DETERMINING INVOICES ISSUED AT THE WRONG TIME AND ADMINISTRATIVE PENALTIES

– Pursuant to Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government prescribing invoices and records:

Article 4 prescribes the rules for issuance, management and use of invoices and records:

“1. When selling goods or providing services, the seller shall issue and send invoices to buyers (including goods/services used for sales promotion, advertising or as samples, goods/services gifted, donated, exchanged or used as salary payment to employees and internal use (except goods which are internally rotated in production process), and goods rented, lent or returned). Such invoices shall have adequate contents written according to the provisions in Article 10 hereof, except e-invoices which must follow the standard format prescribed by tax authorities as prescribed in Article 12 hereof…”.

Article 13 prescribes the use of e-invoices in sale of goods and provision of services:

“… 3. Application of e-invoices, delivery and internal transfer notes, and delivery notes for goods sent to sales agents in some cases:

… c) Use of electronic VAT invoices by exporters declaring and paying VAT by following credit-invoice method (including export processors).

When exporting goods for transport to the border gate or to the place where export procedures are carried out, use delivery and internal transfer notes according to regulations as a document for circulation of goods on the market. After completing procedures for exported goods, issue VAT invoices for exported goods…”.

– Pursuant to Decree No. 125/2020/ND-CP dated October 19, 2020 of the Government regulating administrative penalties for tax or invoice-related violations:

Article 24 stipulates penalties for violations against regulations on issuance of invoices upon sale of goods or provision of services:

“1. Cautions shall be given as a form of penalty imposed for the following violations:

a) Issuing invoices at the wrong time, but not to the extent of causing any deferred fulfillment of tax obligations, under any mitigating circumstance;

… 3. Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for any act of issuing invoices at the wrong time, but not to the extent of causing any deferred payment of tax obligations, except as prescribed in point a of clause 1 of this Article.

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

a) Issuing invoices at the wrong time in breach of laws on invoices for sale of goods or provision of services, except as provided in point a of clause 1 and 3 of this Article;…”.

Pursuant to the above regulations, in case companies have exported goods and services (including export processors), when exporting goods and services shall issue an electronic VAT invoice according to the provisions of Point c, Clause 3, Article 13 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government.

In case the company violates regulations on making invoices at the wrong time when selling goods and services, it will be punished according to the provisions of Article 24 of Decree No. 125/2020/ND-CP dated October 19, 2020 of the Government.