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, except for administrative violations related to charges and fees; 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.
When compared to the existing regulations, the absolute maximum fine levels imposed on administrative penalties for tax or invoice-related violations aren't changed. Specifically, from the tax field, they may be VND 200 million (for organizations) and VND 100 million (for those); in the invoice field, these are VND 100 million (for organizations) and VND 50 million (for individuals).

However, this Decree adds new acts regarded as “using illegal invoices” for example: usage of e-invoices that 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 with the invoicing date following the date where a tax authority determines how the seller just isn't doing business with the address registered having a competent regulatory authority, etc.
These acts are considered to be “illegally using invoices”: using invoices that won't contain all compulsory contents as prescribed; use 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 all the underpaid amount of taxes, the evaded amount of taxes, the higher-than-prescribed quantity of tax exemption, reduction or refund which is at least VND 100 million, or even the valuation on goods or services rendered that's at least VND 500 million, should be determined being a large-scale tax-related administrative violation.
With regard to invoice-related violation, any administrative violation involving at least 10 invoice numbers will be determined being a large-scale invoice-related administrative violation.
This Decree shall be effective from December 5th, 2020.
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