Vietnam: 7 cases that enterprises must suspend their use of e-invoices

According to Article 16 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, enterprises, business entities, other organizations, household or individual businesses shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:

1. An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;

2. 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;

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

4. 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;

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

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

7. 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.

Note: 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.

View more details at the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, effective from July 01, 2022.

Le Vy

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