What penalties shall be imposed on false release of invoices?

Before releasing invoices, enterprises need to thoroughly understand the regulations to avoid mistakes and penalties from inspection, examination authorities. Pursuant to Article 23, Decree 125/2020/ND-CP of the Government, violations against regulations on release of invoices shall be penalized as follows:

1. Fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for one of the following violations:

a) Submitting notices of modification of information contained in notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, from 10 to 20 days after the date on which invoices start being used at new addresses, or newly-named invoices start being used;

b) Submitting statements of unused invoices to receiving tax authorities in case of any change of business address entailing any change to such tax authorities for a period from 10 to 20 days after the prescribed submission deadline which starts from the date on which invoices are used at their new addresses;

c) Using invoices mentioned in notices of invoice release sent to tax authorities though they are not due for use.

2. Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for one of the following violations:

a) Issuing notices of invoice release whose contents have been found as incomplete as those prescribed in regulations by tax authorities, and informing entities or persons in writing of this to request necessary modifications to be made if these entities or persons issue invoices to their clients even when failing to comply with the written notices requesting such modifications;

b) Failing in the posting of invoice release as required by laws;

c) Submitting the notices of revision of information contained in the notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, for the period of at least 21 days after the prescribed submission deadline which begins on the date on which invoices start being used at new addresses, or newly-named invoices start being used;

d) Submitting statements of unused invoices to new receiving tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities for a period from 10 to 20 days after the prescribed submission deadline which begins from the date on which invoices start being used at new addresses.

3. Fines ranging from VND 6,000,000 to VND 18,000,000 shall be imposed for any act of failing to make notices of release of invoices before use if these invoices are connected with economic transactions that arise, and on which taxes have been declared or paid, or to which tax declaration or payment obligations have not yet been due as per laws.

In cases where notices of release of invoices have not yet been issued before these invoices start being used, and these invoices are not connected with economic transactions arising or on which taxes have not yet been declared after the prescribed tax declaration or payment due dates, violators shall be subject to penalties prescribed in Article 28 herein or Article 16 and 17 of Chapter II herein.

4. Remedies: Compelling the implementation of the statutory procedures for release of invoices with respect to the acts specified in clause 2 and 3 of this Article.

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 concern, please contact Vinasc’s Customer Care department for timely support.