E-invoicing is the most frequently fined compliance area for FDI enterprises in Vietnam — not because companies act in bad faith, but because invoicing flows involving foreign customers, parent companies and cross-border service providers easily drift away from the timing and procedural rules of Decree 123/2020/ND-CP (as amended by Decree 70/2025/ND-CP). The penalty framework sits in Decree 125/2020/ND-CP (as amended by Decree 102/2021/ND-CP); the amounts below apply to organisations, with individuals fined at half the corresponding level.
Timing and procedural errors: Article 24 of Decree 125/2020/ND-CP
The most common error is issuing an invoice at the wrong time (invoice timing for goods and services is set by Article 9 of Decree 123/2020/ND-CP). Where the mistiming does not delay tax obligations, the fine is VND 3–5 million (Clause 3, Article 24); otherwise it falls under Clause 4, Article 24: VND 4–8 million. The same VND 4–8 million bracket covers other mistakes FDI firms commonly make: invoices not issued in numerical sequence, invoice dates preceding the purchase of tax-authority invoices, the wrong invoice type already delivered to the buyer or declared, e-invoices issued before the tax authority’s acceptance notice, invoices issued during a business suspension, and cash-register e-invoices not connected for data transfer to the tax authority. The heaviest item in Article 24 is failing to issue an invoice when selling goods or supplying services: VND 10–20 million (Clause 5), plus compulsory issuance of the invoice where the buyer requests it. Late or missing transfer of e-invoice data to the tax authority is penalised separately under Article 30 of the same decree, on an ascending scale that reaches VND 10–20 million where transfer is 11 or more working days late or never made.
Not invoicing foreign customers or the parent company is still “failure to issue”
A distinctly FDI misconception is that transactions with overseas buyers — management fees and royalties charged to the parent, services supplied to foreign customers — need no Vietnamese invoice because the counterparty has no Vietnamese tax code and cannot use the e-invoice. There is no such exception: the duty to issue an invoice attaches to the sale of goods or supply of services in Vietnam, regardless of the buyer’s nationality or need for an invoice. Exported services are still invoiced with a regular electronic VAT invoice (qualifying for the 0% rate is a separate tax-file question). Skipping invoices for parent-company charges is the shortest route to the VND 10–20 million bracket in Clause 5, Article 24, and it also makes booked revenue diverge from the foreign-currency inflows on the capital account — a mismatch both the tax authority and banks reconcile during inspections.
The heaviest group: unlawful invoices, and how self-remediation mitigates
One level up is using unlawful invoices, or unlawfully using invoices, under Articles 4 and 28 of Decree 125/2020/ND-CP: VND 20–50 million, plus compulsory cancellation of the invoices used. For FDI enterprises the risk usually comes from the purchase side: a domestic supplier that has absconded, or fictitious invoices the company did not know about. If an unlawful invoice was used in a filing that reduced tax payable, the case shifts to tax treatment: a 20% penalty on the under-declared tax where the buyer proves the fault lay with the seller and its bookkeeping was complete, or treatment as tax evasion (one to three times the evaded tax, Article 17) where it cannot. Conversely, early self-detection and remediation are mitigating circumstances under Article 9 of the Law on Handling of Administrative Violations: issue adjustment or replacement invoices (since 1 June 2025, Decree 70/2025/ND-CP has abolished invoice cancellation — erroneous invoices are handled only by adjustment or replacement under Article 19 of Decree 123/2020/ND-CP), file supplementary tax returns before the tax authority announces an inspection decision, and pay any shortfall with late-payment interest. In practice, the same error almost always attracts the low end of the bracket when self-declared, and far heavier treatment when discovered by the authority.
Frequently asked questions
Which invoice errors are FDI enterprises most often fined for?
The top three are: invoices issued at the wrong time (especially progress-billed services and parent-company management fees), failure to issue invoices for transactions with foreign customers or the parent company, and late transfer of e-invoice data to the tax authority. A separate high-risk group is purchasing invoices from absconded suppliers (unlawful invoices, Article 28 of Decree 125/2020/ND-CP).
How much is the fine for issuing an invoice at the wrong time?
Under Article 24 of Decree 125/2020/ND-CP: VND 3–5 million if no tax obligation is delayed (Clause 3); VND 4–8 million in other cases (Point a, Clause 4). Individuals are fined at half the organisational level.
What happens if no invoice is issued to a foreign customer?
It is treated as failure to issue an invoice when supplying services: VND 10–20 million under Clause 5, Article 24 of Decree 125/2020/ND-CP, plus compulsory issuance of the invoice where the buyer requests it. A foreign buyer without a Vietnamese tax code is not a ground for exemption.
Can the fine be reduced if the company self-detects and fixes the error?
Yes. Voluntary declaration and remediation of consequences are mitigating circumstances under Article 9 of the Law on Handling of Administrative Violations. The correct sequence is: issue an adjustment or replacement invoice under Article 19 of Decree 123/2020/ND-CP, file supplementary returns and pay the shortfall with late-payment interest before an inspection decision is announced — the fine is then usually set at the low end of the bracket and evasion treatment is avoided.
This article has been quality-reviewed by the FLAW AI Legal Council
