PENALTIES FOR VIOLATIONS ON CANCELLATION, DESTRUCTION OF ELECTRONIC INVOICES

PENALTIES FOR VIOLATIONS ON CANCELLATION, DESTRUCTION OF ELECTRONIC INVOICES

Electronic invoices used in the operations of organizations and individuals must comply with the legal provisions. Violations concerning the utilization of electronic invoices, including violations of cancellation, destruction of electronic invoices, may result in legal sanctions.

1. What is an electronic invoice?

An electronic invoice is an invoice with or without a tax authority code, presented in electronic data declared by organizations and individuals selling goods or providing services to record information about the sale of goods or the provision of services according to the regulations of laws on accounting and tax by electronic means. This includes situations in which invoices are generated through electronic data transfer connections to the tax authority from cash registers.

2. Form of electronic invoice:

– Value-added invoice;

– Sales invoice;

– Electronic stamp;  

– Electronic tickets;

– Electronic card;  

– Electronic receipt;

– Electronic delivery and shipping notes; or

– Electronic documents with other names.

3. Mandatory use of electronic invoices

Electronic invoices will be mandatorily used to replace paper invoices from July 1, 2022.

>> WHEN TO APPLY FOR A FOREIGN LOAN? https://linconlaw.vn/when-to-apply-for-a-foreign-loan/

>> PERSONAL INCOME TAX FROM RECEIVING DIVIDENDS, FOR FOREIGN INVESTORS AS NON-RESIDENT, HOW TO PAY? https://linconlaw.vn/personal-income-tax-from-receiving-dividends-for-foreign-investors-as-non-resident-how-to-pay/

4. Violations of cancellation, destruction of electronic invoices and handling measures

Pursuant to Article 27 of Decree 125/2020/ND-CP:

i.        Penalties in the form of cautions shall be imposed for the act of cancelling or destroying invoices from 1 to 5 days after expiry of the regulated time limit under mitigating circumstances.

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

–        Cancelling invoices released but not issued, or invalidated invoices, in breach of regulations;

–        Failing to cancel invoices released but not issued yet, or invalidated invoices, or failing to cancel invoices purchased from tax authorities but expired;

–        Cancelling or destroying invoices from 1 to 10 working days after expiry of the regulated time limit, except the case prescribed in (i).

iii.      Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

–        Cancelling or destroying invoices at least 11 working days after expiry of the regulated time limit;

–        Failing to cancel or destroy invoices in accordance with laws;

–        Failing to cancel e-invoices containing defects after being issued after expiry of the time limit for tax authorities’ issuing notification of these defects to sellers;

–        Failing to cancel externally ordered invoices not released yet but no longer used according to regulations;

–        Cancelling or destroying invoices in breach of procedures or processes prescribed by laws;

–        Destroying invoices though these invoices are not classified as those subject to destruction under laws.

Legal basis:

  • Law on Tax Administration No. 38/2019/QH14;  
  • Decree 125/2020/ND-CP regulate penalties for administrative violations of taxes and invoices;
  • Decree 123/2020/ND-CP regulate invoices and documents.

𝐋𝐈𝐍𝐂𝐎𝐍 𝐋𝐀𝐖 𝐅𝐈𝐑𝐌 – 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐜𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧

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