Whether a business can issue VAT invoices after terminating the tax identification number?

A tax identification number (TIN) is a crucial “gateway” for businesses to engage in commercial activities and fulfill tax obligations. When this “gateway” is closed, i.e., the business’s tax identification number is terminated, how will the issuance of VAT invoices proceed? Through this article, Viet An Law will clarify the legal question of whether a business can issue VAT invoices after terminating the tax identification number.

Whether a business can issue VAT invoices after terminating the tax identification number?

Under Article 39 of the Law on Tax Administration 2019, the tax identification number of a business may be terminated under the following circumstances:

• The business is not operating at its registered address (only businesses violating this provision are eligible for TIN reinstatement);
• The business ceases operations, dissolves, or goes bankrupt;
• The business has its Enterprise Registration Certificate revoked;
• The business undergoes reorganization (division, separation, merger, consolidation).

Additionally, under Point a, Clause 1, Article 16 of Decree 123/2020/ND-CP regulating invoices and documents, in cases where a business’s TIN is terminated, the business must cease using electronic invoices with or without the tax authority’s code. Thus, when a business falls under cases where its TIN is terminated, it must simultaneously cease using electronic invoices, indicating that the business cannot issue VAT invoices except where otherwise prescribed by law.

Cases permitting the issuance of VAT Invoices after TIN termination

• In cases where a business’s tax identification number has been terminated as prescribed in Point a, Clause 2, Article 13 of Decree 123/2020/ND-CP and there arises a need to issue sales invoices for asset liquidation, the tax authority may issue electronic invoices with a code to the business.
• The competent tax authority for issuing electronic invoices to businesses with terminated TINs on a per-transaction basis is the tax authority managing the locality where the organization or business registered for tax, business registration, or the location of the head office, branch, representative office, or place of sales or service provision.
• Businesses eligible to receive electronic invoices with the tax authority’s code on a per-transaction basis must submit a request for invoice issuance in accordance with Decree 123/2020/ND-CP. Specifically, they must complete and submit Form 06/DN-PSDT to the competent tax authority and access the tax authority’s electronic invoice system to generate invoices.
• After the business fulfills its tax declaration and payment obligations as prescribed by tax law, the tax authority is responsible for issuing the verification code for the electronic invoice generated by the business on the same working day. The business is responsible for the accuracy and truthfulness of all information stated on the electronic invoice issued on a per-transaction basis.

Procedures for tax identification number termination

TIN Termination Dossier

• Application for TIN termination using Form 24/DK-TCT, issued under Circular 105/2020/TT-BTC.
• Copies of supporting documents, including:
  • Copies of division decisions, merger contracts, or consolidation contracts.
  • Copies of decisions or notices from the business or cooperative regarding the cessation of branch or representative office operations; copies of decisions to revoke branch or representative office registration certificates from the competent authority.
  • Copies of contract liquidation documents or documents regarding the transfer of entire contributed capital related to petroleum contracts for investors involved in petroleum agreements.
  • Copies of decisions to revoke household business registration certificates.

Frequently Asked Questions

Can a business reapply for a TIN after cancellation?

In certain cases, this may be possible. Under Point b, Clause 3, Articles 39 and 40 of the Law on Tax Administration 2019, the status of a terminated TIN is as follows:

• For businesses whose TINs are canceled due to reorganization, a new TIN registration will be conducted as if registering a new TIN.
• For businesses whose TINs are canceled but qualify for reinstatement, procedures for TIN reinstatement (i.e., restoring the old TIN) will be carried out.

Can a business have more than one TIN?

According to Point a, Clause 3, Article 30 of the Law on Tax Administration 2019, each business is issued only one TIN for the entire duration of its operations, from tax registration until TIN termination.

What obligations must be fulfilled before TIN termination?

Pursuant to Clause 1, Article 15 of Circular 105/2020/TT-BTC, taxpayers must fulfill the following obligations:

• Submit reports on invoice usage as prescribed by law;
• Complete tax declaration, and tax payment, and resolve any overpaid tax amounts or uncredited VAT (if any);
• In cases where the parent company has dependent units, all dependent units must complete TIN termination procedures before the parent company’s TIN is terminated.

What are the penalties for issuing illegal invoices in Vietnam?

Pursuant to Clauses 5 and 2, Article 11 of Circular 10/2014/TT-BTC, violations involving the use of illegal invoices may result in administrative penalties or criminal prosecution, and the invoices in question must be canceled.

Can TIN termination be processed online?

Yes, TIN termination procedures can be conducted via the electronic tax portal at https://thuedientu.gdt.gov.vn/.

Penalties for failing to notify of TIN termination

• Monetary fines: This is the most common form of penalty. The specific fine amount depends on the severity, duration of the violation, and relevant legal provisions at the time.
• Criminal liability: In cases of serious violations, particularly tax evasion, criminal prosecution may apply.
• Transactional difficulties: Failure to terminate the TIN may prevent the business from conducting tax-related transactions, such as obtaining new business licenses, operational permits, or participating in bidding.
• Reputation damage: Violations of tax laws negatively affect the reputation of the business or individual.

The above legal consultation by Viet An Law addresses the issue: “Whether a business can issue VAT invoices after terminating the tax identification number?”. For further inquiries regarding VAT invoices, please contact Viet An Tax Agent for more detailed and specific advice. We sincerely thank you for your attention!