Cases of suspension of use of e-invoices in Vietnam

Ms. My, thank you for your question. Regarding your issue, Lawnet has the following comments:

The latest regulations on invoices and documents are specified in Decree 123/2020/ND-CP of Vietnam, effective from July 1, 2022.

According to Clause 1, Article 16 of Decree 123/2020/ND-CP, enterprises, business entities, other organizations, household or individual businesses shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:

- An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;

- An enterprise, business entity, other organization, household business or individual business does not operate at the registered location as verified and announced by the tax authority;

- An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;

- An enterprise, business entity, other organization, household business or individual business is banned from using e-invoices by the tax authority for the purpose of enforcement of payment of tax debts;

In addition, an enterprise, business entity, other organization, household business or individual business shall also suspend their use of authenticated and unauthenticated e-invoices in the following cases

- E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;

- E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;

- A business registration authority or competent authority requests an enterprise to suspend operation in a conditional business line after finding that this enterprise does not fully satisfy the business conditions prescribed by law.

If the tax authority, through inspection, discovers that the enterprise is established for the purpose of trade and use of illegal e-invoices or illegal use of e-invoices for tax evasion purposes, the enterprise shall face administrative penalties and be suspended from use of e-invoices according to the decision issued by the tax authority.

According to the above regulations, your company is temporarily suspending business and has already registered with the competent state agency on business suspension. Therefore, your company must stop using e-invoices.

However, after stopping using e-invoices, your company are allowed to continue using e-invoices after informing tax authorities of business resumption, having their TIN reactivated by tax authorities, or obtaining decisions on cancellation of suspension of e-invoices from tax authorities, or upon notification by competent authorities. (Prescribed in Clause 3, Article 16 of Decree 123/2020/ND-CP)

As for the transactions signed before the business suspension date and now needing to use e-invoices to deliver to buyers, you can use e-invoices issued each time they arise. The use of e-invoices for each generation is guided by Clause 2, Article 13 of Decree 123/2020/ND-CP.

Procedures for suspension of use of e-invoices according to Clause 2, Article 16 of Decree 123/2020/ND-CP are as follows:

- The supervisory tax authority shall send a notification requesting the taxpayer in Point dd, e or g Clause 1 of this Article to provide explanation or additional documents about its use of e-invoices.

- The taxpayer must provide such explanation or additional documents within 02 working days from receipt of the notification from the tax authority. Such explanation or additional documents may be provided directly or in writing for the tax authority.

- The taxpayer shall continue using e-invoices or provide explanation. To be specific:

+ If the taxpayer provides adequate and convincing explanation or additional documents as prescribed, it shall continue using e-invoices.

+ If the explanation or additional documents provided by the taxpayer is/are not convincing, the tax authority shall continue requesting the taxpayer to provide additional documents. Additional documents must be submitted within 02 working days from receipt of the tax authority’s request.

- If the taxpayer fails to provide explanation or additional documents within the requested period, the tax authority shall request the taxpayer to suspend its use of authenticated e-invoices or unauthenticated e-invoices, and take further actions as prescribed.

Best regards!

Please Login to be able to download