Administrative Penalties for Tax and Invoice Violations in Vietnam
Decree 310/2025/ND-CP, effective January 16, 2026, replaces Decree 125/2020/ND-CP and introduces significant changes to administrative penalties for tax and invoice violations in Vietnam. The scope of violations has expanded to include land use fees, land and water surface rental fees, fees for granting mineral and water resource exploitation rights, after-tax profits of state-owned enterprises, and dividends from state capital in joint-stock and limited liability companies. For the first time, the decree recognizes force majeure exemptions (natural disasters, epidemics, fires, wars) from penalties if taxpayers demonstrate they took all preventive measures. Crucially, penalty liability now extends to third parties: authorized agents and organizations/individuals performing tax obligations on behalf of taxpayers will be held directly responsible for violations. This has major implications for businesses outsourcing tax compliance and accounting services. Invoice-related penalties are now structured in detailed tiers based on the number of invoices and their purpose (sales versus promotions/gifts/internal use). Fines range from VND 500,000 to VND 80 million depending on violation severity. Businesses must review their invoicing processes, especially for e-invoices, and ensure authorized representatives maintain full compliance to avoid serious legal and financial risks under this strengthened enforcement framework.
Administrative Penalties for Tax and Invoice Violations in Vietnam
Overview
On December 2, 2025, the Government of Vietnam promulgated Decree No. 310/2025/ND-CP ("Decree 310"), which amends and supplements several provisions of Decree No. 125/2020/ND-CP governing administrative penalties for tax and invoice violations. Effective from January 16, 2026, the new decree strengthens the legal framework for tax enforcement, clarifies sanctioning principles, introduces new compliance tools, and expands definitions of taxable administrative violations.
Expanded Scope of Administrative Tax Violations
A foundational change under Decree 310 is the expansion and clarification of the scope of administrative tax violations. The amended definition covers acts by organizations or individuals that breach tax administration laws, tax laws, or other revenue laws managed by tax authorities, but do not constitute criminal offenses. These acts include violations related to:
- Land use fees
- Land and water surface rental fees
- Fees for the granting of mineral exploitation rights
- Fees for the granting of water resource exploitation rights
- Remaining after-tax profits after the allocation to funds of enterprises wholly owned by the State
- Dividends and distributed profits attributable to the State's invested capital in joint-stock companies and limited liability companies with two or more members
- Other revenues in accordance with the laws on the management and investment of State capital in enterprises
This broader scope aims to consolidate the types of state budget revenues subject to tax compliance and bring a wider array of revenue streams under administrative penalty provisions, reinforcing the tax authority's oversight role.
Broader Force Majeure Exemptions
Decree 310 introduces explicit force majeure provisions for the first time in the context of tax and invoice penalties. Cases such as natural disasters, epidemics, fires, wars, strikes, riots, and other unforeseen events may now be considered for exemption from penalties if taxpayers show that they could not comply despite taking all possible preventive measures.
This change aligns administrative penalty practice with force majeure principles found in other areas of Vietnamese law and modern regulatory frameworks.
New Sanctioned Subjects and Third-Party Liability
Traditionally, tax administration penalties focused directly on the taxpayer responsible for the tax declaration and payment. Under Decree 310, this is expanded to include third parties acting on behalf of taxpayers:
- Authorized agents who perform tax obligations on behalf of a taxpayer will be held directly responsible for violations committed in the course of that authority
- Organizations or individuals legally obligated to register, declare, or pay tax on behalf of others are subject to sanctions if they commit violations
This shift recognizes the practical realities of outsourcing tax compliance and places a greater onus on appointed representatives to observe proper tax and invoicing practices.
Notably, Decree 310 also clarifies the entities subject to administrative penalties in connection with the implementation of the Global Minimum Tax under the global anti-base erosion (GloBE) rules. These include:
- Constituent entities that are required to register for tax, file tax returns, and pay supplementary corporate income tax
- Constituent entities designated by the Group to submit notifications identifying the constituent entity responsible for tax declaration and the list of constituent entities subject to Resolution No. 107/2023/QH15
Where these entities commit administrative violations as prescribed in the Decree, they shall be subject to penalties in accordance with its provisions.
Revised Penalties for Invoice and Documentation Violations
Decree 310 introduces tiered, detailed penalty structures for invoice-related violations that were previously less granular.
Under the new regime, penalties for issuing invoices at the incorrect time or failing to issue an invoice will be determined based on the number of invoices involved and whether they relate to sales or internal uses such as promotions, gifts, or employee remuneration. Fines vary from warnings and small penalties for minor violations to a lump sum of up to VND 80 million (US$3,000), based on the nature and extent of the breach.
Penalties for Issuing Invoices at the Incorrect Time
| Violation Scope | Penalty (VND) | Penalty (USD) |
|---|---|---|
| 01 invoice (promotions, samples, gifts, internal consumption, lending/borrowing/returns) | ||
| 02–<10 invoices (same cases) or 01 invoice for sale of goods/services | 500,000 – 1,500,000 | 19 – 57 |
| 10–<50 invoices (same cases) or 02–<10 invoices for sale of goods/services | 2,000,000 – 5,000,000 | 76 – 190 |
| 50–<100 invoices (same cases) or 10–<20 invoices for sale of goods/services | 5,000,000 – 15,000,000 | 190 – 570 |
| ≥100 invoices (same cases) or 20–<50 invoices for sale of goods/services | 15,000,000 – 30,000,000 | 570 – 1,141 |
| 50–<100 invoices for sale of goods/services | 30,000,000 – 50,000,000 | 1,141 – 1,900 |
Penalties for Failure to Issue Invoices
| Violation Scope | Penalty (VND) | Penalty (USD) |
|---|---|---|
| 01 invoice (promotions, samples, gifts, internal consumption, lending/borrowing/returns) | ||
| 02–<10 invoices (same case) |
Decree 310 also amends penalties for destroying invoices beyond prescribed time limits, failing to destroy invoices as required, and violations related to the provision of e-invoice services and systems, further tightening compliance expectations around invoice management.
Implications for Businesses
Businesses operating in Vietnam must take several immediate steps:
Review Tax Declaration Processes
Ensure all revenues falling under the expanded scope are properly declared, including land fees, resource exploitation fees, and state capital dividends.
Assess Authorized Representatives
If outsourcing accounting or tax services, clarify legal responsibilities in contracts and establish indemnification mechanisms. Third-party service providers now bear direct penalty liability.
Upgrade E-Invoice Systems
Ensure timely invoice issuance for all transactions, including promotions and internal consumption. The tiered penalty structure makes even small-scale non-compliance financially significant.
Prepare Force Majeure Documentation
Establish protocols to document unforeseen events and preventive measures taken, as this evidence will be critical for penalty exemption claims.
Global Minimum Tax Compliance
Multinational groups must identify constituent entities responsible for supplementary tax declarations under GloBE rules and ensure they understand their penalty exposure.
Training and Awareness
Conduct staff training on the new penalty regime, particularly for finance, accounting, and sales teams who handle invoicing and tax compliance daily.
Internal Audit
Perform comprehensive reviews of current tax and invoice practices to identify gaps before the January 16, 2026 effective date.
Conclusion
Decree 310 represents a significant strengthening of Vietnam's tax enforcement regime. The expansion of violation scope, introduction of third-party liability, and detailed invoice penalty tiers signal the government's determination to improve tax compliance and revenue collection.
For SMEs and foreign-invested enterprises, the key takeaway is that tax compliance can no longer be treated as a purely internal matter or casually delegated to external service providers without clear accountability frameworks. The new decree requires businesses to adopt more rigorous compliance systems, maintain better documentation, and exercise greater oversight over any third parties performing tax functions on their behalf.
Businesses that proactively adapt their processes before the January 2026 effective date will be better positioned to avoid the substantial financial and reputational risks associated with these strengthened administrative penalties.