Can goods be delivered before an invoice is issued in Vietnam?

Can goods be delivered before an invoice is issued in Vietnam?

According to Clause 1, Article 9 of Decree 123/2020/ND-CP, the regulation is as follows:

Time of invoicing

1. The time of invoicing for the sale of goods (including the sale of state assets, seized assets, state stockpile items, and national reserve goods) is the time of transfer of ownership or right to use the goods to the buyer, regardless of whether payment has been made or not.

2. The time of invoicing for service provision is the time of completion of service provision, regardless of whether payment has been made or not. If the service provider collects payment before or during the provision of service, the time of invoicing is the time of payment collection (excluding the case of deposit or advance for the contractual provision of services: accounting, auditing, financial consultancy, tax; valuation; survey, technical design; supervision consultancy; construction investment project establishment).

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The time to issue an invoice for the sale of goods is the time of transfer of ownership or right to use the goods to the buyer, regardless of whether payment has been made or not.

Therefore, as per the above regulations, delivering goods before issuing an invoice is considered issuing an invoice at the wrong time.

Can goods be delivered before an invoice is issued in Vietnam? (Image from Internet)

What is the minimum sale amount required to issue an invoice in Vietnam?

Based on Article 90 of the Law on Tax Administration 2019 regarding the principles for creating, managing, and using electronic invoices, the following is stipulated:

Principles for creating, managing, and using electronic invoices

1. When selling goods or providing services, the seller must issue an electronic invoice to deliver to the buyer in a standard data format and must complete the content according to tax law and accounting law, regardless of the value of each sale or service provision.

2. In cases where the seller uses a cash register, the seller must register to use an electronic invoice generated from the cash register, which is connected to transmit electronic data to the tax authority.

3. The registration, management, and use of electronic invoices in sales and service provision transactions must comply with laws on electronic transactions, accounting laws, and tax laws.

4. The issuance of a tax authority code on the electronic invoice is based on information of the entity from enterprises, economic organizations, other organizations, businesses, and household businesses, individual businesses are responsible for the accuracy of the information on the invoice.

5. The Government of Vietnam shall specify the details of this Article.

When selling goods or providing services, the seller must issue an electronic invoice to deliver to the buyer in a standard data format and must complete the content according to the tax law and accounting law, regardless of the value of each sale or service provision.

Therefore, when selling goods or providing services, the seller must issue an electronic invoice to the buyer, regardless of the value of each sale or service provision.

How much is the fine for issuing invoices at the wrong time in Vietnam?

Based on Article 24 of Decree 125/2020/ND-CP as supplemented by Clause 3, Article 1 of Decree 102/2021/ND-CP on administrative penalty for tax and invoice violations, the penalties for acts of violation in invoice creation in the sale of goods and services are specified as follows:

Penalties for violations of regulations on invoicing in the sale of goods, services

1. Warning for any of the following violations:

a) Issuing invoices not at the correct time without leading to late fulfillment of tax obligations and having mitigating circumstances;

b) Issuing invoices sequentially from smaller to larger numbers but using a different book (using a book with a larger serial number and not using a book with a smaller serial number), and after discovering it, the organization or individual cancels the invoices with a smaller serial number;

c) Incorrectly issuing the type of invoice as prescribed that has been delivered to the buyer or declared for tax purposes, and the seller and the buyer discover the incorrect invoice type and correct it before the competent authority announces a decision to inspect or examine at the taxpayer’s office without affecting the determination of tax obligations.

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3. A fine ranging from 3,000,000 VND to 5,000,000 VND is imposed for issuing invoices not at the appropriate time without leading to a delay in fulfilling tax obligations, except for cases specified in Point a, Clause 1 of this Article.

4. A fine ranging from 4,000,000 VND to 8,000,000 VND is imposed for any of the following actions:

a) Issuing invoices not at the correct time according to the law on invoices for the sale of goods and service provision, except for cases specified in Point a, Clause 1 and Clause 3 of this Article;

b) Issuing invoices not in sequential order from small to large numbers according to regulations, except for cases subject to a warning under Point b, Clause 1 of this Article;

c) Issuing invoices with a date earlier than the purchase date of the tax authority’s invoice;

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Therefore, for issuing invoices at the wrong time, depending on the severity of the violation, a business that issues invoices at the wrong time may receive a warning or a fine ranging from 3 - 5 million VND or from 4 - 8 million VND. Specifically:

- A warning is issued for invoices not at the correct time but do not lead to late fulfillment of tax obligations and have mitigating circumstances.

- A fine ranging from 3,000,000 VND to 5,000,000 VND for issuing invoices not at the correct time but do not lead to late fulfillment of tax obligations.

- A fine ranging from 4,000,000 VND to 8,000,000 VND for issuing invoices not at the correct time according to the law on invoices for the sale of goods and service provision.

Note: The above-mentioned fines are applied to organizations. For the same violation, the fine for individuals is half of that for organizations. (According to Point a, Clause 4, Article 7 of Decree 125/2020/ND-CP)