• Bengtson Hollis posted an update 3 months, 1 week ago

    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 associated with fees and charges; administrative violations related to 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 to the existing regulations, the utmost fine levels imposed on administrative penalties for tax or invoice-related violations are not changed. Particularly, from the tax field, they may be VND 200 million (for organizations) and VND 100 million (for individuals); from the invoice field, they’re VND 100 million (for organizations) and VND 50 million (for folks).

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

    These acts are viewed being “illegally using invoices”: usage of invoices that do not contain all compulsory contents as prescribed; usage of invoices with discrepancies in amounts taken care of goods or services rendered, or discrepancies in required data fields between an invoice’s copies.

    Any administrative violation together with the underpaid tax amount, the evaded tax amount, the higher-than-prescribed volume of tax exemption, reduction or refund that’s no less than VND 100 million, or perhaps the price of services or goods rendered which is at the very least VND 500 million, shall be determined being 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 a large-scale invoice-related administrative violation.

    This Decree shall work from December 5th, 2020.

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