CD-BTC in 2023 to the General Department of Taxation and the Tax Departments of provinces and centrally affiliated cities on enhancing the management and supervision of the issuance and use of e-invoices.
According to that, there has been a persistent problem recently that some businesses, organizations, and individuals have deliberately taken advantage of the issuance and use of e-invoices for illegal activities, such as making fraudulent invoices, buying/selling invoices for profit, and violating the law.
To enhance the management and supervision of e-invoice issuance and use, the Minister of Finance requests that the General Department of Taxation direct Tax Departments of provinces and centrally affiliated cities to implement the following measures:
- Raise awareness among enterprises and taxpayers about tax law compliance through propagation and education.
- Provide timely warnings of tax violations and crimes, while developing a comprehensive plan for disseminating and educating taxpayers on tax laws to prevent e-invoice issuance and use violations.
- Strengthen the inspection, examination and supervision of the issuance and use of e-invoices to promptly detect law violations and strictly handle them according to regulations.
- Conduct a comprehensive review and assessment of the e-invoice information technology system to propose upgrades;
- Obtain appraisal opinions from the Ministry of Information and Communications without delay; and then present the proposal for approval to the competent authorities; have solutions to ensure network safety and security for the e-invoice system;
- Strengthen supervision, early detection and timely handling of misconducts on the e-invoice system;
- Assign staff to analyze, evaluate and warn, promptly detect acts of forgery and fraud on e-invoices.
- Strengthen coordination with the police authorities, relevant ministries, and agencies in order to handle violations of the law promptly and strictly in the issuance, management, and use of e-invoices.
Strictly handle the issuance of fraudulent invoices, buying and selling invoices for profit? Instructions for registration of electronic invoices in Vietnam according to the latest regulations?
What is the penalty for issuing fraudulent invoices in Vietnam?
Pursuant to the provisions in Clause 2, Article 4 of Decree No. 125/2020/ND-CP stipulating as follows:
Acts of using illegal invoices or evidencing documents; acts of illegally using invoices or evidencing documents
…
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;
b) 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;
c) Invoices with discrepancies in amounts paid for goods or services rendered, or discrepancies in required data fields between an invoice’s copies;
d) 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;
dd) 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;
e) Invoices or evidencing documents in the case where the tax, police or other regulatory authority concludes that they are used illegally.
Thus, the issuance of fraudulent invoices is an act of using illegal invoices or evidencing documents, and the violator will be administratively handled according to the provisions of Article 28 of Decree No. 125/2020/ND-CP 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.
2. Remedies: Compelling the cancellation of used invoices.
Thus, persons using illegal invoices, in particular, issuing fraudulent invoices, can be fined from VND 20 million to VND 50 million.
Note: The above fine is imposed upon organizations, in case the violator is an individual, the fine is 1/2 of the fine imposed upon organizations.
Instructions for registration of electronic invoices in Vietnam according to the latest regulations?
Pursuant to the provisions of Article 15 of Decree No. 123/2020/ND-CP on the registration of e-invoices as follows:
Step 1: Make a declaration of registration for the use of e-invoices according to Form No. 01/DKTD-HDDT Appendix IA issued together with Decree No. 123/2020/ND-CP and send it to the tax authority.
Step 2: The General Department of Taxation Portal sends an electronic notice about the receipt of registration for using e-invoices to enterprises, economic organizations, other organizations, business households and individuals via the registered email address with tax authorities.
Step 3: Within 01 working day from the date of receipt of registration to use e-invoices, the tax authority shall send an electronic notice using Form No. 01/TB-DKDT Appendix IB issued together with Decree No. 123/2020/ND-CP for businesses on accepting or not accepting registration for the use of e-invoices.
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