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, with the exception of administrative violations associated with fees and charges; administrative violations linked to taxes on exported or imported goods that 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 with the present regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations are certainly not changed. In particular, inside the tax field, they’re VND 200 million (for organizations) and VND 100 million (for individuals); from the invoice field, these are VND 100 million (for organizations) and VND 50 million (for those).

However, this Decree adds new acts considered to be “using illegal invoices” including: use of e-invoices which are not registered with any tax authority; usage of e-invoices of which tax authority’s codes have yet to be granted in accordance with regulations; usage of invoices together with the invoicing date following the date on which a tax authority determines that the seller isn’t conducting business on the address registered which has a competent regulatory authority, etc.

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

Any administrative violation using the underpaid amount of taxes, the evaded amount of taxes, the higher-than-prescribed amount of tax exemption, reduction or refund which can be a minimum of VND 100 million, or even the price of goods or services rendered which can be no less than VND 500 million, will be determined 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 be determined as a large-scale invoice-related administrative violation.

This Decree shall take effect from December 5th, 2020.

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