Entities subject to administrative penalties for tax or invoice-related violations in Vietnam

According to Article 3 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, persons or entities subject to administrative penalties for tax or invoice-related violations are as follows:

1. Persons or entities subject to administrative penalties for tax or invoice-related violations, including:

- Individual taxpayers committing tax or invoice-related administrative violations.

- In case where a taxpayer authorizes another entity or person to fulfill tax-related obligations subject to laws on taxes and tax administration under which a trusted party's obligations and duties to act on a taxpayer’s behalf are prescribed, and the trusted party commits any administrative violation prescribed herein, the trusted party (either person or entity) shall be sanctioned as per this Decree.

- In case where, as provided by legislation on taxes and tax administration, an entity and person obliged to act on a taxpayer’s behalf to make tax registration, declaration or payment commits any violation prescribed in this Decree, that trusted entity or person shall be subject to the relevant tax-related administrative penalty stated herein.

- Entities and persons involved in tax or invoice-related administrative violations.

2. Corporate taxpayers subject to tax or invoice-related administrative penalties, including:

- Enterprises established and operated under the provisions of the Law on Enterprises, the Law on Investment, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities, the Law on Petroleum, the Law on Commerce and other legislative documents, dependent units of enterprises and places of business directly declaring, paying taxes and using invoices;

- Public and non-public service units;

- Entities established and operated under the Law on Cooperatives;

- Foreign entities and enterprises, branches and representative offices of foreign traders, and executive offices of foreign contractors in Vietnam, which are doing business or generating income in Vietnam;

- State regulatory authorities performing any act violating taxation and invoice regulations though such act does not fall under their assigned duties;

- Cooperative associations and other entities established under laws.

View more details at the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, effective from December 05, 2020.

Thuy Tram

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