What are the fines for failing to issue invoices upon sale of goods in Vietnam?

What are the fines for failing to issue invoices upon sale of goods in Vietnam?

Pursuant to Clause 5 Article 5 of the Decree 125/2020/ND-CP stipulating sanctioning principles as follows:

Sanctioning principles

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5. For a tax or invoice-related administrative violation, if an entity commits such violation, they must be fined two times as much as the amount of penalty imposed on persons, except the amounts of penalty for the acts prescribed in Article 16, 17 and 18 herein.

Pursuant to Clause 4.a Article 7 of the Decree 125/2020/ND-CP stipulating sanctioning forms, remedies and principles of imposition of fines for tax or invoice-related administrative violations as follows:

Sanctioning forms, remedies and principles of imposition of fines for tax or invoice-related administrative violations

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4. Principles of determination of fine amounts

a) The fine amounts specified in Article 10, 11, 12, 13, 14 and 15; clause 1 and 2 of Article 19; and Chapter III herein, shall be those applied to violating entities.

Taxpayers that are family households or sole proprietorship households shall be fined the same as violating persons.

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Pursuant to Article 24 of the Decree 125/2020/ND-CP stipulating penalties for violations against regulations on issuance of invoices upon sale of goods or provision of services as follows:

Penalties for violations against regulations on issuance of invoices upon sale of goods or provision of services

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5. 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.

6. Remedies: Compelling the issuance of invoices according to regulations with respect to the acts specified in point d of clause 4 and 5 of this Article upon buyer's request.

As regulations above, 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. The sellers are compelled to issue invoices according to regulations.

The above penalty is applicable to organizations. For individuals, households, and business households that do not issue invoices to buyers, they will be fined from 5,000,000 VND to 10,000,000 VND.

What are the fines for failing to issue invoices upon sale of goods in Vietnam? - image from internet

What is the form number of an invoice in Vietnam?

Pursuant to Clause 1 Article 4 of the Circular 78/2021/TT-BTC, form number of an e-invoice is a digit from 1 to 6 depending on the type of e-invoice:

- 1: Electronic VAT invoice;

- 2: Electronic sales invoice;

- 3: E-invoice for sale of public property;

- 4: E-invoice for sale of national reserve goods;

- 5: Other types of e-invoice, including electronic stamp, ticket, card, receipt or other electronic documents that have other names but have the same contents as an e-invoice as prescribed in the Decree No. 123/2020/ND-CP;

- 6: Electronic records which are used and managed in the same manner as invoices, including electronic delivery and internal consignment notes, and electronic delivery notes for goods sent to sales agents.

What are regulations on reference number of an e-invoice in Vietnam?

Pursuant to Clause 1 Article 4 of the Circular 78/2021/TT-BTC stipulating form number, reference number and names of copies of an invoice as follows:

Reference number of an e-invoice contains 6 characters, including letters and numbers, indicating whether the invoice bears the tax authority’s identification code or not, year of issuance, and type of e-invoice. 6 characters are as follows:

- The first character: C if the invoice bears a tax authority’s authentication code; K if the invoice does not bear a tax authority’s authentication code;

- The next two characters are the last two digits of the year in which the e-invoice is issued, written in Arabic numerals. Example: 22 if the e-invoice is issued in 2022; 23 if the e-invoice is issued in 2023;

- The next character is either T, D, L, M, N, B, G or H depending on the type of e-invoice. To be specific:

+ T: E-invoices registered with tax authorities by enterprises, organizations or household businesses;

+ D: E-invoices used for sale of public property or national reserve goods or special e-invoices that do not have some mandatory contents of the “T” invoices;

+ L: E-invoices issued separately by tax authorities;

+ M: E-invoices generated by cash registers;

+ N: Electronic delivery and internal consignment notes;

+ B: Electronic delivery notes for goods sent to sales agents;

+ G: VAT invoices in the form of electronic stamps, tickets or cards;

+ H: Sales invoices in the form of electronic stamps, tickets or cards.

- The last two characters shall be decided by the seller to serve their management requirements. If the seller uses different forms of the same type of e-invoice, the last two characters shall be used to differentiate such e-invoice forms. If the seller does not decide the last two characters, YY shall be specified;

- The reference number and form number of an e-invoice shall be written on the upper right corner of the invoice (or a noticeable position);

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