“Tax enforcement” means the application of measures specified in this Law and other relevant provisions to enforce taxpayers’ fulfillment of their tax liabilities. Suspending use of invoices is one of tax enforcement measures. So, when will the taxpayer be implemented the enforcement by suspending use of invoices in accordance with Vietnam’s regulation?
Article table of contents
According to Article 125 of the Law on Tax Administration 2019 of Vietnam, tax enforcement measures include:
- Extract money from the taxpayer’s account at the State Treasury, commercial bank or credit institution; freezing accounts;
- Deduct money from the taxpayer’ salary or income;
- Suspend customs procedures for exports or imports;
- Suspend use of invoices;
- Seize the taxpayer’s assets and sell them at auction in accordance with law;
- Confiscate the taxpayer’s money and assets that are being held by a third party;
- Revoke the certificate of business registration, certificate of enterprise registration, cooperative registration certificate, investigation registration certificate, license for establishment and operation, practice certificates.
Thus, suspending use of invoices is one of tax enforcement measures to enforce taxpayers’ fulfillment of their tax liabilities.
According to Article 34 of the Decree No. 126/2020/NĐ-CP of Vietnam’s Government on elaboration of the Law on Tax Administration (effective from December 05, 2020), cases of implementation of enforcement by suspending use of invoices are as follows:
- Under tax enforcement measures but the following enforcement measures cannot be implemented:
+ Extract money from the taxpayer’s account at the State Treasury, commercial bank or credit institution; freezing accounts;
+ Deduct money from the taxpayer’ salary or income;
+ Suspend customs procedures for exports or imports;
- Under tax enforcement measures, having applied the above measures but still not collecting enough tax arrears into the state budget.
- In case any of the measures turns out to be ineffective, the tax authority may implement the enforcement by suspending use of invoices.
- At the request of tax authorities.
In which:
- Tax decisions include:
+ Decision on imposition of administrative penalties for tax offenses;
+ Tax liability imposition notices and decisions; tax debt notices; refund disgorgement decisions;
+ Extension decisions;
+ Permissions for payment by installments;
+ Decisions on invalidation of tax debt freezing decision; decisions on implementation of remedial measures in accordance with tax administration laws;
+ Decision on payment of damages;
+ Other administrative tax decisions prescribed by law.
- The use of the following kinds of invoices shall be suspended:
+ Invoices printed by the taxpayer,
+ Invoices printed under the taxpayer’s or tax authority’s order;
+ Electronic invoices created by the taxpayer as prescribed by law.
Moreover, Article 34 of the Decree No. 126/2020/NĐ-CP of Vietnam’s Government also stipulates 02 basis for invoice suspension, including:
- Information about the taxpayer’s invoices in the database of tax authorities or other organizations and individuals (if any).
- Information about use of invoices by the taxpayer and relevant entities (if any) in provided for the tax authority in case the tax authority’s database is not sufficient.
Thus, organizations and individuals need to pay attention to their activities to comply with the provisions of tax law as well as to seriously fulfill their tax payment obligations to avoid the application of tax enforcement measures, especially the enforcement by suspending use of invoices.
Le Vy
- Key word:
- Decree No. 126/2020/NĐ-CP
- taxpayer
