Administrative Penalties for Tax and Invoice Violations: Key Amendments and Business Implications

The introduction of Decree No. 310/2025/ND-CP by the Vietnamese government marks a significant overhaul of the administrative penalties for tax and invoice violations, effective from January 16, 2025.

Find Business Support

Have a question about tax liability in Vietnam? Contact our Tax Team

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 on governing administrative penalties for tax and invoice violations. Effective from January 16, 2025, the new decree strengthens the legal framework for tax enforcement, clarifies sanctioning principles, introduces new compliance tools, and expands definitions of taxable administrative violations.

This article explains the key amendments under Decree 310, assesses their implications for businesses operating in Vietnam, and outlines the current tax enforcement landscape that enterprises must navigate in the coming year.

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; and
• 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 also 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:

Find Business Support

Enhancing internal audit and risk management

• Constituent entities that are required to register for tax, file tax returns, and pay supplementary corporate income tax; and
• 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.

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.

Procedural changes: single penalty rule and enforcement authorities

Another significant amendment under Decree 310 concerns how repeated violations of the same type are treated administratively.

Rather than penalizing each individual act separately, the decree introduces a principle of a single penalty for behaviors such as issuing invoices at the incorrect time or failing to issue invoices, where multiple violations of the same nature may occur within the statute of limitations. The fine applied will reflect the number of invoices involved rather than each discrete act.

Find Business Support

Our accounting services ensure accurate compliance for your business in Asia.

This change reduces the administrative burden of multi-count penalties and introduces a degree of predictability for businesses in managing compliance exposures.

The decree also strengthens the authority of tax officials and hierarchical enforcement powers. Tax officers on duty, heads of grassroots tax agencies, and directors of provincial tax offices are granted explicit powers to impose warnings and monetary fines, up to specified limits, for defined categories of violations.

Implications for compliance and internal controls

For businesses operating in Vietnam, the amendments under Decree 310 strengthen the need for robust tax and invoice compliance systems. Key implications include:

• Enhanced internal review mechanisms to ensure that all invoicing and tax declaration activities are timely, accurate, and aligned with legal requirements.
• Contractual safeguards with third-party tax agents, reflecting the new liability framework.
• Documentation and record-keeping, particularly where exemptions may be claimed due to force majeure events or other mitigating circumstances.
• Revised compliance thresholds, including tiered fine structures for invoice-related violations, raising the stakes for systematic errors.

Companies should consider updating internal compliance manuals, training staff on new penalty thresholds and enforcement procedures, and investing in technology solutions for automated invoice reporting and tax filings to avoid amplified penalties.

The evolving tax enforcement landscape in Vietnam

Find Business Support

Seamlessly Manage Your Operations Across Multiple Asian Markets

Decree 310 is introduced as Vietnam’s tax administration increasingly emphasizes digitalization, transparency, and alignment with international standards. Mandatory e-invoicing systems, electronic tax filing, and improved data-sharing capabilities are all strengthening compliance efforts, raising the risk of penalties where controls are weak or outdated.

Vietnam’s tax authorities have also pursued broader reforms in tax dispute resolution, competition law, and cross-border information exchange, signaling a comprehensive approach to modernizing the business tax framework.

While this progress offers long-term benefits in terms of clarity and predictability, the short-term impact is an increased administrative burden on businesses to align operations with evolving regulatory standards.

Outlook and next steps for businesses

As Decree 310 takes effect from January 16, 2026, companies should prioritize compliance readiness. Transitional provisions allow the continued application of previous decree rules to violations that occurred before the effective date, but to violations discovered after, the new rules will apply. Businesses with outstanding tax and invoice issues should assess whether legacy practices need remediation under the updated framework.

For international investors and domestic enterprises alike, understanding these changes is essential to maintain tax compliance, manage risk, and support sustainable growth within Vietnam’s increasingly digitalized regulatory landscape.

See also: Vietnam’s Tax and Accounting Updates for Businesses in 2026

• Previous Article New National Center Backs Vietnam’s Semiconductor Push
• Next Article