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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, apart from administrative violations associated with fees and charges; administrative violations associated with taxes on exported or imported goods of 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 current regulations, the absolute maximum fine levels imposed on administrative penalties for tax or invoice-related violations usually are not changed. Especially, from the tax field, they may be VND 200 million (for organizations) and VND 100 million (for folks); inside the invoice field, these are VND 100 million (for organizations) and VND 50 million (for folks).

However, this Decree adds some new acts regarded as “using illegal invoices” like: using e-invoices which are not registered with any tax authority; using e-invoices that tax authority’s codes have yet to be granted based on regulations; use of invoices together with the invoicing date after the date on what a tax authority determines that this seller just isn’t doing work on the address registered with a competent regulatory authority, etc.

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

Any administrative violation with the underpaid tax amount, the evaded tax amount, the higher-than-prescribed quantity of tax exemption, reduction or refund which can be no less than VND 100 million, or the price of services or goods rendered that is at least VND 500 million, will be determined as a large-scale tax-related administrative violation.

Intended for invoice-related violation, any administrative violation involving at the very least 10 invoice numbers should be determined as a large-scale invoice-related administrative violation.

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

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