Going back to the provisions in Clause 1, Article 6 of Decree 185/2013/ND-CP, then:
“Article 6. Acts of violation on business activities under the Business Registration Certificate.
- A fine ranging from VND 1,000,000 to VND 5,000,000 shall be imposed for doing business in the wrong line of business, goods or business location stated in the business registration certificate…”
Currently, according to the provisions of the Enterprise Law 2014, the content of business registration lines is no longer shown on the Business Registration Certificate but will be updated on the National Business Registration Portal. The enterprises leading to Clause 7 Article 1 of Decree 124/2015/ND-CP no longer sanction the conduct of business in the wrong line of business as stated in the business registration certificate is completely reasonable.
This does not mean that if an enterprise does not do business in the wrong line of business, it will not be penalized, but the enterprise may be penalized for the act of not notifying the change of business registration content.
Sanctions for failure to notify changes in business registration information.
When an enterprise does one or more lines of business, it must register and notify the business registration agency.
According to Article 32 of the 2014 Enterprise Law, enterprises must carry out procedures to notify the business registration authority when there is a change in business registration information and contents such as industry, profession, charter capital, and information. of the legal representative,..
In case the enterprise is late in submitting the notice, it may be warned to a fine of 5 million VND according to the provisions of Article 31 of Decree 50/2016/ND-CP.
If the business has not announced the change or addition of the business line, can the enterprise issue an invoice?
According to Article 22 of Circular 39/2014/TT-BTC on illegal invoices, as follows:
“Article 22. Illegal use of invoices
Illegal use of invoices is the use of fake invoices, invoices that have no use value or have expired.
Fake invoice means an invoice printed or created according to the issued invoice form of another organization or individual or printed or created with the same number of the same invoice symbol.
Invoices have not yet been used and invoices have been created according to the instructions in this Circular, but the issuance notice has not been completed.
An expired invoice means an invoice that has completed all procedures for issuance but the issuing organization or individual has not continued to use it; types of invoices lost after the issuance notices are reported by the issuing organizations or individuals to the tax authorities directly managing them; invoices of organizations and individuals that have stopped using tax identification numbers (also known as tax code closures).”
Besides, according to the guidance of Official Letter 1387/TCT-KK in 2015 on declaration and payment of value added tax issued by the General Department of Taxation, then:
“In case Vinkems Co., Ltd. conducts business in a business line that is not in the line of business specified in the business registration certificate, the Tax Department of Tay Ninh province is requested to check and determine if the business line of the Company is in the case of the Company. If it is not a conditional business line or a business that is prohibited from doing business, then agree with the proposal in Official Dispatch No. 297/CT-TTr dated January 26, 2015 of the Tax Department of Tay Ninh Province, specifically: accept accept the declaration of input VAT for business activities that do not belong to the lines and trades stated in the business registration certificate of Vinkems Co., Ltd. The Tax Department of Tay Ninh province guides the Company to supplement industries and trades according to regulations.”
Thus, invoices issued before the enterprise announces the change of business lines or lines of business will not be considered illegal invoices; The parties are still entitled to declare and deduct tax normally on this invoice if all the conditions of the current Tax Law are met.
In short, for industries and trades that have not yet been registered, enterprises are still entitled to issue invoices and these invoices are not considered illegal invoices.
After issuing an invoice, the enterprise must notify the business registration agency of the addition of the business line, otherwise the enterprise may be sanctioned according to the provisions of law.
