Penalties for Issuing Invoices at the Wrong Time

According to Official Letter No. 29272/CTHN-TTHT dated May 20, 2024, from the Hanoi Tax Department, companies that issue invoices at incorrect times, contrary to the regulations on invoicing for the sale of goods and provision of services, will be penalized as specified in Article 24 of Decree No. 125/2020/ND-CP dated October 19, 2020. Specifically, the penalties range from VND 4 million to VND 8 million; if the incorrect timing does not result in a late tax payment, the penalty is between VND 3 million and VND 5 million. In cases where there is no late tax payment and mitigating circumstances are present, only a warning will be issued.

If a company's customer purchases goods or services for use in the production and business of VAT-liable goods and services, possesses a legal VAT invoice, and meets the conditions specified in Clause 10, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015 (amended and supplemented by Article 1 of Circular No. 173/2016/TT-BTC dated October 28, 2016), the input VAT can be deducted according to regulations.

The determination of deductible expenses when calculating taxable corporate income must follow the guidelines in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, issued by the Ministry of Finance.

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