Haven’t completed electronic tax registration in Vietnam? Here’s what your business could face.

Delaying or overlooking electronic tax registration in Vietnam is more than a minor administrative error — it can expose your business to serious legal, financial, and operational risks.

Let’s break down 4 major consequences you may face if your business fails to comply in time:

Legal risks can cause businesses to be fined and have their operations stagnant.

 1. LEGAL RISK – Fines up to VND 10 million for delayed electronic tax registration in Vietnam

According to Article 10, Decree 125/2020/NĐ-CP, businesses that delay electronic tax registration for more than 91 days may be fined up to VND 10 million.

Failure to comply with the electronic tax procedures can also lead to:

• Inability to issue VAT invoices

• Interest charges for late payments

• Suspension of your company’s tax code — effectively freezing your operations

Real-life case: Many newly registered companies in Vietnam forget to register electronically and only discover the error after receiving a penalty notice. This can damage your legal track record and erode trust with partners, right from day one.

2. BUSINESS RISK – Inability to issue e-invoices

Under Decree 123/2020/NĐ-CP, as of 2022, all businesses in Vietnam are required to use e-invoices. To do so, they must complete electronic tax registration and obtain a digital signature.

If this step is skipped:

• The Tax Authority's system will not validate your invoices

• You cannot issue legal VAT invoices

• You risk losing deals with large companies or government-related clients

  
  

Outcome: Lost contracts, reduced competitiveness, and a reputation for non-compliance.

3. FINANCIAL RISK – Late payment interest & tax audit exposure

According to Vietnam’s Law on Tax Administration No. 38/2019/QH14, businesses that delay tax payments are subject to 0.03% daily interest on the outstanding amount.

Example:

• Corporate Income Tax (CIT) payable: VND 30 million

• 10 days late = approx. VND 900,000 in interest

• Add penalties → total damage exceeds VND 1.5 million

Plus: You may be flagged as a “high-risk taxpayer” — increasing the likelihood of audits or inspections by tax authorities.

4. OPERATIONAL RISK – Tax code suspension

Under Article 125, Law on Tax Administration No. 38/2019/QH14, repeated violations of tax obligations can result in the suspension of your company’s tax code.

This means you will be unable to:

• Issue VAT invoices

• Sign new contracts

• Open or use corporate bank accounts

• Complete legal procedures with authorities

Impact:Your entire business operation may be frozen — a critical threat, especially if your company is expanding, raising capital, or serving high-volume clients.

Delaying electronic tax registration in Vietnam is not just a minor oversight. It can trigger a chain of consequences: fines, lost business opportunities, financial penalties, and legal restrictions.

As tax regulations become increasingly strict and digitized, compliance is no longer optional — it’s a strategic necessity.

🔎 Need help? Our legal team can assist you in completing your tax registration in under 5 minutes — ensuring your business remains safe, compliant, and ready for growth.

Source: thuvienphapluat.vn