Decree No. 51/2010/ND-CP dated May 14, 2010 of the Government providing for goods sale and service provision invoices

DECREE

PROVIDING FOR GOODS SALE AND SERVICE PROVISION INVOICES

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2006 Law on Tax Administration;

Pursuant to the June 17, 2003 Law on Accounting;

Pursuant to the November 29, 2005 Law on E-Transactions;

Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations and the April 2, 2008 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations;

At the proposal of the Minister of Finance,

DECREES:

Chapter I GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides for the printing, issuance and use of goods sale and service provision invoices (below collectively referred to as invoices); the sanctioning of administrative violations related to invoices; tasks and powers of tax administration agencies at all levels as well as agencies and organizations involved in the printing, issuance and use of invoices; and rights, obligations and responsibilities of agencies, organizations and individuals in the printing, issuance and use of invoices.

Article 2. Subjects of application

1. Goods sellers and service providers, including:

a/ Vietnamese organizations and individuals that sell goods and provide services (collectively referred to as goods and service sellers) in Vietnam or overseas;

b/ Foreign organizations and individuals that sell goods and services in Vietnam or conduct production and business activities in Vietnam and sell goods overseas;

c/ Vietnamese and foreign non-business organizations and individuals that sell goods and services in Vietnam.

2. Invoice-printing organizations.

3. Organizations and individuals that buy goods and services.

4. Tax administration agencies at all levels and organizations and individuals involved in the printing, issuance and use of invoices.

Article 3. Interpretation of terms

1. Invoice means a document made by a seller to record information on goods or service sale under law.

2. Creation of an invoice means the making of an invoice used for goods and service sale by business organizations and individuals, including invoices printed out from enterprises' machines or equipment; invoices printed on order by qualified enterprises; and e-invoices created under the Law on E-Transactions.

3. Making out of an invoice means the filling of all contents of an invoice under regulations when selling goods or services.

4. Lawful invoice means an invoice which is correct and complete in form and content as provided in this Decree.

5. Counterfeit invoice means an invoice printed or created according to the specimen of an invoice already issued by another organization or individual, or printed or created with the same serial number of an invoice with the same symbol.

6. Invalid invoice means an invoice which has been printed or created under this Decree but for which issuance notification has not yet been completed.

7. Expired invoice means an invoice for which all issuance procedures have been carried out but the issuer notifies that he/she/it no longer uses it; an invoice which is lost after its issuance is notified by the issuer to the managing tax office; or an invoice of an organization or individual that has ceased to use (or closed) his/her/its tax identification number.

8. Use of unlawful invoices means the use of counterfeit invoices, invalid invoices, expired invoices or invoices of other organizations or individuals (other than invoices issued by tax offices) for making out invoices when selling goods or services or for accounting, tax declaration or budget capital payment.

9. Illegal use of invoices means the making out of false invoices; giving away or sale of blank invoices to other organizations or individuals to make them out when selling goods or services; giving away or sale of made-out invoices to other organizations or individuals for accounting, tax declaration or budget capital payment; making out of an invoice without filling in all of its contents; making out of an invoice with different information in its copies; use of invoices of certain goods or services for evidencing other goods or services; or repeated use of invoices when transporting goods for sale.

10. False invoice means an invoice which contains partially or wholly untruthful contents.

Article 4. Types, form and contents of an invoice

1. Invoices provided in this Decree take the following types:

a/ Export invoice, which is an invoice used in exporting goods and services abroad or into non-tariff zones;

b/ Value-added invoice, which is a domestic goods and service sale invoice reserved for organizations and individuals that declare value-added tax by the credit method;

c/ Sale invoice, which is an invoice for domestic goods and service sale reserved for organizations and individuals that declare value-added tax by the direct method;

d/ Other types of invoice, including tickets, cards or documents which have other names but the same forms and contents provided in Clauses 2 and 3 of this Article.

2. An invoice may take any of the following forms:

a/ Self-printed invoice, which is printed out by business organizations and individuals themselves from computers, cash registers or other machines when selling goods or services;

b/ E-invoice, which is a combination of e-data massages on goods and service sale which are created, made, sent, received, stored and managed under the Law on E-Transactions and guiding documents;

c/ Invoice printed on order, which is an invoice printed on order of business organizations and individuals according to a set form for goods and service trading activities, or on order of tax offices according to a set form for distribution or sale to organizations and individuals.

3. An invoice must contain the following:

a/ Name, symbol and number of the invoice and names of its copies. An invoice printed on order must also indicate the name of the invoice-printing organization;

b/ Name, address and tax identification number of the seller;

c/ Name, address and tax identification number of the buyer;

d/ Name, unit of calculation, quantity and unit price of goods or services; amount exclusive of value-added tax, value-added tax rate, and value-added tax amount, for value-added invoices;

e/ Total paid amount, signatures of the buyer and seller, seal of the buyer (if any), and date of making out the invoice.

The Ministry of Finance shall specify cases in which an invoice is not required to contain all the contents specified in this Clause.

4. Invoices shall be presented in Vietnamese. For export invoices or invoices requiring foreign-
language words, foreign-language words shall be written in parenthesis () at the right of or just
below the Vietnamese words and have a font size smaller than that of Vietnamese words.

5. When a treaty to which Vietnam is a contracting party provides for the contents and forms of invoice different from those provided in Clauses 2 and 3 of this Article, such treaty prevails.

Chapter II

CREATION AND ISSUANCE OF INVOICES

Article 5. Principles of creation and issuance of invoices

1. Business organizations and individuals that fully satisfy the conditions specified in Articles 6 and 7 of this Decree may themselves print invoices or create e-invoices for use in goods and service sale.

2. Business organizations and individuals that have tax identification numbers but fail to fully satisfy the conditions specified in Clause 1 of this Article may order the printing of invoices for their goods and service sale.

3. Tax offices of provinces and centrally run cities (below referred to as provincial-level Tax Departments) shall order the printing of, and issue, invoices for distribution or sale to organizations and individuals under Article 10 of this Decree.

4. Enterprises that fully satisfy the conditions specified in Article 22 of this Decree may print invoices for other organizations and individuals.

5. Business organizations and individuals may concurrently use invoices of different forms. The State encourages the use of e-invoices.

6. Invoice-printing organizations and individuals may not print the same serial numbers for invoices with the same symbol.

7. Before using invoices for goods or service sale, organizations and individuals shall notify their issuance under Articles 11 and 12 of this Decree.

Article 6. Self-printed invoices

1. Enterprises established under law in industrial parks, economic zones, export-processing zones or hi-tech parks; enterprises having a charter capital level prescribed by the Ministry of Finance; and public non-business units conducting production and business activities under law may themselves print invoices after obtaining their tax identification numbers.

2. Business organizations and individuals, except those defined in Clause 1 of this Article, may themselves print invoices for goods and service sale if they fully satisfy the following conditions:

a/ Having obtained tax identification numbers;

b/ Having turnover from goods and service sale ;

c/ Not having been sanctioned for tax-related violations prescribed by the Ministry of Finance for 365 (three hundred and sixty five) consecutive days by the date of notification of the issuance of self-printed invoices;

d/ Having equipment systems for printing and making out invoices when selling goods or services;

e/ Being accounting units as defined in the Accounting Law and having goods and service sale software linked with accounting software to ensure that invoices will be printed and made out only when accounting operations arise.

3. Self-printed invoices must abide by the principle that an invoice has the sole number. The number of invoice copies to be printed depends on specific use needs of sale operations. Organizations and individuals shall themselves specify in writing the number of invoice copies.

Article 7. E-invoices

1. E-invoices shall be created, made out and processed on computers of business organizations and individuals with tax identification numbers when selling goods or services and stored on computers of the involved parties under the law on e-transactions.

2. E-invoices shall be used under the law on e-transactions.

Article 8. Invoices printed on order

1. Invoices to be printed on order shall be printed in a pre-printed format with contents specified in Clause 3, Article 4 of this Decree. Particularly, an invoice printed on order of a provincial-level Tax Department must show the Tax Department's name in its left upper corner.

2. Business organizations and individuals with tax identification numbers may order the printing of invoices for goods and service sale.

3. Provincial-level Tax Departments shall order the printing of invoices for sale or distribution to organizations and individuals defined in Article 10 of this Decree.

4. All units of provincial-level Tax Departments shall sell or distribute invoices of the same type issued by the Tax Departments.

Article 9. Printing of invoices on order

1. Invoices to be printed on order shall be printed under contracts between business organizations and individuals or provincial-level Tax Departments and invoice-printing enterprises that fully satisfy the conditions specified in Article 22 of this Decree.

2. An invoice printing contract shall be made in writing and must indicate the quantity, symbol and serial number of the invoice, enclosed with the specimen invoice.

3. A printing enterprise which itself prints invoices on order for goods and service sale shall obtain an invoice printing decision from its head, which must have the contents specified in Clause 2 of this Article.

Article 10. Sale and distribution of invoices printed on order of provincial-level Tax Departments

1. Invoices printed on order of provincial-level Tax Departments shall be sold at prices on the principle that prices can offset actual expenses. Directors of provincial-level Tax Departments shall decide on invoice selling prices on this principle before posting them. Tax offices at all levels may not collect any money in addition to the posted price.

2. Invoices printed on order of provincial-level Tax Departments may be sold only to organizations other than enterprises which conduct business activities and to business households and individuals with their establishments based in localities.

3. Invoices printed on order of provincial-level Tax Departments shall be distributed to organizations other than enterprises and to non­-business households and individuals that sell goods and services and need invoices for handing to their customers.

Article 11. Issuance of invoices by business organizations and individuals

1. Before using invoices for goods and service sale, business organizations and individuals shall make invoice issuance notices.

2. An invoice issuance notice contains the specimen invoice, date of use commencement, date of making the notice and signature of a representative at law.

3. Specimen invoice is an invoice printed with correct and full contents of an invoice copy to be handed to a buyer which has a number consisting of a series of zeros and the word "specimen".

4. An invoice issuance notice shall be sent to the tax office of the locality where the invoice issuer is based within 10 days after the notice is signed, and posted up right at the establishments using invoices for goods and service sale throughout the invoice use duration.

5. In case of changes in the notified contents, business organizations and individuals shall carry out new issuance notification procedures under Clauses 2. 3 and 4 of this Article.

Article 12. Issuance of invoices by provincial-level Tax Departments

1. Invoice issuance notices must be made for invoices printed on order of provincial-level Tax Departments for sale or distribution before first-time sale or distribution.

2. Contents of an issuance notice and specimen invoice are specified in Clauses 2 and 3 of Article 11.

3. An invoice issuance notice shall be sent to all provincial-level Tax Departments nationwide within 10 (ten) days from the date of its making and posted up right at establishments of provincial-level Tax Departments throughout the invoice use duration. A provincial-level Tax Department which has posted the invoice issuance notice on the tax sector's website is not required to send this notice to another Tax Department.

4. In case of a change in the notified contents, provincial-level Tax Departments shall carry out new issuance notification procedures under Clauses 2 and 3 of this Article.

Article 13. Identification of invoices

1. Invoice printing and issuing organizations and individuals shall print confidential identification signs in their issued invoices for the identification of counterfeit invoices in the course of their use.

2. Invoice printing and issuing organizations and individuals shall give a written reply within 10 days after receiving a request of a competent state agency for identification of the legality of invoices.

Chapter III USE OF INVOICES

Article 14. Principles of use of invoices

1. Business organizations and individuals may make out and hand invoices to goods and service buyers under this Decree.

2. When making out an invoice, business organizations and individuals shall fully and truthfully fill in it based on actually arising operations.

3. An invoice shall be made out in a number of originals to be handed to the buyer, kept by the seller and to meet requirements of business activities. Invoice originals with the same serial number must have the same contents.

4. In the course of using invoices, business organizations and individuals that detect the loss of invoices already or not yet made out shall report such loss to managing tax offices for information and timely handling.

5. Business establishments within the same accounting unit as provided in the Accounting Law shall use invoices of the principal establishment.

Article 15. Making out of invoices

1. When selling goods or services, the seller shall make out an invoice with all the contents required in this Decree.

2. Invoices shall be made out with serial numbers in ascending order. The Ministry of Finance shall specify the order of making out invoices in cases in which different establishments within the same accounting unit use invoices with the same name and symbol.

3. Date of making out an invoice is a date on which the seller and buyer carry out procedures to acknowledge that the ownership or use right over goods and services has been transferred. In cases in which it is provided by law that the transfer of ownership or use right takes effect from the time of registration, the date of making out an invoice is the date of delivery of goods.

4. In case of multiple delivery of goods or transfer of goods item by item or services stage by stage, an invoice must be made out for each delivery and transfer for the volume and value of delivered or transferred goods or services.

In case of via-phone or online sale of goods or sale of goods or services to multiple consumers at a time, when making out an invoice, the seller or buyer is not required to sign the invoice under the Finance Ministry's regulations.

5. An e-invoice shall be completely made out after the seller and buyer have signed for certifying that a transactions has been conducted under the law on e-transactions.

6. The Ministry of Finance shall specify the making out of invoices in other specific cases.

Article 16. Sale of goods or services without making out invoices

1. Invoices are not required for goods or services with a total payment of under VND 200,000 unless the buyer so requests.

2. Sold goods and services without invoices specified in Clause 1 of this Article shall be listed for monitoring.

3. At the end of a day, the business establishment shall make out a general invoice indicating the goods or service sales on the total line of the list, sign and keep the counterfoil of the original handed to the buyer and use other originals under regulations. The buyer's name in this invoice shall be written as "retail without handover of invoice."

Article 17. Recovery of made-out invoices

1. When detecting errors in a made-out invoice which is not yet handed to the buyer, the seller shall cross out all the originals and keep the number of the invoice containing errors.

2. When errors are detected in a made-out invoice which has been handed to the buyer or when the bought goods or services are returned or recalled at the request of either party, both parties shall make a record of the recovery of the originals of the invoice containing errors or invoice of the returned or recalled goods or services. The seller shall keep this invoice.

An invoice recovery record must indicate errors or reasons for recall or return of goods or services and compensation agreements between the two parties (if any).

Article 18. Disposal of invoices no longer in use

1. Organizations or individuals that obtain tax offices' approval of cessation to use their tax identification numbers shall cease using invoices the issuance of which has been notified but which are not yet used.

2. Organizations or individuals that issue replaceable invoices shall cease using the replaced invoice numbers which are not yet used.

3. Managing tax offices shall notify the termination of validity of invoices not yet made out and currently used by business organizations or individuals that abscond or arbitrarily cease business activities.

Article 19. Authorization for making out invoices

1. Organizations or individuals authorizing others to sell goods or services may authorize the latter to make out invoices when selling goods or services.

2. The authorization for the buyer or a third party to make out invoices complies with the Finance Ministry's regulations.

3. Authorization for making out invoices must be made in writing between the authorizing and authorized parties.

4. Authorizing organizations or individuals shall take responsibility for the creation, issuance and use of invoices under this Decree.

Article 20. Buyers' use of invoices

1. Buyers may use lawful invoices under law for evidencing their use right or ownership over goods or services; enjoying sales promotion, post-sales promotion or lucky draws or receiving damages under law. They may use such invoices for the accounting of goods and service sale under the accounting law; tax declaration: registration of use rights or ownership; and declaration and payment of state budget capital under law. Invoices used for this purpose must contain information which helps identify the buyer, except cases specified by the Ministry of Finance.

2. Invoices' made-out originals handed to buyers which are used for the purposes specified in Clause 1 of this Article shall be preserved under Article 26 of this Decree.

Chapter IV

RIGHTS AND OBLIGATIONS AND ORGANIZATIONS AND INDIVIDUALS IN INVOICE MANAGEMENT AND USE

Article 21. Rights and obligations of goods and service sellers

1. Goods and service sellers may:

a/ Create invoices for use if they fully satisfy the conditions specified in this Decree;

b/ Buy invoices issued by provincial-level Tax Departments;

c/ Use lawful invoices for their business activities;

d/ Refuse under law to provide data on invoice printing, issuance and use to unauthorized organizations and individuals;

e/ Initiate lawsuits against organizations or individuals that infringe upon the rights to create, issue and use lawful invoices.

2.Goods and service sellers are obliged to:

a/ Manage invoice creation activities under this Decree;

b/ Sign, when ordering the printing of invoices, invoice printing-ordering contracts with qualified printing establishments;

c/ Make and send invoice issuance notices under regulations;

d/ Make out and hand invoices when selling goods or services to customers, except cases specified in Article 16 of this Decree;

e/ Regularly inspect the use of invoices and promptly prevent violations;

f/ Report on the use of invoices to managing tax offices under the Finance Ministry's regulations.

Article 22. Condition on and responsibilities of invoice-printing organizations

1. Condition:

An invoice-printing organization must be an enterprise possessing a printing permit.

2. Responsibilities:

a/ To print invoices under signed contracts; to refrain from outsourcing any or all of printing stages to other printing organizations;

b/ To manage, preserve and dispose of printing molds, printed blanks, printed invoices and defective printed invoices as agreed between the two parties and provided by law;

c/ To liquidate printing contracts with printing-ordering organizations or individuals and handle printing molds and discarded printed invoices under the Finance Ministry's regulations;

d/ To send biannual reports on printing of invoices to managing tax offices.

Article 23. Responsibilities of tax offices in invoice management

1. The General Department of Taxation shall:

a/ Inspect and examine the creation, issuance and use of invoices nationwide;

b/ Publicize invoices already issued, lost or no longer valid as notified.

2. Provincial-level Tax Departments shall:

a/ Manage the creation and issuance of invoices by organizations and individuals in localities;

b/ Manage the printing of invoices by printing enterprises in localities;

c/ Order the printing of, and issue, invoices

for distribution or sale to entities under this Decree;

d/ Inspect and examine the creation, issuance and use of invoices in localities.

3. District-level Tax Departments shall:

a/ Examine the use of invoices as decentralized:

b/ Monitor and examine the destruction of invoices as decentralized under the Finance Ministry's regulations.

Article 24. Responsibilities of goods and service buyers

1. When buying goods or services, to request sellers to make out and hand invoices.

2. To provide accurate information necessary for sellers to make out invoices.

3. To sign invoice originals already fully filled in when directly buying goods, except cases specified by the Ministry of Finance.

4. To use invoices for proper purposes.

5. To provide information indicated in invoices to competent agencies upon request.

Article 25. Handling of lost, burnt or damaged invoices by accounting units

1. Business organizations or individuals that have their invoices lost, burnt or damaged shall make records of such loss, burning or damage.

2. After making the records, the organizations or individuals that have their invoices lost, burnt or damaged shall declare in writing such loss, burning or damage to managing tax offices within 5 (five) days after such loss, burning or damage occurs.

The Ministry of Finance shall specify the handling of lost, burnt or damaged invoices as well as order and procedures for declaring the loss, burning or damage of invoices.

Article 26. Storage and preservation of invoices

1. E-invoices and self-printed invoices which are not yet made out shall be stored on computers according to information confidentiality regulations.

2. Invoices printed on order which are not yet made out shall be stored and preserved in warehouses under regulations on archive and preservation of valuable papers.

3. Invoices already made out by accounting units shall be archived under regulations on custody and preservation of accounting documents.

4. Invoices already made out by organizations and individuals other than accounting units shall be preserved like private assets of such organizations and individuals.

Article 27. Destruction of invoices

1. Invoices printed on order which are incorrect, superfluous or duplicate shall be destroyed within 30 (thirty) days after liquidating a contract to order invoice printing.

2. Organizations and individuals with expired invoices shall destroy these invoices within 30 (thirty) days after ceasing to use them or notifying the finding of lost invoices or the expiration of invoices.

3. Organizations or individuals that have self-printed invoices or e-invoices the issuance of which has been notified shall, when no longer using them, destroy them within 30 (thirty) days after they are no longer used.

4. Organizations or individuals that buy invoices of tax offices then shift to use invoices of other forms shall finalize and destroy the bought invoices which are not yet used within 30 (thirty) days after using invoices of new forms.

5. Invoices which are not yet made out but serve as evidence in criminal or civil cases shall not be destroyed but disposed of under law.

6. Accounting units’ made-out invoices shall be destroyed under the accounting law.

The destruction of invoices is subject to approval of an invoice destruction council. The Ministry of Finance shall specify the composition of this council and invoice destruction procedures.

Chapter V

SANCTIONING OF ADMINISTRATIVE VIOLATIONS RELATED TO INVOICES

Article 28. Sanctioning of violations of regulations on self-printing of invoices and creation of e-invoices

1. A fine of between VND one million and VND 5 million shall be imposed for acts of self-printing invoices or creating e-invoices without sufficient contents specified in Clause 3, Article 4 of this Decree.

2. A fine of between VND 2 million and VND 10 million shall be imposed for acts of self-printing invoices or creating e-invoices while conditions specified in this Decree are not fully satisfied.

3. A fine of between VND 20 million and VND 100 million shall be imposed for acts of self-printing counterfeit invoices or creating counterfeit e-invoices and violators shall be deprived of the right to self-print invoices or create e-invoices for 36 (thirty six) months after such acts are detected.

4. In addition to paying a fine, violators of this Article shall be forced to destroy invoices which are printed or created in contravention of regulations.

Article 29. Sanctioning of violations of regulations on ordering of invoice printing

1. A fine of between VND one million and VND 5 million shall be imposed for acts of ordering the printing of invoices without signing written contracts on the printing.

2. A fine of between VND 2 million and VND 10 million shall be imposed for acts of:

a/ Failing to liquidate printing contracts after invoice issuance notices are made;

b/ Failing to destroy under Article 27 of this Decree invoices printed on order which are no longer used before their issuance.

3. A fine of between VND 3 million and VND 15 million shall be imposed for acts of signing printing contracts with establishments which fail to fully satisfy the invoice-printing conditions specified in Article 22 of this Decree.

4. A fine of between VND 4 million and VND 20 million shall be imposed for acts of failing to declare under regulations the loss of invoices before notification of their issuance.

5. A fine of between VND 10 million and VND 50 million shall be imposed for acts of giving away or selling invoices printed on order and not yet issued to other organizations or individuals for use.

6. A fine of between VND 20 million and VND 100 million shall be imposed for acts of ordering the printing of counterfeit invoices and a printing house shall be designated for invoice printing for 36 (thirty) months after such act is detected.

In addition to paying a fine, violators of Clauses 3, 5 and 6 of this Article shall destroy invoices printed on order in contravention of regulations.

Article 30. Sanctioning of violations of regulations on printing of invoices on order

1. A fine of between VND one million and VND 5 million shall be imposed for acts of violating the Finance Ministry's regulations on reporting on invoice printing.

2. A fine of between VND 2 million and VND 10 million shall be imposed for the following acts:

a/ Failing to liquidate printing contracts when the printing-ordering party has completed issuance notification procedures;

b/ Failing to destroy incorrectly or superfluously printed products when liquidating printing contracts.

3. A fine of between VND 4 million and VND 20 million shall be imposed for acts of:

a/ Printing invoices without fully satisfying the conditions specified in Article 22 of this Decree;

b/ Failing to declare the loss of invoices during printing them or before handing them to customers.

4. A fine of between VND 5 million and VND 25 million shall be imposed for acts of transferring any or all of printing stages to other printing establishments.

5. A fine of between VND 10 million and VND 50 million shall be imposed for acts of giving away or selling invoices printed on order of certain customers to others.

6. A fine of between VND 20 million and VND 100 million shall be imposed for acts of printing counterfeit invoices and violators shall be suspended from printing for 36 (thirty six) months after their acts are detected.

In addition to paying a fine, violators of Clauses 5 and 6 of this Article shall destroy given, sold or counterfeit invoices.

Article 31. Sanctioning of violations of regulations on invoice purchase

1. A fine of between VND one million and VND 5 million shall be imposed for acts of untruthfully declaring conditions in order to be eligible for buying invoices issued by tax offices.

2. A fine of between VND 2 million and VND 10 million shall be imposed for acts of failing to destroy expired bought invoices.

3. A fine of between VND 6 million and VND 30 million shall be imposed for acts of failing to declare the loss of bought invoices.

4. A fine of between VND 10 million and VND 50 million shall be imposed for acts of giving away or selling bought invoices not yet made out.

In addition to paying a fine, violators of Clauses 2 and 4 of this Article shall destroy expired bought invoices or bought invoices not yet made out.

Article 32. Sanctioning of violations of regulations on invoice issuance

1. A fine of between VND one million and VND 5 million shall be imposed for acts of:

a/ Making issuance notices with insufficient contents;

b/ Failing to send or post up invoice issuance notices under regulations.

2. A fine of between VND 4 million and VND 20 million shall be imposed for acts of failing to make invoice issuance notices after invoices have been used.

In addition to paying a fine, violators of this Article shall carry out invoice issuance procedures under this Decree.

Article 33. Sanctioning of violations of regulations on the use of invoices when selling goods and services

1. A fine of between VND 200.000 and VND one million shall be imposed for acts of failing to fully fill in pre-printed contents when making out invoices or filling in them in contravention of Article 15 of this Decree.

2. A fine of between VND one million and VND 5 million shall be imposed for acts of:

a/ Making out invoices without handing them to buyers;

b/ Failing to make lists or make out general invoices under Clauses 1 and 2, Article 16 of this Decree.

3.         A fine of between VND 2 million and VND
10 million shall be imposed for acts of:

a/ Failing to destroy under this Decree issued invoices which are not yet made out or no longer valid;

b/ Failing to report under regulations on invoices which have been used.

4. A fine of between VND 3 million and VND 15 million shall be imposed for acts of making out invoices with serial numbers not in ascending order.

5. A fine of between VND 5 million and VND 20 million shall be imposed for acts of failing to make out under this Decree invoices when selling goods or services valued at over VND 200.000 for buyers. At the same time, business organizations or individuals shall make out and hand invoices to buyers.

6. A fine of between VND 5 million and VND 25 million shall be imposed for acts of:

a/ Making out invoices with different contents in their copies;

b/ Failing to report on the loss of issued invoices which are not yet made out or of made-out invoices which are not yet handed to customers.

7. A fine of between VND 12 million and VND 60 million shall be imposed for acts of making out unlawful invoices.

8. A fine of between VND 15 million and VND 75 million shall be imposed for acts of giving away or selling issued invoices which are not yet made out.

9. A fine of between VND 20 million and VND 100 million shall be imposed for acts of making out false invoices.

In addition to fine, violators of Point a, Clause 3 of this Article shall destroy issued invoices which are not yet made out or no longer valid.

Article 34. Sanctioning of buyers' violations of regulations on invoice use

1. A fine of between VND one million and VND 5 million shall be imposed for acts of losing made-out invoices (copies to be handed to buyers) which serve as a basis for accounting, tax declaration and budget capital payment.

2. A fine of between VND 10 million and VND 50 million shall be imposed for acts of using unlawful invoices, except the case specified in Clause 3 of this Article.

3. A fine of between VND 20 million and VND 100 million shall be imposed for acts of using made-out false invoices.

Article 35. Principles and procedures for handling violations, extenuating and aggravating circumstances, coercion, and time limit for enforcing sanctioning decisions

1. Principles for handling violations, sanctioning procedures, extenuating and aggravating circumstances, and statute of limitations for sanctioning administrative violations related to invoices specified in this Decree comply with the Ordinance on Handling of Administrative Violations.

2. The specific fine for an act of violation involving no aggravating or extenuating circumstance is the average level in the fine frame specified for such act. Such average level shall be determined by halving the total of the minimum and maximum levels. For an act of violation involving an aggravating or extenuating circumstance, an increased or reduced average level will apply, which shall be determined by halving the total of the minimum and average levels or the total of the maximum and average levels. For an act of violation involving more than one aggravating or extenuating circumstance, the maximum or minimum level will apply. For an act of violation involving both aggravating and extenuating circumstances, they shall be offset against each other for the application of the fine frame on the principle that one aggravating circumstance shall be offset against one extenuating circumstance.

3. Organizations and individuals that are sanctioned under this Decree shall comply with sanctioning decisions within 10 days after receiving such decisions from competent agencies. Sanctioned organizations and individuals that fail to voluntarily comply with sanctioning decisions shall be coerced to comply with them under the Ordinance on Handling of Administrative Violations.

Article 36. Inspection and examination

Tax administration agencies at all levels and specialized finance inspection agencies may inspect and examine organizations and individuals in observing this Decree.

Invoice-related inspection and examination comply with the Finance Ministry's regulations.

Article 37. Competence to sanction administrative violations related to invoices

1. The competence to sanction administrative violations related to invoices complies with Articles 29, 30, 36 and 38 of the Ordinance on Handling of Administrative Violations.

2. Acts violating Articles 28 thru 34 which result in untruthful declaration causing reduction of the payable tax amount or increase of the tax amount to be refunded or result in tax evasion or fraud shall be sanctioned under the Law on Tax Administration.

3. For violations related to the printing of counterfeit invoices which are subject to penal liability examination, their dossiers shall be transferred to competent agencies for initiation of criminal cases under law.

4. Procedure-conducting agencies shall notify results of handling invoice-related violations to agencies that have proposed them for penal liability examination.

5. When a sanctioning decision is issued before detecting that the act of violation has criminal signs and the statute of limitations for penal liability examination has not expired yet, the person who has issued this decision shall cancel it and, within 3 days after that, he/she shall transfer the dossier of the violation to a competent criminal procedure-conducting agency.

Chapter VI IMPLEMENTATION PROVISIONS

Article 38. Effect

This Decree takes effect on January 1, 2011, and replaces the Government's Decree No. 89/2002/ND-CP of November 7. 2002, providing for the printing, issuance, use and management
of invoices.

Article 39. Implementation guidance

The Ministry of Finance shall guide the implementation of this Decree and coordinate with state agencies, political organizations, socio­political organizations, social organizations and socio-professional organizations in propagating, educating people about, and mobilizing them to implement, or oversee the implementation of, this Decree.

Article 40. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People's Committees shall implement this Decree.-

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

NGUYEN TAN DUNG