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THE MINISTRY OF FINANCE
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
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No. 7333/BTC-TCT
On handling of business establishments using unlawful invoices
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Hanoi, June 24, 2008
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To: Provincial Tax Offices
The Ministry of Finance has received official letters of some Provincial Tax Offices, asking for guidance on handling of business establishments using unlawful invoices. Concerning this matter, the Ministry of Finance provides the following guidance:
1. Current provisions on tax policies related to the use and management of invoices and unlawful invoices
1.1. Provisions on invoices:
Point 2 and Point 3.1, Part C of the Ministry of Finance’s Circular No. 120/2002/TT-BTC of December 30, 2002, guiding the implementation of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002, providing for the printing, issuance, management and use of invoices, stipulate:
Point 2: “Organizations and individuals that commit acts of violation specified in Articles 12, 13, 14, 15 and 16 of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002, causing loss of tax revenues to the state budget shall, apart from being administratively sanctioned under these articles, be also subject to:
2.1. Retrospective collection of evaded tax amounts.
2.2. Tax-related fines under the tax laws. If committing serious violations, they shall be examined for penal liability under law.”
Point 3.1: “…For organizations and individuals that have purchased invoices but used them illegally (they fled away), those invoices will not be accepted for declaration to calculate creditable or refundable value-added tax amounts and compute reasonable expenses.”
1.2. Provisions on value-added tax:
Point 1.3, Section III, Part B of the Ministry of Finance’s Circular No. 120/2003/TT-BTC of December 12, 2003, and Point 1.3, Section III, Part B of the Ministry of Finance’s Circular No. 32/2007/TT-BTC of April 9, 2007. guiding value-added tax, stipulate: “Business establishments may not calculate and credit input value-added tax in the following cases: Added value invoices are issued against regulations, i.e., they are not written with value-added tax (except for special cases in which added value invoices may be written with value-added tax-inclusive prices); the seller’s name, address or tax identification number is not written or incorrectly written so that the seller is unidentifiable; value-added tax payment invoices and documents are counterfeit, invoices are erased or improperly modified, false invoices (invoiced goods or services are not actually sold); invoices are written with a value not true to the real value of goods or services purchased, sold or exchanged.”
