What penalties are imposed on the acts of losing, burning, or damaging invoices?
Enterprises have the responsibility to keep invoices and vouchers intact as the loss, burning or damage of invoices can cause enterprises to be sanctioned pursuant to Article 26, Decree 125/2020/ND-CP:
1. Cautions shall be given as a form of the penalty imposed for the following violations:
a) Causing the loss, burning or damage of issued invoices (except the replicas intended for clients) during use, or of invoices already used for tax declaration or payment purposes, even though documents or records evidencing the sale of goods or the provision of services exist and such violation is committed under mitigating circumstances;
b) Causing the loss, burning, or damage of invoices with incorrect or deleted information though sellers issue other replacement invoices.
2. Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for the act of causing the loss, burning, or damage of issued invoices (the replicas intended for clients) during use although sellers have already declared or paid taxes based on these invoices, or have had documents or records evidencing the sale of goods or the provision of services, and such violation is committed under mitigating circumstances.
If such loss, burning, or damage takes place through the buyer’s fault, both the seller and the buyer must keep a record of such incidents.
3. Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:
a) Causing the loss, burning, or damage of invoices already released or purchased from tax authorities even though they have not been issued yet;
b) Causing the loss, burning, or damage of issued invoices (the replicas intended for clients) during use although sellers have already declared or paid taxes, or have had documents or records evidencing the sale of goods or the provision of services.
If such loss, burning, or damage takes place through the buyer’s fault, both the seller and the buyer must keep a record of such incidents.
4. Fines ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for the act of causing the loss, burning, and damage of issued invoices, or invoices already submitted for completion of tax declaration or payment procedures, or those are in use or storage, except the cases specified in clause 1, 2 and 3 of this Article.
5. In the cases of loss, burning, or damage of invoices prescribed in clause 2 and point b of clause 3 of this Article which is caused through the third party’s fault, if the third party performs transactions with the seller, then the seller shall be sanctioned; if the third party performs a transaction with the buyer, then the buyer shall be sanctioned.
The seller or the buyer and the third party must make a report on the loss, burning, or damage of invoices.
As an established company in the field of tax and legal consulting, Vinasc hopes to adequately inform our customers to help them mitigate the risk during operation in Vietnam. Should there be any further concerns, please contact Vinasc’s Customer Care department for timely support.