With the purpose of deducting input value-added tax, reducing tax obligations, and legalizing floating goods, many businesses have engaged in the act of buying and selling invoices. The General Department of Taxation affirms that this illegal act not only causes loss of revenue to the State budget but also affects a healthy business environment.

Regarding sanctions for administrative violations

The sanctioning of administrative violations on invoices is carried out in accordance with the relevant regulations in Decree No. 125/2020/ND-CP dated October 19, 2020 of the Government stipulating the sanctioning of administrative violations on taxes, invoice (amended and supplemented in Decree No. 102/2021/ND-CP dated November 16, 2021), specifically:

Firstly, the act of giving or selling invoices will be punished according to Article 22 of Decree No. 125/2020/ND-CP dated October 19, 2020 with a fine from 15 million VND to 45 million VND.

The remedial measure is to force the invoice to be canceled and to return the illegally obtained profits.

Second, for the act of using illegal invoices, illegal use of invoices will be penalized according to Article 4, Article 28 of Decree No. 125/2020/ND-CP dated October 19, 2020 with a fine. Fine from 20 million VND to 50 million VND (except for cases of illegal use of invoices, illegal use of invoices that increase the amount of tax payable, increase the amount of tax exempted, reduced, or refunded). tax penalties according to the provisions of Article 16 and Article 17 of this Decree).

The remedial measure is to force the cancellation of used invoices.

Third, for the act of using illegal invoices to account for the value of purchased goods and services, which reduces the amount of tax payable or increases the amount of tax refunded, the amount of tax exempted or reduced but When the tax authority inspects and checks and discovers that the buyer can prove that the seller is at fault for the violation and that the buyer has fully accounted for it according to regulations, he or she will be fined according to Article 16 of Decree No. 125/ 2020/ND-CP with a penalty of 20% of the under-declared tax amount or the refunded tax amount is higher than prescribed.

The remedial measure is to force the full payment of the tax deficiency, the refunded tax amount higher than prescribed and the late payment of tax to the State Budget; forced to re-adjust the amount of input value added tax to be deducted for the next period (if any).

Fourth, for illegal use of invoices; Illegally using invoices to declare taxes reduces the amount of tax payable or increases the amount of tax refunded, the amount of tax exempted or reduced is determined to be an act of tax evasion but not to the extent of being prosecuted for criminal liability under Article 200 of the Penal Code will be punished according to Article 17 of Decree No. 125/2020/ND-CP dated October 19, 2020 with a fine from 1 to 3 times the amount of tax evaded, depending on the nature and severity of the violation. (fines gradually increase according to the aggravating circumstances of the violation).

The remedial measure is to force the full amount of evaded tax to be paid into the State Budget; Force to readjust the deductible input value-added tax amount on tax records (if any).

Regarding criminal proceedings

According to the 2015 Penal Code (amended in 2017), the act of using illegal invoices to account for goods and input materials in activities that generate tax obligations reduces the amount of tax payable or increases the amount of exempted tax, the amount of tax to be reduced or increases the amount of tax to be deducted, or the amount of tax to be refunded to the point where criminal liability will be prosecuted for tax evasion (Article 200).

And the act of illegally buying and selling invoices to the point of being prosecuted for criminal liability will be handled for the crime of illegally printing, issuing, buying and selling invoices and documents for collection and payment to the State Budget (Article 203).

Based on the above regulations, basically, there are administrative and criminal sanctions for acts of illegally buying and selling invoices, using illegal invoices, and illegally using invoices. has been specifically and fully regulated in the legal system for handling administrative violations and criminal law according to the nature, level and scale of the violation.

The act of using illegal invoices constitutes the crime of tax evasion

Will be prosecuted and tried for tax evasion as prescribed in Article 200 of the 2015 Penal Code (amended and supplemented in 2017):

If you are an individual, you will be tried with 3 main penalty frames, with a fine ranging from 100 million VND to 4.5 billion VND or a term of imprisonment from 3 months to 7 years.

Offenders can also be fined from 20 million VND to 100 million VND, banned from holding certain positions, practicing certain occupations or doing certain jobs for 1 to 5 years, or having part or all of their assets confiscated.

If it is a commercial legal entity, it will be tried with 4 main penalty ranges: Fine from 300 million VND to 10 billion VND; or suspend operations for a period of 6 months to 3 years or suspend operations permanently.

Commercial legal entities can also be fined from 50 million VND to 200 million VND, banned from doing business, banned from operating in certain fields or banned from raising capital from 1 year to 3 years.

The act of illegally buying and selling invoices constitutes the crime of illegally buying and selling invoices

Will be prosecuted and tried for the crime of illegally printing, issuing, trading in invoices and state budget remittance documents according to the provisions of Article 203 of the 2015 Penal Code (amended and supplemented in 2017).

If an individual is tried, there are 2 main penalty frames: a fine from 50 million VND to 500 million VND or non-custodial reform for up to 3 years or imprisonment from 6 months to 5 years.

Offenders can also be fined from 10 million VND to 50 million VND, banned from holding positions, practicing certain occupations or doing certain jobs for 1 to 5 years.

If it is a commercial legal entity, it will be tried with two main penalty ranges: Fine from 100 million VND to 1 billion VND; or permanently suspend operations.

Commercial legal entities can also be fined from 50 million VND to 200 million VND, banned from doing business, banned from operating in certain fields from 1 year to 3 years or banned from raising capital from 1 year to 3 years. .