On October 19, 2020, the Government issued Decree No. 125/2020/ND-CP on penalties
for administrative violations of tax and invoices. This Decree takes effect from December 5,
2020.
Accordingly, the principle of sanctioning administrative violations of tax and invoices will
be implemented as follows:
1. The sanctioning of administrative violations of taxes and invoices comply with the law on
tax administration and the law on handling of administrative violations.
2. Organizations and individuals will only be sanctioned for administrative violations of tax
and invoices when they commit acts of administrative violations of tax and invoices
according to the provisions of this Decree.
3. Organizations and individuals that commit many acts of administrative violation shall be
sanctioned for each violation, except the following cases:
a) In case the taxpayer incorrectly declares one or more items on the tax dossiers of the same
tax at the same time, the act of making false declaration in the case of tax procedure
sanction is only sanctioned for one act. incorrectly declaring the criteria on the tax dossier
with the highest fine bracket among the acts that have been carried out under the provisions
of this Decree and applying the violation aggravating circumstances many times;
b) If the taxpayer is late in submitting multiple tax declaration dossiers for multiple tax periods
at the same time but the same tax period, only one act of late submission of tax declaration
dossiers with the highest fine bracket in the number of acts that have been carried out under
the provisions of this Decree and repeatedly aggravated circumstances are applied.
If the late-filing tax declaration dossier is in the case of tax evasion, it shall be separated to
sanction the act of tax evasion;
c) If a taxpayer is late in submitting multiple notices or reports of the same type on invoices at
the same time, the taxpayer will be sanctioned for one act of late submission of notices and
reports on invoices with a high fine bracket. Most of the acts have been implemented in
accordance with this Decree and the aggravating circumstances are applied many times;
d) The acts of violation on illegal use of invoices or illegal use of invoices which are
sanctioned under Articles 16 and 17 of this Decree will not be sanctioned according to
Article 28 of this Decree.
4. In cases where in an administrative procedure there are many components of the dossier,
which are prescribed more than one act of administrative violation in this Decree, the
violating organization or individual shall be sanctioned for each act of violation.
5. For the same act of tax-related administrative violation or invoice, the fine level for an
organization is equal to 2 times of the fine level for an individual, minus the fine level for
the act specified in Article 16. Article 17 and Article 18 of this Decree.