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, apart from administrative violations linked to fees and charges; administrative violations associated with 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.

In comparison with the present regulations, the most fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. Specifically, from the tax field, they may be VND 200 million (for organizations) and VND 100 million (for folks); from 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 considered to be “using illegal invoices” like: using e-invoices which are not registered with any tax authority; use of e-invoices of which tax authority’s codes have not yet been granted based on regulations; usage of invoices with the invoicing date as soon as the date which a tax authority determines the seller is not doing business on the address registered with a competent regulatory authority, etc.

These acts are believed being “illegally using invoices”: utilization of invoices that won’t contain all compulsory contents as prescribed; use 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 with all the underpaid tax amount, the evaded tax amount, the higher-than-prescribed quantity of tax exemption, reduction or refund which can be at the very least VND 100 million, or the value of goods or services rendered that is no less than VND 500 million, shall be determined like a large-scale tax-related administrative violation.

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

This Decree shall work from December 5th, 2020.

For details about sanctioning administrative violations on invoices go to our new website