Decree No. 89/2002/ND-CP on printing, issuing, using, and managing invoices

DECREE

DECREE NO. 89/2002/NĐ-CP OF THE GOVERNMENT ON November 7, 2002 REGULATING THE PRINTING, ISSUANCE, USE AND MANAGEMENT OF INVOICES 

THE GOVERNMENT

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

On the basis of current tax laws and ordinances;

On the basis of the Accounting and Statistics Ordinance dated May 20, 1988;

Based on the Administrative Violation Handling Ordinance dated July 2, 2002;

At the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope and subjects of application.

This Decree applies to organizations and individuals as prescribed by law who have rights and obligations regarding the printing, issuance, use, and management of invoices.

Article 2. Types, forms, and contents of invoices.

1. The types of invoices stipulated in this Decree include:

a) Value-added tax invoices;

b) Sales invoices;

c) Purchase invoices;

d) Other types of invoices.

2. Invoices shall be presented in one of the following forms:

a) Pre-printed invoice forms;

b) Invoices printed from cash registers according to prescribed models;

c) Stamps and tickets with pre-printed denominations.

3. The content of invoices must contain all required indicators as prescribed to be legally valid.

4. The specific form and content of invoices shall be prescribed by the Ministry of Finance.

Article 3. Some terms in this Decree are understood as follows:

1. Invoice is a pre-printed form, printed from computers, or printed as tickets with denominations as prescribed by the State, confirming the quantity and value of goods and services purchased, sold, exchanged, and the rights and obligations of the parties involved in such transactions.

2. Self-printed invoice is an invoice printed by organizations and individuals permitted to print according to prescribed models.

3. Issuing invoices is the act of organizations and individuals putting out printed invoices for use.

4. Invoice code is a classification indicator of invoices using a system of Vietnamese letters and the year of invoice issuance.

5. The number of an invoice is the serial number within the invoice code.

6. Invoice copies are the sheets within the same invoice number.

7. Creating an invoice is the act of using necessary means to record complete information according to the indicators on the invoice.

8. Void invoice is an invoice that has been created but the transaction content is not real.

9. Fake invoice is an invoice not issued by organizations or individuals authorized to print and issue invoices.

Article 4. Prohibited acts.

It is strictly prohibited for any organization or individual to print, issue, use, manage, buy, or sell invoices contrary to the provisions of this Decree.

Chapter II

PRINTING, ISSUING, USING, AND MANAGING INVOICES

Article 5. Printing invoices.

1. The Ministry of Finance prints invoices for issuance and sale to organizations and individuals for use as prescribed by tax laws and ordinances.

2. Organizations and individuals may print invoices according to the provisions of this Decree and guidelines of the Ministry of Finance.

Article 6. Responsibilities of organizations and individuals printing invoices.

1. Organizations and individuals permitted to print invoices, when ordering invoices to be printed, must follow the model approved by the head of the organization, signed, and clearly marked with their name on the printed invoice model; they must have a printing contract with the printing organization specifying the quantity, code, and serial number of the invoices; after each printing session or completion of the contract, they must settle the contract.

2. Before printing a new batch of invoices, they must report the usage of previously printed invoices and register for new printing with the tax authority regarding the code, quantity, serial number, and location of printing.

Article 7. Conditions and responsibilities of organizations receiving invoice printing orders.

1. Organizations receiving invoice printing orders must meet the conditions for printing operations as prescribed by law.

2. When printing invoices, they must base on the invoice model approved in writing by the Ministry of Finance, compare it with the printed invoice model approved by the authorized person, print invoices according to the signed contract with the party placing the order, specifying the quantity, code, and serial number of the invoices; after completing the printing, they must settle the contract, destroy unused printed materials, plates, and defective products.

3. They must maintain records of invoice printing orders, quarterly prepare and submit reports to the tax authority on the quantity of invoices printed for each organization or individual placing the order.

Article 8. Issuing invoices.

1. Invoices printed by the Ministry of Finance; self-printed invoices when put into use must be announced in writing about the type, form, model, and time of use of the invoices; they must bear legal responsibility for the invoices announced.

2. Organizations and individuals purchasing invoices issued by the Ministry of Finance must record or stamp their name, address, and tax identification number on the second copy of each invoice at the supply agency.

3. Procedures for purchasing invoices and procedures for registering the use of self-printed invoices are prescribed by the Ministry of Finance.

Article 9. Using invoices.

1. For organizations and individuals selling goods and services:

a) When selling or exchanging goods and services, they must issue and deliver invoices to customers as prescribed by this Decree.

In cases of retail sales of goods or provision of services with a value below the prescribed limit where the buyer does not request an invoice, issuing an invoice is not mandatory. The Ministry of Finance will specify the amount below which issuing an invoice is not mandatory.

b) When issuing an invoice, they must fill in all required indicators correctly according to the pre-printed ones on the invoice, crossing out unused indicators. The content recorded on all copies of the same invoice number must be identical.

c) They must use invoices in sequential order from the smallest to the largest number, without skipping numbers. If an error occurs requiring cancellation of an invoice, it must be crossed out and marked "void," and all copies of the canceled invoice must be retained.

d) They must properly store and retain unused or used invoices according to the relevant tax and accounting regulations.

e) They must report the use of invoices to the supply agency or registration agency no later than the 10th day of the following month, and annually report the settlement of invoice use no later than February 25 of the following year.

f) Upon merger, consolidation, dissolution, change in ownership form, bankruptcy, or cessation of operations, they must report the settlement of invoice use and return all unused invoices to the supply agency or registration agency within five days from the date of the decision.

g) When changing the invoice model, they must publicly announce the quantity and type of invoices that are no longer valid; settle and return unused invoices to the tax authority.

2. For organizations and individuals purchasing goods and services.

a) Organizations and individuals purchasing goods or services have the right and obligation to request organizations and individuals selling goods or services to establish and deliver two copies of invoices for retention and use in accordance with regulations.

b) For organizations and individuals engaged in production and business that declare and pay taxes, units benefiting from state budget funds, and units implementing projects when purchasing goods or services shall be responsible for checking the contents of the indicators recorded on the invoice, and refuse to accept invoices that incorrectly record indicators with discrepancies in value compared to the retained copy of the invoice from the seller.

c) For individuals purchasing goods or services for consumption who properly retain invoices will enjoy the benefits regarding the use of invoices in accordance with the regulations of the Ministry of Finance.

Article 10. Using invoices for purchasing agricultural, forestry, and aquatic products.

1. For organizations and individuals purchasing agricultural, forestry, and aquatic products that have not been processed from direct producers without sales invoices, they must establish purchase invoices and hand them over to the sellers; in cases where the purchased goods have a value of VND 1 million or more or multiple purchases from the same person, they must base on the ID card of the seller to accurately record: Name, address of the seller; quantity, unit price, total payment amount, and require the seller to sign and receive the second copy of the invoice.

2. For organizations and individuals producing agricultural, forestry, and aquatic products directly selling to purchasers, they must request the purchaser to establish and deliver purchase invoices in accordance with the provisions of Clause 1 of this Article; they are responsible for retaining purchase invoices as a basis for comparison when necessary.

In cases of selling goods with a value of VND 1 million or more or multiple sales to one purchasing organization or individual, they must present their ID cards so that the purchaser can issue invoices and accurately record the indicators in accordance with the provisions of Clause 1 of this Article.

Article 11. Managing invoices.

1. For the Ministry of Finance:

a) Guide and implement the establishment of books to track the import and export of invoices, registration for use, settlement of invoice usage according to regulations;

b) Regularly plan inspections of invoice usage and management by organizations and individuals printing, issuing, and using invoices;

c) Must implement the preservation and management of invoices, not allowing damage or loss of invoices;

d) Report on lost invoices; recover unused invoices due to: mergers, dissolution, cessation of operations of units registered to use invoices, changes in invoice models, invoices reported as lost but found, damaged invoices requiring destruction.

When recovering invoices for destruction, a detailed list must be established indicating the symbols, quantities, serial numbers of the invoices to be destroyed. The destruction of invoices must be approved by the Ministry of Finance and a Destruction Committee must be formed. The Destruction Committee for invoices is regulated by the Ministry of Finance.

2. For organizations and individuals using invoices:

a) Must use invoices in accordance with regulations, not allowed to buy, sell, or give invoices or use invoices of other organizations or individuals; not allowed to use invoices to declare false tax deductions, expenses, financial settlements;

b) Establish books to track, have internal rules for management and means to preserve and retain invoices in accordance with legal regulations. Not allowed to damage or lose invoices;

c) Must immediately report in writing to the agency providing or registering the use of invoices about lost invoices;

d) Must regularly inspect the use of invoices in accordance with regulations.

Chapter III

ADMINISTRATIVE VIOLATION HANDLING

Article 12. Imposing penalties for violations related to printing invoices.

1. For organizations and individuals ordering the printing of invoices:

a) A fine of VND 1,000,000 to VND 5,000,000 for the act of ordering the printing of invoices without prior written approval from the competent state authority regarding the invoice model;

b) A fine of VND 4,000,000 to VND 9,000,000 for the act of ordering the printing of invoices with duplicate symbols and numbers.

2. For organizations accepting the printing of invoices:

a) A fine of VND 1,000,000 to VND 5,000,000 for the act of accepting the printing of invoices without prior written approval from the competent state authority regarding the invoice model;

b) A fine of VND 4,000,000 to VND 9,000,000 for the act of accepting the printing of invoices with duplicate symbols and numbers.

Article 13. Handling violations related to registration and issuance of invoices.

1. A fine of VND 500,000 to VND 1,000,000 for organizations and individuals using invoices but failing to report the issuance of invoices.

2. A fine of VND 1,000,000 to VND 2,000,000 for organizations and individuals using self-printed invoices without registering the use of invoices with the tax authority.

Article 14. Handling violations related to the use of invoices.

1. A fine of VND 100,000 to VND 300,000 for the act of establishing invoices without clearly recording the indicators: signature, form of payment.

2. A fine of VND 2,000,000 to VND 7,000,000 for the act of not establishing an invoice when selling goods or services, except in cases where selling goods or services does not require the establishment of an invoice.

3. Based on the value recorded on the second copy of the invoice, fines for the act of establishing invoices with discrepancies between the copies of each invoice number are as follows:

a) A fine of VND 500,000 to VND 1,000,000 for each invoice number with a discrepancy value under VND 1,000,000;

b) A fine of VND 2,000,000 to VND 3,000,000 for each invoice number with a discrepancy value from VND 1,000,000 to under VND 5,000,000;

c) A fine of VND 4,000,000 to VND 5,000,000 for each invoice number with a discrepancy value from VND 5,000,000 to under VND 10,000,000;

d) A fine of VND 6,000,000 to VND 10,000,000 for each invoice number with a discrepancy value of VND 10,000,000 or more.

4. Based on the value recorded on the second copy of each invoice number, fines for the act of using void invoices are as follows:

a) A fine of VND 1,000,000 to VND 2,000,000 for each invoice number with a value under VND 2,000,000;

b) A fine of VND 3,000,000 to VND 5,000,000 for each invoice number with a value from VND 2,000,000 to under VND 5,000,000;

c) A fine of VND 6,000,000 to VND 20,000,000 for each invoice number with a value of VND 5,000,000 or more.

5. A fine of VND 1,000,000 to VND 2,000,000 for each invoice number for the act of using invoices that have exceeded their validity period.

6. A fine of from 2,000,000 VND to 6,000,000 VND for each invoice for the act of erasing, altering the content of the indicators of used invoices.

7. A fine of from 3,000,000 VND to 10,000,000 VND for each invoice for the act of using fake invoices.

8. The maximum fine for violations stipulated in Clauses 3, 4, 5, 6, and 7 of this Article is 100,000,000 VND.

Article 15. For violations related to invoice management.

1. A fine of from 100,000 VND to 500,000 VND for organizations and individuals who report on the use, payment, settlement of invoices late; store and preserve invoices not in accordance with regulations.

2. A fine of from 500,000 VND to 1,000,000 VND for organizations and individuals who fail to report on the use, payment, settlement of invoices.

3. A fine of from 1,000,000 VND to 2,000,000 VND for the act of receiving, purchasing invoices not in accordance with regulations for each used invoice. The maximum fine is 50,000,000 VND.

Article 16. For the act of losing, selling invoices.

1. A fine of 500,000 VND for the act of losing link 2 of each unused invoice.

2. A fine of 200,000 VND for the act of losing other links and link 2 of each used invoice.

3. For the act of giving, selling invoices:

a) In cases where giving, selling used invoices are discovered, the organization or individual giving, selling invoices shall be punished according to the provisions of Clause 4, Clause 8 of Article 14 of this Decree.

b) In cases where giving, selling unused invoices are discovered, the organization or individual giving, selling invoices shall be punished according to the provisions of Clause 1, Clause 2 of this Article.

4. The maximum fine for the acts prescribed in Clause 1, Clause 2, point b Clause 3 of this Article is 50,000,000 VND.

Article 17. Measures to address the consequences regarding tax.

Organizations and individuals who violate the provisions of Articles 14, 15, 16 of this Decree leading to tax evasion shall:

1. Be required to pay back all evaded taxes.

2. Be subject to tax penalties as provided for in the relevant Tax Laws. In cases of serious violations that require criminal prosecution under the law, they shall be criminally prosecuted.

Article 18. Other remedial measures.

1. Organizations and individuals who violate the provisions of Clauses 3, 4, 5, 6, and 7 of Article 14; Clause 3 of Article 15 of this Decree shall not be allowed to declare invoices for deduction or refund of value-added tax, nor shall they be allowed to include them in deductible expenses when calculating tax. If payments have already been made, they must return the full amount paid, deducted, refunded, or included in expenses for tax calculation. For units benefiting from state budget funds, they shall not be allowed to settle budget expenditures; for project sponsors, they shall not be allowed to settle the value of completed construction projects.

2. Organizations and individuals shall be temporarily suspended from using invoices when:

a) They engage in buying, selling invoices not in accordance with this Decree;

b) They fail to implement decisions on administrative penalties for invoice and tax violations as stipulated in this Decree;

c) The maximum period of suspension from using invoices shall not exceed three months from the date of discovery of the violation as specified in point a of this clause and from the date the organization or individual fails to comply with the penalty decision as specified in point b of this clause. If the violation is rectified before the three-month period, the suspension from using invoices will immediately cease upon completion of the rectification. If the violations remain unrectified beyond the three-month period, the measures prescribed in Clause 3 of this Article shall be applied.

3. In necessary cases, the tax authority has the right to propose to the competent state agency to revoke the Business Registration Certificate.

4. The tax authority has the right to recover expired invoices; invoices with changed formats; invoices reported lost but found later; invoices with duplicate serial numbers; damaged invoices; invoices used not in accordance with regulations; and proceeds from selling invoices contrary to the provisions of this Decree.

Article 19. Principles, procedures for handling violations, mitigating circumstances, aggravating circumstances, enforcement, and statute of limitations for imposing penalties.

The principles for handling violations, procedures for imposing penalties, mitigating circumstances, aggravating circumstances, and statute of limitations for administrative penalties for violations concerning invoices as stipulated in this Decree shall be implemented in accordance with the Administrative Violation Handling Ordinance. Organizations and individuals penalized for printing, issuing, using, and managing invoices must execute the decision within ten days from the date the competent authority issues the penalty decision. If they intentionally fail to comply with the penalty decision, they shall be enforced to comply in accordance with the law.

Article 20. Authority to handle violations.

The tax authority and specialized financial inspection agencies have the authority to handle violations concerning printing, issuing, using, and managing invoices; the authority to handle administrative violations concerning printing, issuing, using, and managing invoices shall be carried out in accordance with the provisions of Article 36 and Article 38 of the Administrative Violation Handling Ordinance.

Article 21. Determining the authority to handle administrative violations in the field of printing, issuing, using, and managing invoices.

1. The principle for determining the authority to handle administrative violations concerning printing, issuing, using, and managing invoices of this Decree shall be implemented in accordance with the provisions of Article 42 of the Administrative Violation Handling Ordinance.

2. During inspections and audits, specialized financial inspection agencies discovering organizations and individuals engaging in violations concerning printing, issuing, using, and managing invoices leading to false declarations and tax evasion must transfer the case file to the tax authority for handling the false declaration and tax evasion violations.

3. Violations concerning printing, issuing, using, and managing invoices leading to tax evasion that require criminal prosecution under the law must be documented and transferred to the competent authority for criminal prosecution by the inspection and audit agencies.

4. Judicial authorities have the responsibility to notify the results of handling violations concerning printing, issuing, using, and managing invoices to the authority that requested criminal prosecution.

Chapter IV

COMPLAINTS, REPORTING AND REWARD

Article 22. Provisions on complaints and reporting.

Complaints and resolution of complaints and reports on violations concerning invoices as stipulated in this Decree shall be carried out in accordance with the laws on complaints and reports.

Article 23. Provisions on rewards.

Organizations and individuals who contribute to detecting, reporting, inspecting, and handling violations related to printing, issuing, using, and managing invoices shall be rewarded in accordance with the provisions of the Government.

Chapter V

IMPLEMENTING PROVISIONS

Article 24. This Decree shall take effect fifteen days from the date of signature.

Clause 2 of Article 18, Article 14, Clause 3 of Article 15, and Article 16 of this Decree replace the administrative penalty regulations concerning invoice violations at points b, c, d, and đ of Clause 1 of Article 6, and point a of Clause 3 of Article 9 of Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government on administrative penalties in the accounting sector.

Article 25. The Minister of Finance shall guide the implementation of this Decree and coordinate with state agencies, political organizations, socio-political organizations, social organizations, and occupational social organizations to publicize, educate, and mobilize the people to comply with and supervise the implementation of this Decree.

Article 26. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and municipal People's Committees directly under the Central Government are responsible for implementing this Decree./.