Vietnam: Revised Penalties for Invoice and Documentation Violations Under Decree 310

Decree 310 establishes tiered penalties for invoice violations based on invoice count and type, including sales and non-sales cases. Penalties range from warnings to significant fines (500,000 - 50,000,000 VND; US$19 - US$2,282). It enforces stricter rules for invoice destruction and strengthens tax officer powers. A single penalty rule consolidates fines for repeated violations, prompting businesses to enhance compliance systems and training.

Decree 310 introduces more granular, tiered penalties for invoice violations, based on the number of invoices and whether they relate to sales or non-sales cases (promotions, samples, gifts, internal consumption, lending/borrowing/returns).

Penalties for Issuing Invoices at the Incorrect Time

Violation scope	Penalty (VND)	Penalty (US$)
01 invoice (promotions, samples, gifts, internal consumption, lending/borrowing/returns)	Warning	/
02–<10 invoices (same cases) or 01 invoice for sale of goods/services	500,000 – 1,500,000	US$19 – US$57
10–<50 invoices (same cases) or 02–<10 invoices for sale of goods/services	2,000,000 – 5,000,000	US$76 – US$190
50–<100 invoices (same cases) or 10–<20 invoices for sale of goods/services	5,000,000 – 15,000,000	US$190 – US$570
≥100 invoices (same cases) or 20–<50 invoices for sale of goods/services	15,000,000 – 30,000,000	US$570– US$1,141
50–<100 invoices for sale of goods/services	30,000,000 – 50,000,000	US$1

Penalties for Failure to Issue Invoices

Violation scope	Penalty (VND)	Penalty (US$)
01 invoice (promotions, samples, gifts, internal consumption, lending/borrowing/returns)	Warning	/
02–<10 invoices (same cases) or 01 invoice for sale of goods/services	1,000,000 – 2,000,000	US$38 – US$76
10–<50 invoices (same cases) or 02–<10 invoices for sale of goods/services	2,000,000 – 10,000,000	US$76 – US$380
50–<100 invoices (same cases) or 10–<20 invoices for sale of goods/services	10,000,000 – 30,000,000	US$380 – US$1,141
≥100 invoices (same cases) or 20–<50 invoices for sale of goods/services	30,000,000 – 50,000,000	US$1,141 – US$1,901
≥50 invoices for sale of goods/services	60,000,000 – 80,000,000	US$2,282 – US$3,042

Decree 310 also tightens penalties for destroying invoices beyond time limits, failing to destroy them as required, and violations related to e-invoice services/systems.

Main procedural changes

• Single penalty rule: Repeated violations of the same type (e.g., late issuance or non-issuance) within the statute of limitations are penalized once, with the fine scaled to the total number of invoices involved — not per act. This reduces multi-count penalties and increases predictability.
• Enforcement powers: Tax officers on duty, heads of grassroots tax agencies, and directors of provincial tax offices can now impose warnings and fines (up to specified limits) for these violations.

Implications for businesses

Companies in Vietnam need stronger invoice compliance systems, including:

• Enhanced internal reviews for timely/accurate invoicing and tax declarations
• Updated contracts with tax agents reflecting new liabilities
• Robust documentation (especially for exemptions like force majeure)
• Awareness of higher stakes for systematic errors due to tiered fines

Recommendations: Update compliance manuals, train staff on new thresholds and procedures, and adopt automated invoice/tax solutions to minimize risk.