Tax Policies
Decree No. 70/2025/ND-CP dated March 20, 2025 amending Decree No. 123/2020/ND-CP dated October 19, 2020 on invoices and documents
Decree No. 70/2025/ND-CP of the Government (effective from June 1, 2025) amends and supplements Clauses 1 and 2, Article 9 of Decree No. 123/2020/ND-CP regarding the timing of invoice issuance as follows:
– The time of invoice issuance for the sale of goods (including the sale or transfer of public assets and the sale of national reserve goods) is the time of transfer of ownership or right of use of the goods to the buyer, regardless of whether payment has been received.
– For the export of goods (including processing for export), the time of issuance of the electronic commercial invoice, electronic VAT invoice, or electronic sales invoice shall be determined by the seller, but no later than the next working day from the date on which the goods are cleared through customs in accordance with customs regulations.
– The time of invoice issuance for the provision of services is the time when the provision of services is completed (including services provided to organizations and foreign individuals), regardless of whether payment has been received.
– In cases where the service provider collects payment before or during the provision of services, the time of invoice issuance shall be the time of payment (excluding deposits or advances made to secure the performance of service contracts such as accounting, auditing, financial consulting, taxation, valuation, surveying, technical design, supervision consultancy, and investment project preparation).
In addition, Decree No. 70/2025/ND-CP amends and supplements Points a, e, l, m, n, Clause 4, Article 9 of Decree No. 123/2020/ND-CP on the timing of invoice issuance in specific cases such as:
– Sale of goods and provision of services in large quantities, on a frequent basis, requiring reconciliation between the seller and the customer/partner (Point a).
– Exploration, extraction, and processing of crude oil (Point b).
– Lending activities, foreign exchange agency services, and foreign currency receipt and payment services provided by economic organizations of credit institutions (Point l).
Passenger transportation business by taxi using fare calculation software as prescribed by law (Point m).
– Medical examination and treatment services using hospital management and fee management software (Point n).
General Department of Taxation’s guidance on penalties for administrative violations in tax and invoice matters
– Regarding the maximum fine for administrative violations: The fine amount stated in the decision on administrative sanction is the total specific fines for each violation and is not limited by the maximum fine specified in Points c and đ, Clause 1, Article 24 of the Law on Handling of Administrative Violations 2012 (as amended in 2020).
– Regarding aggravating circumstances:
+ Large-scale administrative violations: In cases where, in a single administrative sanction, the taxpayer commits multiple invoice-related violations and is penalized for each violation, the aggravating circumstance “large-scale administrative violation” does not apply. However, if the taxpayer commits a single invoice-related violation (involving 10 or more invoices), the taxpayer will be penalized for one violation and subject to the aggravating circumstance “large-scale administrative violation.”
+ Repeated administrative violations: Where the taxpayer commits multiple identical administrative violations and is penalized for each violation, from the second violation onwards, such cases are deemed to involve the aggravating circumstance “repeated violations” as specified in Point b, Clause 1, Article 10 of the Law on Handling of Administrative Violations 2012 (as amended in 2020).
Personal Income Tax
Decree No. 49/2025/ND-CP dated February 28, 2025 on exit suspension due to incomplete tax obligations
Accordingly, the thresholds for tax arrears and overdue periods subject to exit suspension are as follows:
– Business individuals or household business owners subject to enforcement of administrative tax management decisions with outstanding tax liabilities of VND 50 million or more and overdue by more than 120 days.
– Individuals who are legal representatives of enterprises, cooperatives, or cooperative unions subject to enforcement of administrative tax management decisions with outstanding tax liabilities of VND 500 million or more and overdue by more than 120 days.
– Business individuals, household business owners, or legal representatives of enterprises, cooperatives, or cooperative unions that have ceased operations at their registered address with overdue tax liabilities, and who, after 30 days from the date the tax authority notifies of the impending exit suspension, have not yet fulfilled their tax obligations.
– Vietnamese citizens emigrating abroad for permanent residence, overseas Vietnamese, or foreign nationals departing from Vietnam with overdue tax liabilities that have not been settled.
