• Holme McFadden posted an update 3 months, 3 weeks ago

    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, except for administrative violations linked to charges and fees; administrative violations associated with taxes on exported or imported goods 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.

    When compared to the present regulations, the most fine levels imposed on administrative penalties for tax or invoice-related violations usually are not changed. Particularly, in the tax field, these are VND 200 million (for organizations) and VND 100 million (for individuals); in the invoice field, they’re VND 100 million (for organizations) and VND 50 million (for people).

    However, this Decree adds newer and more effective acts thought to be “using illegal invoices” such as: use of e-invoices who are not registered with any tax authority; usage of e-invoices ones tax authority’s codes haven’t been granted in accordance with regulations; using invoices together with the invoicing date following the date on what a tax authority determines the seller isn’t doing work in the address registered which has a competent regulatory authority, etc.

    These acts are thought to get “illegally using invoices”: usage of invoices that will not contain all compulsory contents as prescribed; utilization of invoices with discrepancies in amounts taken care of goods or services rendered, or discrepancies in required data fields between an invoice’s copies.

    Any administrative violation with the underpaid amount of taxes, the evaded tax amount, the higher-than-prescribed level of tax exemption, reduction or refund that is at the very least VND 100 million, or the value of services or goods rendered which is a minimum of VND 500 million, shall be determined like a large-scale tax-related administrative violation.

    Pertaining to invoice-related violation, any administrative violation involving a minimum of 10 invoice numbers will be determined as being a large-scale invoice-related administrative violation.

    This Decree shall work from December 5th, 2020.

    For additional information about sanctioning administrative violations on invoices you can check this popular web page