Decree No. 125/2020/ND-CP dated October 19th, 2020 from 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 associated with charges and fees; administrative violations linked to 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 to the actual regulations, the absolute maximum fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. Especially, inside the tax field, they are VND 200 million (for organizations) and VND 100 million (for those); from the invoice field, they are VND 100 million (for organizations) and VND 50 million (for people).

However, this Decree adds some new acts thought to be “using illegal invoices” like: utilization of e-invoices which are not registered with any tax authority; using e-invoices that tax authority’s codes haven’t been granted as outlined by regulations; use of invoices together with the invoicing date after the date which a tax authority determines the seller isn’t doing business at the address registered which has a competent regulatory authority, etc.

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

Any administrative violation with the underpaid amount of taxes, the evaded amount of taxes, the higher-than-prescribed volume of tax exemption, reduction or refund which is at least VND 100 million, or the price of services or goods rendered that’s a minimum of VND 500 million, should be determined as a large-scale tax-related administrative violation.

Regarding 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 be effective from December 5th, 2020.

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