Are public service providers of Vietnam required to issue invoices when receiving charitable donations?

Are public service providers of Vietnam required to issue invoices when receiving charitable donations?

Pursuant to Article 4 of Decree 123/2020/ND-CP, regulations are as follows:

Principles of issuing, managing, and using invoices and records

1. When selling goods or providing services, the seller must issue an invoice to the buyer (including cases where goods and services are used for promotion, advertisement, samples; goods and services used for gifting, bartering, exchanging, paying employees, and internal consumption (except for goods circulating internally for production continuation); issuing goods in forms of lending, borrowing, or returning goods) and must fully record the contents as stipulated in Article 10 of this Decree. In the case of using e-invoices, the data format must comply with tax authority standards as specified in Article 12 of this Decree.

According to the conclusion in Official Dispatch 18553/CTHN-TTHT of 2023 providing guidance on invoices when receiving sponsorship money issued by the Hanoi Tax Department:

In cases where businesses and organizations receive sponsorship money as stipulated in Clause 1 Article 5 of Circular No. 219/2013/TT-BTC of the Ministry of Finance, they are not required to declare and pay tax. Businesses and organizations should create receipts following regulations (not required to issue invoices).

In cases where businesses and organizations receive sponsorship funds from other organizations or individuals to provide services like repairs, warranties, promotions, advertising, they must issue invoices to the buyer as prescribed in Clause 1 Article 4 of Decree 123/2020/ND-CP, and must record all contents as required in Article 10 of Decree 123/2020/ND-CP. If using e-invoices, they must comply with the data format standards of the tax authority as specified in Article 12 of Decree 123/2020/ND-CP and must declare and pay taxes as required.

Charitable donations received do not necessitate issuing an invoice, however, if a public service provider receives sponsorship or charitable funds from organizations or individuals to conduct services for them, like repairs, warranties, promotions, or advertising, they must issue invoices as per regulations (it is essential to consider the purpose).

Are public service providers of Vietnam required to issue invoices when receiving charitable donations? (Image from the Internet)

What are requirements for sellers when directly transmitting data to tax authorities in Vietnam?

Pursuant to Clause 4 Article 12 of Decree 123/2020/ND-CP, it is regulated as follows:

e-Invoice Format

1. The e-invoice format is a technical standard defining the data type and length of information fields for transmitting, storing, and displaying e-invoices. The e-invoice format uses the XML (eXtensible Markup Language) format for the purpose of sharing e-data between IT systems.

2. The e-invoice format consists of two components: the component containing e-invoice business data and the component containing digital signature data. For e-invoices with tax authority codes, there is an additional component that contains tax authority-related code data.

3. The General Department of Taxation develops and announces the component containing e-invoice business data, the component containing digital signature data, and provides tools to display the content of e-invoices as prescribed in this Decree.

4. Organizations and enterprises selling goods or providing services must meet the following requirements when transmitting e-invoice data directly to the tax authority:

a) Connect with the General Department of Taxation through a leased line or MPLS VPN Layer 3 channel, consisting of one primary and one backup transmission channel. Each channel must have a minimum bandwidth of 5 Mbps.

b) Use a Web Service or Message Queue (MQ) with encryption as the method of connection.

c) Use the SOAP protocol to package and transmit data.

Therefore, to perform the above task, it is required to connect with the General Department of Taxation through a leased line or MPLS VPN Layer 3 channel, consisting of one primary and one backup transmission channel. Each channel must have a minimum bandwidth of 5 Mbps. Use a Web Service or Message Queue (MQ) with encryption as the method of connection; use the SOAP protocol to package and transmit data.

What are procedures for suspension of the use of e-invoices in Vietnam?

Pursuant to Clause 2, Article 16 of Decree 123/2020/ND-CP, the procedure to suspend the use of e-invoices is outlined as follows:

- The directly managing tax authority sends a notification to the taxpayer belonging to the cases specified in Points d, e, and g of Clause 1 of this Article, requesting the taxpayer to provide explanations or supplement information and related records regarding the use of e-invoices.

- Taxpayers provide explanations or supplement information and records within 02 working days from the date the tax authority issues the notification. Taxpayers may attend the tax authority directly for explanations or provide supplementary information, records, or in writing.

- Taxpayers continue using e-invoices or provide explanations, specifically:

+ In cases where taxpayers have adequately explained or supplemented information and records and can justify the use of e-invoices in compliance with legal provisions, the taxpayer may continue using e-invoices.

+ In cases where taxpayers have explained or supplemented information and records but cannot justify the use of e-invoices in compliance with legal provisions, the tax authority will continue to notify the taxpayer to supplement the information and records. The deadline for supplementation is 02 working days from the date the tax authority issues the notification.

- If the deadline per notification passes without the taxpayer providing explanations or supplementary information and records, the tax authority will issue a notification requesting the taxpayer to cease using e-invoices with codes of the tax authority or cease using e-invoices without codes of the tax authority and proceed according to regulations.