Collection of judgments on dealing in illegal invoices and receipts in Vietnam

1. What is the act of dealing in illegal invoices and receipts under the law in Vietnam?

According to the provisions of Article 203 of the Penal Code 2015, amended in 2017: The crime of printing, issuing, dealing in illegal invoices and receipts for payment of state revenues

(1) Penalty framework for individuals

- Basic penalty framework:

Fine from 50,000,000 VND to 200,000,000 VND, up to 03 years' community sentence or 06 - 36 months' imprisonment:

Any person who prints, issues, deals in illegal blank invoices and receipts for payment of state revenues with a quantity of 50 - 100 or illegal filled invoices and receipts with a quantity of 10 - 30 or the illegal profit earned is from VND 30,000,000 to under VND 100,000,000 shall be liable to a fine of from VND 50,000,000 to VND 200,000,000, face a penalty of up to 03 years' community sentence or 06 - 36 months' imprisonment.

- Aggravated penalty framework:

This offence committed in any of the following circumstances carries a fine of from VND 200,000,000 to VND 500,000,000 or a penalty of 01 - 05 years' imprisonment:

+ The offence is committed by an organized group;

+ The offence is committed in a professional manner;

+ The offence involves the abuse of the offender's position or power;

+ The quantity of blank invoices and receipts is ≥ 100; the quantity of filled invoices an receipts is ≥ 30;

+ The illegal profit earned is ≥ VND 100,000,000;

+ The loss incurred by state budget is ≥ VND 100,000,000;

+ Dangerous recidivism.

- Additional penalties: The offender might also be liable to a fine of from VND 10,000,000 to VND 50,000,000, be prohibited from holding certain positions or doing certain works for 01 - 05 years.

(2) Penalty framework for corporate legal entity

- Basic penalty framework: A corporate legal entity that commits this offence in any of the circumstances specified in Clause 1 of Article 203 of the Penal Code 2015, amended in 2017 shall be liable to a fine of from VND 100,000,000 to VND 500,000,000;

- Aggravated penalty range: A corporate legal entity that commits this offence in any of the circumstances specified in Clause 2 of Article 203 of the Penal Code 2015, amended in 2017 shall be liable to fine of from VND 500,000,000 to VND 1,000,000,000;

- Additional penalties:

+ A corporate legal entity that commits this offence in any of the circumstances specified in Article 79 of the Penal Code 2015, amended in 2017 shall be permanently shut down;

+ The violating corporate legal entity might also be liable to a fine of from VND 50,000,000 to VND 200,000,000, be banned from operating in certain fields or raising capital for 01 - 03 years.

2. Collection of judgments on dealing in illegal invoices and receipts in Vietnam

- Judgment on dealing in illegal invoices and receipts No. 16/2022/HS-ST

+ Trial level: First instance.

+ Trial agency: People's Court of Hong Bang District, Hai Phong City.

+ Quoted content: The defendant NVT has acquired the papers and seals of 3 companies (W, X, Y) to illegally buy and sell VAT invoices. From 4/2017 to 9/2020, NVT has run 3 companies that sell 1,732 VAT invoices with a total value stated on the invoice of VND 1,176 billion and illicit profits of VND 155 million. NVT hired BTN to write invoices and summarize the data for Y. BTN Company knew the wrongdoing but still helped and earned 15 million VND.

+ Results of settlement: The People's Court of Hong Bang District sentenced NVT to VND 300 million and VND 200 million for the crime of illegal trading of invoices. Confiscation of the state fund of 170 million dong of illicit profits and some related exhibits.

- Judgment on dealing in illegal invoices and receipts for the State budget collection No. 36/2022/HS-ST

+ Trial level: First instance.

+ Trial agency: People's Court of Son Tra District, Da Nang City.

+ Quoted content: Defendant Pham Thi Minh N is the director of Phat N. Company.
From February 2013 to December 2014, the defendant illegally sold 43 VAT invoices without goods and services attached to 6 companies with a total value of 1.75 billion dong, illicit profits of 27.6 million dong.

+ Results: People's Court of Son Tra District, Ho Chi Minh City. Da Nang sentenced defendant Pham Thi Minh N to 18 months in prison for "illegal trading of invoices".

In addition, forcing the defendant to pay a 20 million additional fine. Confiscation of the state fund of 27.6 million dong of illicit profits.

- Judgment on dealing in illegal invoices and receipts No. 230/2022/HS-ST

+ Trial level: First instance.

+ Trial agency: People's Court of Tu Son City, Bac Ninh Province.

+ Quoted content: Defendant Tran Van L is the man who runs Hung L. from 2020–2021. L sells 51 VAT invoices to 17 enterprises, gaining VND 50.5 million. In order to legalize the sale of invoices, L bought 19 VAT invoices from 4 other companies with a total value of VND 12.5 billion.

+ Results of settlement: The People's Court of Tu Son City, Bac Ninh Province sentenced defendants to 18 months in prison for illegal trading of invoices.

- Judgment on dealing in illegal invoices and receipts No. 45/2022/HS-ST

+ Trial level: First instance.

+ Trial agency: The People's Court of Ha Nam province.

+ Quoted content: Defendant Bui Van U, the owner of the individual Bui Van U, has sold 24 blank invoices, including 18 invoices, to the company B of defendant Bui Kien Q, earning an illicit profit of nearly 11 million dong. Bui Kien Q, Director of Company B, directed employees to buy 18 blank invoices from Bui Van U to legalize goods.

+ Results of settlement: The People's Court of Ha Nam Province sentenced Bui Van U to 18 months in prison; Bui Kien Q 15 months in prison; Tran Thi H, Accounting of Company B, 12 months in prison for illegal trading of invoices.

- Judgment on dealing in illegal invoices and receipts No. 35/2021/HSST

+ Trial level: First instance.

+ Trial agency: People's Court of Vinh Phuc province.

+ Quoted content: Defendant Nguyen Van H, Director of Tourism Trading and Service Co., Ltd, between May 2017 to March 2018, had been illegally sold to Phan Thi A - Accounting of Construction Investment Co., Ltd., 16 value-added invoices of Company D to record the food item with 8.5% of the value of the goods stated on the invoice. The total payment of 16 invoices is VND 86,911,000, of which: the goods are VND 79,010,000 and the VAT is VND 7,901,000. The illicit amount of Nguyen Van H from the illegal sale of 16 invoices was 6,715,850 dong.

+ Results of settlement: Punishing defendant Nguyen Van H 09 (nine) months of non -custodial reform.

Best regards!

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