ISSUING MANY INVOICES AT THE WRONG TIME WILL BE FINED ONE TIME OR FOR EACH INVOICE? HOW MANY YEARS IS THE STATUTE OF LIMITATION FOR ADMINISTRATIVE VIOLATIONS RELATED TO INVOICES?

Issuing many invoices at the wrong time will be fined once or for each invoice? How many years is the statute of limitations for administrative violations related to invoices? In which cases are administrative violations related to taxes and invoices not punished? Through today’s article, let’s find out with Pham Consult!

Pursuant to Article 9 of Decree 123/2020/ND-CP, it is stipulated that:

Time of invoice issuance

1. The time of invoice issuance for the sale of goods (including the sale of state assets, confiscated assets, assets confiscated to the state budget and the sale of national reserve goods) is the time of transfer of ownership or right to use the goods to the buyer, regardless of whether the money has been collected or not.

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According to the above regulations, the time of invoice issuance is the time of transfer of ownership and use rights to the buyer, that is, the time of delivery. If the company issues an invoice after this time, it will be subject to administrative sanctions according to Article 24 of Decree 125/2020/ND-CP.

Article 5 of Decree 125/2020/ND-CP stipulates:

Principles for sanctioning administrative violations of tax and invoices

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3. Organizations and individuals committing multiple administrative violations shall be sanctioned for each violation, except for the following cases:

a) In the case of a taxpayer declaring one or more indicators incorrectly on tax records of the same tax, the act of incorrect declaration falling under the case of sanctioning tax procedures shall only be sanctioned for one act of incorrect declaration of an indicator on the tax record with the highest fine bracket among the acts committed according to the provisions of this Decree and applying the aggravating circumstance of multiple administrative violations times;

b) In case the taxpayer is late in submitting many tax declarations for many tax periods but the same tax, he/she will only be penalized for one act of late submission of tax declarations with the highest fine among the acts performed according to the provisions of this Decree and the aggravating circumstance of repeated administrative violations will be applied.

In case the late tax declarations include late tax declarations that are cases of tax evasion, they will be separated to be penalized for tax evasion;

c) In case the taxpayer is late in submitting many notifications and reports of the same type on invoices at the same time, the taxpayer will be penalized for one act of late submission of notifications and reports on invoices with the highest fine among the acts performed according to the provisions of this Decree and the aggravating circumstance of repeated administrative violations will be applied;

d) Violations of using illegal invoices or using illegal invoices that are subject to penalties under Articles 16 and 17 of this Decree shall not be subject to penalties under Article 28 of this Decree.

According to the above provisions, the issuance of multiple invoices at the wrong time will be subject to penalties for each invoice because it does not fall under the case of applying the circumstance of multiple administrative violations under Points a to d, Clause 3, Article 5 above.

Based on Article 9 of Decree 125/2020/ND-CP, the following cases are not subject to penalties for administrative violations of invoices:

– Administrative violations of tax and invoices shall not be subject to penalties for cases where administrative violations are not subject to penalties under the provisions of the law on handling administrative violations.

Taxpayers who are late in performing tax procedures and invoices electronically due to technical problems of the information technology system announced on the Electronic Information Portal of the tax authority are cases of committing violations due to force majeure events as prescribed in Clause 4, Article 11 of the Law on Handling of Administrative Violations.

– No administrative penalties for tax violations, no late payment fees for taxpayers who commit tax administrative violations due to implementation of guidance documents and handling decisions of tax authorities and competent state agencies related to the content of determining the taxpayer’s tax obligations (including guidance documents and handling decisions issued before the effective date of this Decree), except in cases where tax inspections and examinations at the taxpayer’s headquarters have not yet detected errors by the taxpayer in declaring and determining the amount of tax payable or the amount of tax exempted, reduced or refunded, but then the taxpayer’s tax administrative violations are discovered.

– No administrative penalty for tax violations shall be imposed in cases of incorrect declaration, where the taxpayer has supplemented the tax declaration and voluntarily paid the full amount of tax payable before the time the tax authority announces the decision to conduct a tax audit or inspection at the taxpayer’s headquarters or before the tax authority discovers that the tax audit or inspection at the taxpayer’s headquarters has not been conducted or before another competent authority discovers.

– No penalties for violations of tax procedures for individuals directly settling personal income tax who are late in submitting personal income tax settlement dossiers and have tax refunds; business households and business individuals who have been taxed according to the provisions of Article 51 of the Law on Tax Administration.
– No penalties for violations of the deadline for submitting tax declaration dossiers during the period when taxpayers are granted an extension to submit tax declaration dossiers.

How many years is the statute of limitations for administrative violations related to invoices?
Pursuant to Article 8 of Decree 125/2020/ND-CP amended by Clause 1, Article 1 of Decree 102/2021/ND-CP, the statute of limitations for administrative violations related to invoices is 02 years.
Statute of limitations for administrative violations related to taxes and invoices; the period considered not to have been penalized; time limit for tax collection
1. Statute of limitations for handling administrative violations related to invoices
a) Statute of limitations for handling administrative violations related to invoices is 02 years.
b) The time for calculating the statute of limitations for handling administrative violations related to invoices is stipulated as follows:
For administrative violations currently being carried out as prescribed in Point c of this Clause, the statute of limitations shall be calculated from the date the competent person performing official duties discovers the violation.
For administrative violations that have ended as prescribed in Point d of this Clause, the statute of limitations shall be calculated from the date the violation ends.

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