Late Payment Penalties for Canceling Invoices According to Circular 78
What is the penalty for late submission of invoice cancellation notice according to Circular 78?
According to Article 29 Decree 125/2020/ND-CP rectified by Section 2 Official Dispatch 29/CP-KTTH of 2021, the penalties for late submission of invoice cancellation notice according to Circular 78 are stipulated as follows:
Article 29. Penalties for violations related to the preparation, submission of notices, and reports on invoices
1. A warning shall be issued for the act of submitting invoice notices, reports beyond the prescribed deadline from 01 to 05 days, from the expiration date, with mitigating circumstances.
- A fine ranging from VND 1,000,000 to VND 3,000,000 shall be imposed for one of the following acts:
a) Submitting invoice notices, reports beyond the prescribed deadline from 01 to 10 days, from the expiration date, except for the case stipulated in Clause 1 of this Article;
b) Preparing incorrectly or incompletely the contents of the invoice notices or reports as required to the tax authority.
In cases where organizations or individuals self-detect errors and re-submit replacement notices, reports to the tax authority before the tax authority or a competent agency issues a decision on tax inspection at the taxpayer’s headquarters, no penalty shall be imposed.
3. A fine ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for the act of submitting invoice notices, reports to the tax authority beyond the prescribed deadline from 11 to 20 days, from the expiration date.
4. A fine ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for the act of submitting invoice notices, reports to the tax authority beyond the prescribed deadline from 21 to 90 days, from the expiration date.
- A fine ranging from VND 5,000,000 to VND 15,000,000 shall be imposed for one of the following acts:
a) Submitting invoice notices, reports to the tax authority beyond the prescribed deadline from 91 days or more, from the expiration date;
b) Failing to submit invoice notices, reports to the tax authority as prescribed.
- The violations related to the preparation, submission of invoice notices, reports already regulated in Articles 23 and 25 of this Decree shall not apply this Article when imposing administrative penalties.
- Remedial measures: Compulsory preparation and submission of invoice notices, reports for violations specified in point b clause 2 and point b clause 5 of this Article.
Thus, the penalties for late submission of invoice cancellation notice according to Circular 78 are as follows:
- Warning: if late submission from 01 to 05 days from the expiration date, with mitigating circumstances.
- Fine from VND 1,000,000 to VND 3,000,000: late submission from 01 to 10 days from the expiration date, except for the case of delay from 01 to 05 days with mitigating circumstances.
- Fine from VND 2,000,000 to VND 4,000,000: if late submission from 11 to 20 days from the expiration date.
- Fine from VND 4,000,000 to VND 8,000,000: if late submission from 21 to 90 days from the expiration date.
- Fine from VND 5,000,000 to VND 15,000,000: if late submission from 91 days or more from the expiration date.
Penalty for late submission of invoice cancellation notice according to Circular 78 (Image from the Internet)
When is the deadline for destroying printed invoices purchased from the tax authority?
Clause 1, Article 27 of Decree 123/2020/ND-CP stipulates the destruction of printed invoices purchased from the tax authority as follows:
Article 27. Destruction of printed invoices purchased from the tax authority
1. Enterprises, economic organizations, households, and business individuals with unused printed invoices must destroy them. The deadline for invoice destruction is no later than 30 days from the date of notification to the tax authority. In case the tax authority has announced the invoices as invalid (excluding cases of notice due to tax enforcement measures), enterprises, economic organizations, households, and business individuals must destroy the invoices within 10 days from the date the tax authority announces the invalidity or from the date the lost invoice is found.
Invoices already prepared by accounting units are destroyed in accordance with the law on accounting.
Unprepared invoices that serve as evidence in lawsuits shall not be destroyed but handled according to legal regulations.
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Thus, the deadline for destroying printed invoices purchased from the tax authority is no later than 30 days from the date of notification to the tax authority.
Note: For cases where the tax authority has announced the invoices as invalid (excluding cases of notice due to tax enforcement measures), the invoices must be destroyed within 10 days from the date the tax authority announces the invalidity or from the date the lost invoice is found.
When must electronic invoices be suspended from use?
According to Article 16 of Decree 123/2020/ND-CP, electronic invoices must be suspended from use in the following cases:
- The enterprise terminates the tax code’s effectiveness.
- The enterprise falls under the case where the tax authority verifies and announces that the enterprise is not operating at the registered address.
- The enterprise notifies the competent state authority to temporarily suspend business.
- The enterprise has a notice from the tax authority about stopping the use of electronic invoices to enforce tax debt recovery.
- The act of using electronic invoices to sell smuggled goods, prohibited goods, counterfeit goods, or goods infringing intellectual property rights is detected by competent authorities and notified to the tax authority.
- The act of issuing electronic invoices for the purpose of issuing false invoices, providing services to embezzle money from organizations or individuals is detected by competent authorities and notified to the tax authority.
- The business registration authority or competent state agency requests the enterprise to temporarily suspend the business of conditional business sectors when the enterprise is found to be operating without meeting the conditions.
- The tax authority determines the enterprise was established to trade, use counterfeit electronic invoices or use electronic invoices illegally to evade taxes.
