In business, invoicing is an important part of the transaction process. However, if a company or individual selling goods does not issue invoices, it can lead to violations of the law and unwanted consequences. Please read the following article “Is it okay to set up a company but do not issue invoices?” by Viet My.
Apply Article 9 of Decree 123/2020/ND-CP on the time of invoice issuance in each specific case as follows:
| Numerical order | Case | Time of invoice |
| 1 | Sale of goods (including state assets, confiscation, state fund addition, sale of state reserves) | The moment when ownership or right to use goods is transferred to the buyer, whether or not the buyer has received payment. |
| 2 | Service Provider | This is the point in time when the service has been completed, regardless of whether payment has been received or not. |
| In case the service provider collects money before or during the service, the time of invoice issuance is the time of collection. | ||
| 3 | Multiple deliveries or individual product or service deliveries, each stage | Invoice each delivery or handover. |
| 4 | When providing large volumes of services, as is often the case, it takes time to compare data between service providers and customers and partners. | The time for completing data coordination between the parties is the 7th day of the month following the month of service provision or at the latest 7 days after the end of the contract term. |
| Note: The term of the contract is the basis for calculating the quantity of goods and services provided based on the contract between the seller of goods, service provider and the buyer. | ||
| 5 | Telecommunications Services
Information technology services (including payment intermediary services using telecommunications and information technology platforms) must authenticate connection data between commercial service establishments. |
It is the time to review service fees of financial contracts between service providers but within 2 months from the month of subscription fee calculation. |
| Providing telecommunications services (including VAT-taxable telecommunications services) through the sale of prepaid cards does not allow customers to use the service without requesting a VAT invoice or providing their name, address, and tax code. Then, at the end of each daily or monthly period, service companies jointly issue VAT invoices detailing the total revenue of each service. Buyers do not receive invoices or do not provide their name, address, or tax code. | ||
| 6 | Construction and installation activities | is the time of receiving and handing over work, construction items, completed construction and installation volume, regardless of whether money has been collected or not. |
| 7 | Real estate business organization, infrastructure construction, housing construction for sale and transfer: | |
| In case ownership and usage rights have not been transferred: Money is collected according to project implementation progress or payment progress stated in the contract. | The invoice date is the date of collection or according to the payment agreement in the contract. | |
| If ownership or usage rights have been transferred | is when the ownership or right to use the goods is transferred to the buyer, whether or not the buyer has received the money. | |
| 8 | Business organizations purchase air freight services through websites and e-commerce systems | Invoices will be issued within five (5) consecutive days from the date the Aviation Service Profile is published on the website and e-commerce system. |
| 9 | Crude oil exploration, production, and processing activities (including government-sponsored disposal activities) | is the time when the buyer and seller determine the official selling price, regardless of whether the money has been received or not. |
| 10 | Sale of natural gas, associated gas and coal gas to buyers via pipelines | The invoice date is the date when the buyer and seller determine the monthly gas delivery quantity, but no later than 07 consecutive days from the date the seller sends the monthly gas delivery notice. |
| If the guarantee agreement and the Government commitment have different provisions on the settlement period, the provisions of the guarantee agreement and the Government commitment shall apply. | ||
| 11 | Commercial, retail or hospitality establishments that follow a branch system model that goes directly to consumers but bills for all business activities at their headquarters. | Finally, the business will rely on information from the bill of lading to issue electronic invoices for sales transactions, providing food and drinks during the day.
In case the customer requests an electronic invoice, the business will create an electronic invoice and deliver it to the customer. |
| 12 | For electricity sales on the electricity market | The time of electronic payment is determined based on the time of comparison of payment data between the Power Grid Operator and the Electricity Market, the power generation unit and the power purchase unit according to the regulations of the Ministry of Industry and Trade.
In addition, the power purchase contracts managed and approved by the Ministry of Industry and Trade must be signed at the end of the tax declaration and the tax payment deadline of the month in which the tax liability arises according to the provisions of the tax law. |
| For electricity sales activities of power generation companies with Government guarantee commitments at the time of payment, the time of electronic payment will be based on the Government guarantee, guidance and approval of the Ministry of Industry and Trade and the electricity purchase and sale contract signed between the buyer and seller of electricity. | ||
| 13 | Selling gasoline at the store to retail customers | is the end time of each sale. |
| Note: Traders selling gasoline to individuals or individual customers must ensure that electronic invoices are fully stored and can be viewed when authorized by a competent authority. | ||
| 14 | Providing air freight services, insurance services through agents | Time of completion of data reconciliation between the parties but no later than the 10th of the month following the month of birth. |
| 15 | Providing banking, securities, insurance and money transfer services via e-wallets as well as power distribution unit shutdown and restart services to non-business individual buyers who do not require invoices. | At the end of the day or month, the unit issues global invoices based on the details of each transaction that occurred during the day or month on the unit’s data management system. |
| The service provider shall be responsible for the accuracy of the transaction data and shall provide a detailed summary of the services provided upon request by the competent authority. If the customer requests an invoice for each transaction, the service provider shall send the invoice to the customer. | ||
| 16 | Taxi passenger transport company using accounting software | At the end of the trip, the company sends the trip information to the customer and transfers it to the tax authority as tax authority data. |
| The information includes: carrier name, license plate number, distance (km) and total amount the passenger must pay.
When the customer receives the electronic invoice, the customer updates or sends complete information (name, address, tax code) to the software or service provider. Based on the information the customer sends or updates, the company sends the travel invoice to the customer and simultaneously transfers the invoice information to the tax authority. |
||
| 17 | Medical facilities provide medical examination and treatment services using medical examination and treatment management software, hospital fee management and hospital fee accumulation software on the information technology system. | At the end of the day, the medical facility will base on the medical examination and treatment information as well as payment receipt information to synthesize and issue electronic invoices for medical services performed during the day.
If the customer requests an electronic invoice, the medical facility will create an electronic invoice and deliver it to the customer. |
| 18 | Electronic non-stop road toll collection | Invoice date is the date the vehicle passes through the toll station. |
| For customers who continuously use the electronic road toll collection service and use the same service multiple times a month on one or more vehicles, the service provider can issue periodic electronic invoices. Electronic invoices are issued on the last day of the month in which the toll collection service is provided. The invoice details each vehicle passing through the toll station, including the time the vehicle passes through the toll station and the toll price for each vehicle. | ||
Applying Article 10 of Circular No. 156/2013/TT-BTC, the following cases are stipulated in the Circular:
For taxes paid monthly, quarterly, and annually, if during the tax period there is no tax payment obligation or the taxpayer enjoys tax incentives, exemptions, or reductions, the taxpayer must still pay taxes. Submit tax declarations to the tax authority within the prescribed time limit, except for cases of temporary suspension of business operations, temporary suspension of business operations according to the instructions in Point d, Clause 1 of this Article and other cases where it is not necessary to submit documents. Please follow the instructions in Articles 16, 17, and 18 of this Circular to declare taxes. “
Therefore, all types of enterprises established and operating in all sectors of the economy, without exception, are obliged to prepare and present annual accounts in accordance with the provisions of the law on accounting and statistics, provided that no income or expenses arise.
Enterprises and individuals who do not issue invoices in accordance with the provisions of law may be subject to administrative sanctions under Decree 125/2020/ND-CP. When establishing a company but not issuing invoices, they will also be punished according to the regulations.
|
Numerical order |
Behavior |
Penalty level |
Base |
| 1 | Do not issue invoices when selling goods and services, except in cases where taxpayers have declared tax on the value of goods and services sold or provided in the corresponding tax period. | Taxpayers are fined once for the amount of tax evasion with one or more mitigating circumstances;
If there are no aggravating or mitigating circumstances, the taxpayer is fined 1.5 times the amount of tax evasion. – If there are aggravating circumstances, the taxpayer will be fined twice the amount of tax evasion. – Taxpayers with two aggravating circumstances will be fined 2.5 times for tax evasion. – Taxpayers with three or more aggravating circumstances will be fined three times for tax evasion. |
Article 17, Clause 3 |
| 2 | Invoices for the sale of goods and services with incorrect quantity and value for tax declaration, lower than actual value and discovered after the deadline for submitting tax declarations. | ||
| At the same time, the taxpayer must also pay the amount of tax evasion to the state budget.
If the tax evasion period has expired, the taxpayer will not be penalized for tax evasion but must still pay the total amount of tax evasion and the amount of late payment calculated into the amount of tax evasion. from the state budget. It is mandatory to adjust the losses and the amount of VAT deducted in the tax data (if any). |
|||
| 3 | Not issuing a consolidated invoice according to the provisions of law on sales invoices and service provision; | Fine from 500,000 to 1,500,000 (for individuals)
Fine from 1,000,000 VND to 3,000,000 VND (for organizations) |
Clause 2, Article 24 |
| 4 | Do not issue invoices for goods and services used for promotional, advertising, or sample purposes; goods and services used for giving, lending, exchanging, or returning on behalf of employees, except for goods for internal circulation and internal consumption to continue the production process. | ||
| 5 | Do not send invoices when you sell goods or provide services to buyers when necessary. | Fine 10-20 million VND (individual)
Fine 20-40 million VND (for organization) Required to issue invoice |
Clause 5, Article 24 |
| 6 | Invoice not issued at the specified time | ||
| 6.1 | Failure to perform leads to late performance of tax obligations and has mitigating circumstances; | Warning | Point a, Clause 1, Article 24 |
| 6.2 | Failure to comply leads to delayed tax payment. | Fine from 3 to 5 million VND (for individuals)
Fine from 6 million to 10 million VND (for organizations) |
Clause 3, Article 24 |
| 6.3 | Invoice not issued at the prescribed time (not included in cases 6.1 and 6.2) | Fine from 4 to 8 million VND (for individuals)
Fine from 8 million to 16 million VND (for organizations) |
Clause 4, Article 24 |
Above, VIET MY LAW AND ACCOUNTING has provided information about the fine to set up a company but do not issue invoices. If you have any other questions that need advice or support, please contact Viet My, our team will answer quickly and in detail.
Mr. Nguyen Thanh Phuc has more than 15 years of experience in business administration, consulting, legal support, tax and strategic consulting. Mr. Nguyen Thanh Phuc is a leading expert in the field of Law and Accounting in Vietnam, founder of the Viet My Law and Accounting brand, which has successfully franchised more than 30 branches nationwide. Viet My is the only Vietnamese brand reputable enough to franchise and succeed in the fields of Law and Accounting.
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