Sales invoices of 524 enterprises in Ha Noi and Ho Chi Minh City will be inspected

Sales invoices of 524 enterprises in Ha Noi and Ho Chi Minh City will be inspected

Recently, the General Department of Taxation has issued Official Dispatch 1798/TCT-TTKT in 2023 on reviewing and handling illegal invoices.

The General Department of Taxation requires following regulations in order to review and handle tax on illegal acts of buying and selling invoices:

- Continue to review and follow the guidance and direction of the General Department of Taxation in Official Dispatch 129/TCT-TTKT in 2022 and Official Dispatch 133/TCT-TTKT in 2022 to promptly report all contents to the General Department of Taxation in accordance with regulations.

- The Tax Departments focuse on reviewing the sales invoices of 524 enterprises in Appendix 1 of Official Dispatch 1798/TCT-TTKT in 2023.

In case it is discovered that an enterprise under the management of the tax authority has used the invoice of the enterprise among the 524 enterprises whose invoices have been reviewed, the enterprise shall be requested to clarify the use of such invoices for VAT deduction/VAT refund, included in the cost of CIT calculation, legal goods purchased floating, smuggled.

See the detailed list of 524 enterprises whose invoices for sale have been reviewed in Official Dispatch 1798/TCT-TTKT in 2023.

What is the maximum imrisonment sentence for dealing in illegal invoices in Vietnam?

Pursuant to Article 203 of the Criminal Code in 2015 (amended by Clause 2.k Article 2 of the Law on amendments to the Criminal Code in 2017) stipulating printing, issuing, dealing in illegal invoices and receipts for payment of state revenues as follows:

Printing, issuing, dealing in illegal invoices and receipts for payment of state revenues

1. 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.

2. 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:

a) The offence is committed by an organized group;

b) The offence is committed in a professional manner;

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

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

dd) The illegal profit earned is ≥ VND 100,000,000;

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

g) Dangerous recidivism.

3. 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.

4. Punishments incurred by a corporate legal entity that commits any of the offences specified in this Article:

a) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 1 of this Article shall be liable to a fine of from VND 100,000,000 to VND 500,000,000;

b) A corporate legal entity that commits this offence in any of the circumstances specified in Points a, b, d, dd, e, g Clause 2 of this Article shall be liable to fine of from VND 500,000,000 to VND 1,000,000,000;

c) A corporate legal entity that commits this offence in any of the circumstances specified in Article 79 hereof shall be permanently shut down;

d) 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.

As regulations above, if an individual is involved in dealing in illegal invoices in Vietnam, she/she shall face a penalty up to 05 years' imprisonment.

Meanwhile, if a corporate legal entity that commits this offence, it shall be liable to fine up to VND 1,000,000,000, permanently shut down and banned from operating in certain fields or raising capital for 01 - 03 years.

What are cases of suspension of use of e-invoices in Vietnam?

Pursuant to Article 16 of the Decree 123/2020/NĐ-CP stipulating cases of suspension of use of e-invoices in Vietnam as follows:

- 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;

- 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.

Best regards!