Classify fines according to the number of invoices
The 4th draft of the Decree amending Decree 125/2020/ND-CP adds a regulation on penalties for failure to establish invoices at 5 levels, with the highest fine from 60 to 80 million VND.
At point b, clause 13, Article 1 of the Draft, the Ministry of Finance proposed to amend Clause 3, Article 24 of Decree 125/2020/ND-CP in the direction of classifying the fine for failure to establish invoices according to the quantity and nature of use of goods and services.
In case of not making invoices for goods and services used for promotional purposes, advertising, sample making, donation, exchange, payment of wages to employees or exporting goods in the form of lending, lending, or refund (except for domestically circulated goods for production) will be punished as follows:
From 1 to less than 10 invoices: a fine of 1 to 2 million VND.
From 10 to under 50 invoices: a fine of 2 to 10 million VND.
From 50 to under 100 invoices: a fine of 10 to 30 million VND.
From 100 bills or more: a fine of 30 to 50 million VND.
In case of not making invoices when selling goods or providing services according to regulations, the proposed penalty is as follows:
From 1 to less than 10 invoices: a fine of 2 to 10 million VND.
From 10 to under 20 invoices: a fine of 10 to 30 million VND.
From 20 to under 50 invoices: a fine of 30 to 50 million VND.
From 50 invoices or more: a fine of 60 to 80 million VND.
The classification and application of fines based on the number of invoices are regulated in detail to improve deterrence, while clearly distinguishing between the behavior of not making invoices internally within the business and the behavior of not making invoices when selling goods and providing services to customers.
Adding groups of subjects to be fined
In Clause 2, Article 1 of the Draft, the Ministry of Finance proposes to add three groups of subjects that may be subject to administrative sanctions in the field of taxes and invoices, including:
Organizations and individuals authorized by taxpayers to fulfill their tax obligations: if the authorized party violates the provisions of Decree 125/2020/ND-CP, they will be subject to penalties according to regulations.
Organizations and individuals are obliged to register, declare, and pay taxes on behalf of taxpayers: if administrative violations arise, organizations and individuals performing their obligations on behalf of others will also be subject to sanctions.
Formed units of multinational corporations: in case the corporation or tax authority assigns them to register, declare, and pay taxes on their behalf, if there are administrative violations, they will be punished according to the provisions of the Decree.
The above contents are being raised for comments in the 4th Draft to perfect legal regulations on administrative sanctions for violations in the field of taxes and invoices.
