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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, except for administrative violations in connection with charges and fees; administrative violations linked to 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 with the existing regulations, the absolute maximum fine levels imposed on administrative penalties for tax or invoice-related violations aren’t changed. Particularly, within the tax field, they are VND 200 million (for organizations) and VND 100 million (for those); in the invoice field, they are VND 100 million (for organizations) and VND 50 million (for individuals).

However, this Decree adds newer and more effective acts considered to be “using illegal invoices” like: use of e-invoices who are not registered with any tax authority; use of e-invoices that tax authority’s codes have yet to be granted based on regulations; usage of invoices using the invoicing date after the date on which a tax authority determines that this seller isn’t doing business in the address registered using a competent regulatory authority, etc.

These acts are considered to become “illegally using invoices”: usage of invoices that do not contain all compulsory contents as prescribed; using 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 with all the underpaid amount of taxes, the evaded amount of taxes, the higher-than-prescribed volume of tax exemption, reduction or refund which can be at least VND 100 million, or the valuation on goods or services rendered which can be at least VND 500 million, will be determined being a large-scale tax-related administrative violation.

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

This Decree shall work from December 5th, 2020.

More information about sanctioning administrative violations on invoices check out this site