Warning: Serious Consequences for Using Fake Invoices!

The General Department of Taxation has issued a stern warning about violations related to invoices and the severe penalties involved.

According to a warning from the General Department of Taxation, intentionally using illegal invoices or fake invoices to evade taxes, cheat on VAT refunds, or legalize expenses is a serious violation of tax law. This matter has full sanctions according to regulations.

What consequences will violators face?

Administrative sanctions: According to Articles 142 and 143 of the Law on Tax Administration No. 38/2019/QH14, individuals and organizations will be severely punished for false declarations leading to a lack of tax payable or an increase in the tax amount. Taxes are exempted, reduced, refunded, not collected, as well as tax evasion.

Criminal prosecution: In case of violations related to invoices, it constitutes the crime of fraudulent appropriation of property according to Article 174 of the 2015 Penal Code, the penalty frame can be up to 20 years in prison, accompanied by a Fine from 10 million to 100 million VND. In addition, violators may be banned from holding positions, practicing certain occupations, doing certain jobs for 1 to 5 years, or even having part or all of their assets confiscated.

Imprisonment: For tax evasion according to Article 200 of the 2015 Penal Code, the prison sentence can be up to 7 years, accompanied by a fine from 100 million to 4.5 billion VND. Violators may also be fined from 20 million to 100 million VND, banned from holding positions, practicing certain occupations doing certain jobs for 01 to 05 years, or having part or all of their assets confiscated.

For commercial legal entities that violate: Penalties can be up to permanent suspension of operations, and fines from 300 million to 10 billion VND. In addition, they may also be fined from 50 million to 200 million VND, banned from doing business, banned from operating in certain fields, or banned from raising capital from 01 year to 03 years.

The General Department of Taxation affirmed that it has been closely coordinating with authorities to detect, prevent, and strictly handle violations of invoice regulations. A "black" list of individuals and organizations that buy, sell, and use fake invoices will be provided to the police for review, investigation, and handling.

Contact W&A for more detailed information!