Decree No. 125/2020/ND-CP dated October 19th, 2020 of 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 charges and fees; administrative violations in connection 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.

In comparison with the current regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. Especially, inside the tax field, they’re VND 200 million (for organizations) and VND 100 million (for people); inside the invoice field, these are VND 100 million (for organizations) and VND 50 million (for individuals).

However, this Decree adds some new acts considered to be “using illegal invoices” for example: usage of e-invoices who are not registered with any tax authority; use of e-invoices that tax authority’s codes have not yet been granted in accordance with regulations; using invoices together with the invoicing date after the date which a tax authority determines that this seller is not doing work on the address registered using a competent regulatory authority, etc.

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

Any administrative violation together with the underpaid tax amount, 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 valuation on services or goods rendered which is no less than VND 500 million, will probably be determined being a large-scale tax-related administrative violation.

Regarding invoice-related violation, any administrative violation involving no less than 10 invoice numbers shall be determined as a large-scale invoice-related administrative violation.

This Decree shall work from December 5th, 2020.

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