Công văn 3512/TCT-CS

To: Department of Taxation of Khanh Hoa province

In response to the Official Dispatch No. 1351/CT-THNVDT dated 21/3/2014 by Department of Taxation of Khanh Hoa province about invoices and papers, General Department of Taxation hereby offers opinions as follows:

In point b clause 4 Article 38 of Decree No. 109/2013/ND-CP dated 24/9/2013 by the Government providing for penalties for administrative violations against the regulations on management of prices, fees, charges and invoices as follows:

“Article 38. Violations against regulations on using invoices when selling goods and services

…

4. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed for one of the following violations:

…

b) Failing to issue invoices for the goods or services valued at 200,000 VND or more to the buyer. Apart from carrying the fine, the seller shall issue invoices to the buyer.”

Clause 5 Article 44 of Decree No. 109/2013/ND-CP dated 24/9/2013 prescribed as follows:

“5. If goods are transited without legitimate invoices and papers, the taxpayer shall face penalties for tax avoidance stipulated in the Law on Tax administration and its guiding documents, apart from the penalties for administrative violations pertaining to invoicing in this Decree.”

Article 13 of Circular No. 166/2013/TT-BTC dated 15/11/2013 by the Ministry of Finance detailing the administrative penalties for tax offenses provide guidance as follows:

“Article 13. Penalties for tax evasion, tax fraud

Any taxpayer that commits tax evasion or tax fraud shall incur a fine that is a multiple of the tax arrears:

….

m) Goods are transported by road without legal invoices or documents.”

Regarding the question of Department of Taxation of Khanh Hoa province, General Department of Taxation has issue the Official Dispatch No. 831/TCT-PC dated 14/3/2014 for response.

The penalties for tax evasion applicable to goods transported by road without legal invoices have been specified in clause 5 Article 44 of Decree No. 109/2013/ND-CP pursuant to which Circular No. 166/2013/TT-BTC is promulgated.

Pursuant to the regulations above:

If goods are transited without legitimate invoices and papers and competent agencies conduct inspections and discover violations, the penalties tax evasion specified in Article 13 of Circular No. 166/2013/TT-BTC dated 15/11/2013 by the Ministry of Finance detailing the penalties for administrative violations against the regulations on taxation. If the tax authority discovers that the seller fails to issue invoices for the goods valued at VND 200,000 or more, a fine of from VND 10,000,000 to VND 20,000,000 shall be imposed for such seller according to the guidance in point b clause 4 Article 38 of Decree No. 109/2013/ND-CP.