Regulations on sanctioning administrative violations of tax and invoices

Recently, the Government has issued Decree No. 125/2020/ND-CP regulating the sanctioning of administrative violations on tax and invoices. The Decree taken effect from December 5, 2020. Decree No. 125/2020/ND-CP was born with many expectations to increase the effectiveness and efficiency of tax administration to prevent loss of tax revenue, reduce tax debts, and collect properly and promptly tax money on the state budget. Compared with the old guiding documents, Decree 125/2020/ND-CP has some new points as follows:

First, subjects of punishment

Under Clause 1, Article 3 of Decree No. 125/2020/ND-CP are supplemented with the sanctioning subjects.

+ In case the taxpayer authorizes another organization or individual, the authorized party must also have the taxpayer’s obligations and responsibility for tax registration, declaration, and payment. If the authorized party commits an act of administrative violation specified in this, the authorized organization or individual is subject to be sanctioned.

+ In cases where organizations or individuals are obliged to register, declare and pay tax on behalf of taxpayers but they declare and pay taxes on behalf of their administrative violations, the organizations or individuals shall declare and pay tax on behalf of the sanctioned administrative tax violation.

Second, sanctioning tax-related administrative violations:

– Tax registration deadline violation (Article 10):

+ The fine level for violations of the time limit on tax registration is 1,000,000 VND to 10,000,000 VND. The increase compared with the old fine of 400,000 VND to 2,000,000 VND.

+ Additional penalties for violations of the time limit for notification of business suspension, a notice of continuing business ahead of time.

– Violation of the deadline for notification of information changes in tax registration (Article 11):

+ Stipulating two acts of violation, including Notifying changes to tax registration contents 1 to 30 days behind schedule but not changing the tax registration certificate or notifying tax identification numbers with details. mitigating and notifying changes in tax registration content 1 day to 10 days behind schedule, causing changes to the tax registration certificate or notification of tax identification numbers with extenuating circumstances.

+ The fine level for violation of the time limit for notifying information in tax registration is 500,000 VND to 7,000,000 VND. The increase compared with the old fine of 400,000 VND to 2,000,000 VND.

+ Additional remedial measures for failure to notify or notify changes in tax registration content 91 days or more behind schedule, resulting in changes in tax registration certificates or code notices for the tax amount, it is forced to submit the dossier for change of tax registration content.

Third, sanctioning administrative violations on invoices

– Change regulations on self-printing invoices and creating e-invoices. 1 Separate Law regulates sanctions on violations to regulations on groups of violations.

– Reduce the fine for the act of “not making general invoices”. Specifically, Clause 2, Article 24 of Decree 125/2020/ND-CP stipulates the fine level for this act is 500,000 VND to 1,500,000 VND. The decrease in comparison with the old Law is 4,000,000 VND to 8,000,000 VND.

– To annul the sanctioned term for the act of “not liquidating the printing contract if it is past the contract liquidation deadline specified in the invoice printing contract or the contract termination time when the notice of issuance is made invoice in the new Decree.

– Adding provisions on the violation of the time limit for reporting loss, fire, or damage of invoices (Article 25)

– Adjusting to reduce the fine for the act of “not declaring the loss of invoices while printing, before delivering to customers”. Specifically, according to the new regulation, the fine for this behavior is 4,000,000 VND to 8,000,000 VND. The decrease compared to the old Law is from 6,000,000 VND to 18,000,000 VND.

– Add provisions on handling warnings for the act of submitting notices and reports on invoices 1 to 5 days behind the prescribed time limit, from the date of expiration of the prescribed time limit with extenuating circumstances. At the same time, increase the fine level for the act of making false or incomplete contents of the notice or report on an invoice according to regulations sent to the tax agency from 200,000 VND to 1,000,000 VND to 1,000,000 VND to 3,000 VND. 000 VND.

Fourth, the competence and procedures to sanction administrative violations of taxes and invoices

– Abolishing regulations on the competence to impose fines of tax officers; President of the People’s Committee of the commune.

– Detailed regulations on the competence to sanction hunger for each tax-related administrative violation and specific invoices.

– To add regulations on the cases in which the right to explain tax-related administrative violations and invoices, including the acts of tax-related administrative violations, invoices discovered through tax inspection, tax examination or cases of making records of electronic administrative violations; administrative violations specified in Articles 16, 17, 18; Clause 3, Article 20; Clause 7 of Article 21; Article 22 and Article 28 of Decree 125/2020/ ND-CP.

– Add regulations on the delivery and sending of decisions to sanction administrative violations of tax and invoices electronically according to the taxpayer’s address registered with the tax agency, in case individuals and organizations suffer from sanction eligible for electronic transactions in the tax domain.

– Amend regulations on subjects and cases exempted from fines, specifically: Exemption of fines for administrative violations of tax, invoices for taxpayers (including individuals and organizations) will be sanctioned. an administrative tax violation, an invoice will suffer material damage in case of force majeure due to: encountering a natural disaster, a disaster or an epidemic; war, riot, strike must stop, stop production or business or risks do not fall under the cause, subjective responsibility of taxpayers but taxpayers cannot afford to pay financial resources to the state budget.


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