Prevent and handle sale of e-invoices on social networks

	General Department of Taxation prevents fraud in use of e-invoices
	Violation of e-invoices will be strictly handled

The Tax sector strengthens coordination to prevent and handle the sale of e-invoices on social networks.

The General Department of Taxation said that implementing the Law on Tax Administration No. 38/2019/QH14, from April 21, 2022, the Tax sector has launched an e-invoice system nationwide. Accordingly, businesses, organizations and business individuals have used e-invoices instead of paper invoices.

The switch brings benefits to citizens, businesses and State administration agencies, and is an indispensable need for a transparent and modern commercial system in the current globalization-modernization trend.

However, some enterprises, organizations and individuals have taken advantage of social networks, used technology to post information and advertise the illegal sale of VAT invoices, causing great damage to the State budget.

The country’s top tax regulator said that the illegal posting of information and advertising on the sale of invoices violates the provisions of the Law on Tax Administration No. 38 and Decree No. 123/2020/ND-CP.

The General Department of Taxation cites Clause 7, Article 6 of Law on Tax Administration No. 38 as saying that prohibited activities in tax administration include selling goods and providing services without the issuance of invoices as prescribed by law, using illegal invoices, and using invoices illegally.

Clause 9, Article 3 of Decree 123/2020/ND-CP of the Government provides that “the use of illegal invoices or records” means the use of a fake invoice or record; the use of an invoice or record which is not yet valid or has expired; the use of an invoice or record which is suspended from use during the suspension period, unless it is used according to the tax authority's notice; the use of an e-invoice without applying for the registration for the use of that e-invoice with the tax authority; the use of an e-invoice without the tax authority's authentication in the event of use of authenticated e-invoices; the use of an invoice whose date falls after the date on which the tax authority determines that the seller no longer operates at the business address registered with competent authorities; the use of an invoice or record whose date falls before the date on which the issuer is determined not to operate at the business address registered with competent authorities or before the tax authority gives a notification indicating that the issuer no longer operates at the business address registered with competent authorities but which has been certified as illegal by the police authority or another regulatory authority’s conclusion.

“The illegal use of an invoice or record” means the use of an invoice or record which does not contain all of compulsory contents required by law; the use of an invoice which has been erased or altered against regulations; the use of a fraudulent invoice or record (i.e. an invoice or record in which items and contents about a transaction has been specified but the sale of goods or provision of service is partially or entirely untrue); the use of an invoice which incorrectly reflects the actual payment value or the creation of a fraudulent or fake invoice; the use of an invoice between whose copies there is the difference in the value of goods or service, or compulsory contents; the rotation of an invoice for another during the transportation of goods in circulation or the use of an invoice of a good or service for another good or service; the use of an invoice or record of another entity (except the tax authority’s invoice and unless an invoice is issued with authorization) for the purpose of making the purchased or sold good or service legal; the use of an invoice or record which is determined to be illegal by a tax authority, police authority or another regulatory authority.

Clause 2a, Article 5 of Decree 123/2020/ND-CP stipulates prohibited acts related to invoices and records including performing deceitful acts such as the use of illegal invoices or illegal use of invoices.

On April 12, the Minister of Finance issued Official Dispatch No. 01/CD-BTC on strengthening the management and control of the issuance and use of e-invoices, which directed the General Department of Taxation to coordinate with ministries and sectors to strictly handle violations of the law in the issuance, management and use of e-invoices.