Is it mandatory to issue an invoice for gifts to employees in Vietnam?

Is it mandatory to issue an invoice for gifts to employees in Vietnam?

Pursuant to Clause 1 Article 16 of the Circular 39/2014/TT-BTC (amended by Clause 3.a Article 6 of the Circular 119/2014/TT-BTC) stipulating rules for issuing invoices as follows:

- Only the invoices regulated in this Circular may be issued and given to buyers of goods and services.

- Sellers must issue invoices for goods and services, including those used for trade promotion, advertising and as samples; goods and services used for donation, exchange, or paid as salaries for employees and those that are used internally (except for goods circulated internally to proceed production).

Information on invoices must matches the actual transactions; no erasure and change is allowed; the ink used must be consistent in color and indelible; do not use red ink; numbers and text must be written continuously without interruption; do not write or print on printed text; any blank space shall be crossed out. It is not required to cross out blank space on self-printed invoices or ordered invoice made by computers.

- Invoices shall be numbered in ascending order.

In case a business organization has multiple affiliated units that directly sell goods, or multiple authorized establishments that use ordered invoices with the same symbol in the form of distribution to each establishment in the system, the business organization must keep a log of distribution of invoices to every of its affiliated units and authorized establishments. Affiliated units and authorized establishments must use invoices in numerical order and within the quantity of invoices each of them receive.

In case a business organization has multiple outlets or authorized establishment that use self-printed invoices or electronic invoices with the same symbol in the form of random access from a server, the business organization must have a specific plan for random access by its outlets and authorized units. Invoices shall be issued in numerical order in the whole system of the business organizations.

Under current regulations, employers must issue an invoice for gifts to employees, even if the gifts are products of the company.

Is it mandatory to issue an invoice for gifts to employees in Vietnam? - Source: Internet

Will there be a fine if employers do not issue an invoice for gifts to employees in Vietnam?

Pursuant to Clause 2 Article 24 of the Circular 125/2020/NĐ-CP, fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for one of the following violations:

- Failing to issue general invoices in accordance with laws on invoices for sale of goods or provision of services;

- Failing to invoice promotional, advertising or sample goods or services; goods and services used as gifts, donations, presents, swaps or employee’s payment-in-kind wages, except for internally circulated or consumed goods for further production purposes.

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Pursuant to Clause 5 Article 24 of the Circular 125/2020/NĐ-CP, fines ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for any act of failing to issue invoices upon sale of goods or provision of services to buyers as required by laws, except the acts prescribed in point b of clause 2 of this Article.

According to the above regulation, businesses must issue invoices for all products used for promotion, advertising, samples; goods and services used to give, donate, gift, exchange, or replace wages for employees, except for goods circulating internally, consumed internally to continue the production process.

In comparison with the case you mentioned, the failure to issue an invoice for goods used to give to employees will be fined from 500,000 to 1,500,000 VND.

Best regards!