Shall enterprises having invalidated TIN (Tax Identification Numbers) be suspended the use e-invoices in Vietnam?

Shall enterprises having invalidated TIN be suspended the use e-invoices in Vietnam?

Pursuant to Clasue 1, Article 16 of the Decree 123/2020/ND-CP stipulating suspension of use of e-invoices in Vietnam as follows: 

1. Enterprises, business entities, other organizations, household or individual businesses shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:

a) An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;

b) 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;

c) An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;

d) 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;

dd) E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;

e) E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;

g) 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.

As regulations above, your company have to suspend the use of e-invoices with the invalidated TIN.

What are procedures for suspension of use of e-invoices in Vietnam? 

Pursuant to Clause 2, Article 16 of the Decree 123/2020/ND-CP stipulating procedures for suspension of use of e-invoices in Vietnam as follows: 

2. Procedures for suspension of use of e-invoices:

a) The supervisory tax authority shall send a notification requesting the taxpayer in Point dd, e or g Clause 1 of this Article to provide explanation or additional documents about its use of e-invoices.

b) The taxpayer must provide such explanation or additional documents within 02 working days from receipt of the notification from the tax authority. Such explanation or additional documents may be provided directly or in writing for the tax authority.

c) The taxpayer shall continue using e-invoices or provide explanation. To be specific:

c.1) If the taxpayer provides adequate and convincing explanation or additional documents as prescribed, it shall continue using e-invoices.

c.2) If the explanation or additional documents provided by the taxpayer is/are not convincing, the tax authority shall continue requesting the taxpayer to provide additional documents. Additional documents must be submitted within 02 working days from receipt of the tax authority’s request.

dd) If the taxpayer fails to provide explanation or additional documents within the requested period, the tax authority shall request the taxpayer to suspend its use of authenticated e-invoices or unauthenticated e-invoices, and take further actions as prescribed.

Best regards!