Regulations on penalties for illegal purchase and use of invoices

According to current law, acts of illegally buying, selling invoices, using illegal invoices, or illegally using invoices, depending on the nature and severity of the violation, may be subject to administrative penalties or criminal prosecution.

The handling of administrative violations related to real invoices is implemented according to relevant regulations in Decree No. 125/2020/NSS-CP dated October 19, 2020 of the Government regulating the handling of administrative violations related to taxes and invoices (amended and supplemented by Decree No. 102/2021/ND-CP). Specifically:

- First: The act of giving or selling invoices will be punished according to Article 22, Decree No. 125/2020 of the Government with a fine from 15,000,000 to 45,000,000 VND. Remedial measures: Forced destruction of invoices, forced return of illegal profits.

- Second: For the act of using illegal invoices, illegally using invoices will be punished according to Article 4, Article 28, Decree No. 125/2020 with a fine from 20,000,000 to 50,000,000 (except for the case of using illegal invoices, illegally using invoices that increases the amount of tax payable, increases the amount of tax exempted, reduced, refunded, which will be subject to tax penalties according to the provisions of Article 16, Article 17, this Decree). The remedy 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, reducing the amount of tax payable or increasing the amount of tax refunded, the amount of tax exempted or reduced, but when the tax authority inspects and checks, it is discovered that the buyer proves that the violation belongs to the seller and the buyer has fully accounted for the accounting according to regulations, they will be punished according to Article 15, Decree No. 125/2020 of the Government with a fine of 20% of the under-declared tax amount or the refunded tax amount higher than the regulations.

- Fourth: For the act of using illegal invoices, illegally using invoices to declare taxes to reduce the amount of tax payable or increase the amount of tax refunded, the amount of tax exempted or reduced, determined as tax evasion but not to the extent of being prosecuted for criminal liability according to Article 200, Penal Code, will be punished according to Article 17, Decree No. 125/2020 with a fine of 1 to 3 times the amount of tax evaded, depending on the nature and severity of the violation (the fine increases gradually according to the aggravating circumstances of the violation).

Remedial measures: Force to pay the full amount of evaded money to the State budget, force to readjust the deductible input VAT amount on the tax records (if any).

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