Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular details acts of administrative violations of invoices, forms and rates of sanctions, remedial measures for every single act of administrative violation on invoice as regulated under Decree No.109/ND-CP dated September 24, 2013 of the Government stipulating the sanctioning of administrative violations in the field of management on prices, charges, fees and invoices.

Article 2. Subjects of application

This Circular applies to the following subjects:

1. Organizations and individuals that have acts of administrative violations in the field of invoices.

2. Organizations and individuals that have competence in sanctioning of administrative violations of invoices in accordance with legal provisions.

3. Other relevant organizations and individuals.

Article 3. Sanctioning principals and forms of administrative violations on invoices

1. All administrative violations on invoices are detected, timely prevented and must be strictly handled. All consequences of the administrative violations of invoices caused must be overcome in compliance with legal provisions.

2. The handling of administrative violations on invoices will be conducted quickly, timely, publicly, frankly, unprejudiced, complied with competence, ensured the fairness and complied with legal provisions.

3. The handling of administrative violations on invoices must be based on characteristics, levels, consequences of violations, violators, mitigating circumstances and aggravating circumstances.

4. Organizations and individuals will only be sanctioned against their administrative violations on invoices when having acts of administrative violations on invoices as prescribed.

5. An act of administrative violation on invoice will be sanctioned only once.

6. Many persons concurrently commit an act of administrative violation on invoice then each violator will be sanctioned against such act.

7. One person commits many acts of administrative violations on invoices or commits administrative violations on invoices many times will be sanctioned against each act of violation.

8. Competent persons in sanctioning of administrative violations on invoices will be responsible for proving acts of administrative violations on invoices of organizations and individuals. Sanctioned organizations and individuals have their rights to prove that they do not commit administrative violations themselves or through their legal representatives.

9. For the same act of violation on invoice, the rate of fine for an organization will be twofold rate of fine for an individual.

Rates of fines applied to acts of violations as regulated under this Circular are rates of fines for organizations. Rates of fines for individuals will be 1/2 (a half) rates of fines for organizations. For tax payers that are households, rates of fines for individuals will be applied.

10. Forms of sanctions of administrative violations on invoices will comprise:

a) A warning will be applied to acts of violations on invoices which do not cause serious consequences, with mitigating circumstances.

b) A fine, the maximum fine for organizations committing acts of violations on invoices is 50 million dong;

In addition to above-mentioned forms of sanctions, a number of acts of violations on invoices prescribed in Articles 6, 7, 8, 9, 10 and 11 of this Circular, additional forms of sanctions and remedial measures will also be applied.

When imposing fines on acts of violations pertaining to invoices, the specific rate of fine for an act without aggravating circumstance or mitigating circumstance will be the average rate of the fine frame prescribed for such acts. The average rate of the fine frame will be defined by dividing the total of the minimum rate and the maximum rate into halves.

Where there is an aggravating or mitigating circumstance, the increased average rate or the reduced average rate will be applied. The increased average rate will be defined by dividing the total of maximum rate and minimum rate into halves. The reduced average rate will be defined by dividing the total of minimum rate and average rate into halves.

Where there are two aggravating circumstances or more, the maximum rate of the fine frame will be applied. Where there are two mitigating circumstances or more, the minimum rate of the fine frame will be applied.

Where there are aggravating circumstances and mitigating circumstances then the compensation will be based on the principle that one aggravating circumstance minus one mitigating circumstance.

11. Where acts of violations on invoices lead to acts of falsified declarations causing a lack of payable tax amounts or increases of deductible, refundable tax amounts or lead to acts of tax evasion or tax fraud then the sanctioning of administrative violations on invoices will comply with guidance under this Circular and the sanctioning of administrative violations on taxation as prescribed.

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