Cases of suspending the use of electronic invoices in Vietnam according to Decree 123

Cases of suspending the use of electronic invoices in Vietnam according to Decree 123​ (Image from the Internet)

1. Cases of suspending the use of electronic invoices in Vietnam according to Decree 123

According to Clause 1, Article 16 of Decree 123/2020/ND-CP, enterprises, economic organizations, other organizations, households, and individual businesses in the following cases will cease using electronic invoices with a tax authority's code or electronic invoices without a tax authority's code:

- Enterprises, economic organizations, other organizations, households, and individual businesses that have terminated their tax code validity;

- Enterprises, economic organizations, other organizations, households, and individual businesses verified by the tax authority to be inactive at the registered address;

- Enterprises, economic organizations, other organizations, households, and individual businesses that have reported to the competent state management agency about temporary business suspension;

- Enterprises, economic organizations, other organizations, households, and individual businesses notified by the tax authority to suspend using electronic invoices to enforce tax debt recovery;

- Cases of using electronic invoices to sell smuggled goods, prohibited goods, counterfeit goods, or goods infringing intellectual property rights detected and reported to the tax authority by competent agencies;

- Cases of issuing electronic invoices for the purpose of fictitious sales of goods or provision of services to appropriate funds from organizations or individuals detected and reported to the tax authority by competent agencies;

- Cases where the business registration authority or other competent state agency requires businesses to temporarily suspend conditional business lines upon detecting businesses operating without meeting legal business conditions.

Based on inspection results, if the tax authority determines that an enterprise is established for the illicit trading, using electronic invoices, or using electronic invoices unlawfully to evade taxes, the tax authority shall issue a decision to suspend electronic invoice usage; the enterprise will be handled according to legal regulations.

2. Procedures for suspending the use of electronic invoices in Vietnam

The procedure for suspending the use of electronic invoices according to Clause 2, Article 16 of Decree 123/2020/ND-CP is as follows:

- The direct managing tax authority sends notice to taxpayers falling under points dd, e, g of Clause 1, Article 16 Decree 123/2020/ND-CP, requesting them to explain or supplement related information, documents about using electronic invoices.

- Taxpayers explain or supplement information and documents within 02 working days from the date the tax authority issues the notice. Taxpayers can present explanations directly at the tax authority or in writing, supplementing information and documents.

- The taxpayer continues using electronic invoices or provides additional explanations as specified:

+ If the taxpayer has fully explained or supplemented information and documents and can prove the legal use of electronic invoices, they may continue using electronic invoices.

+ If the taxpayer has explained or supplemented information and documents but cannot prove the legal use of electronic invoices, the tax authority shall continue issuing a notice requesting the taxpayer to supplement information and documents. The deadline for supplementation is 02 working days from the date the tax authority issues the notice.

- If the period expires without the taxpayer explaining or supplementing information and documents, the tax authority will issue a notice requesting the taxpayer to cease using electronic invoices with the tax authority's code or electronic invoices without the tax authority's code and will handle it according to regulations.

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