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Decree No. 125/2020/ND-CP dated October 19th, 2020 in the Government on regulating administrative penalties for tax or invoice-related violations

This Decree sets out regulations on administrative penalties for tax or invoice-related violations, aside from administrative violations related to fees and charges; administrative violations related to taxes on exported or imported goods of which collection is managed by customs authorities and violations against regulations on tax registration procedures, notification of temporary business suspension or premature business continuation conducted with business registration.

In comparison with the present regulations, the maximum fine levels imposed on administrative penalties for tax or invoice-related violations usually are not changed. Particularly, in the tax field, they may be VND 200 million (for organizations) and VND 100 million (for individuals); within the invoice field, they’re VND 100 million (for organizations) and VND 50 million (for folks).

However, this Decree adds some new acts thought to be “using illegal invoices” such as: using e-invoices which aren’t registered with any tax authority; using e-invoices of which tax authority’s codes haven’t been granted according to regulations; usage of invoices together with the invoicing date following the date where a tax authority determines that the seller just isn’t doing work on the address registered using a competent regulatory authority, etc.

These acts are thought to become “illegally using invoices”: using invoices that won’t contain all compulsory contents as prescribed; using invoices with discrepancies in amounts purchased services or goods rendered, or discrepancies in required data fields between an invoice’s copies.

Any administrative violation with all the underpaid amount of taxes, the evaded tax amount, the higher-than-prescribed volume of tax exemption, reduction or refund which is at least VND 100 million, or even the value of services or goods rendered that’s no less than VND 500 million, should be determined as being a large-scale tax-related administrative violation.

Pertaining to invoice-related violation, any administrative violation involving at the very least 10 invoice numbers will probably be determined being a large-scale invoice-related administrative violation.

This Decree shall be effective from December 5th, 2020.

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