Can the Content of a Reduction Adjustment Invoice Be Recorded as a Negative Number?

Can contents of adjusted invoices be recorded as negative numbers?

Based on point e, clause 1, Article 7 of Circular 78/2021/TT-BTC, the regulation states:

Handling of electronic invoices, summary tables of electronic invoice data sent to tax authorities with errors in certain cases

1. For electronic invoices:

a) In the case where an issued electronic invoice has errors requiring re-issuance of the tax authority's code or needs to be dealt with by way of adjustment or replacement under Article 19 of Decree 123/2020/ND-CP, the seller can choose to use Form 04/SS-HDDT in Appendix IA issued together with Decree 123/2020/ND-CP to notify the adjustment for each erroneous invoice or notify the adjustment for multiple electronic invoices with errors and send the notification according to Form 04/SS-HDDT to the tax authority anytime but no later than the last day of the tax period in which the adjustment occurs;

b) In cases where the seller issues an invoice when collecting payments in advance or during service provision as prescribed in Clause 2, Article 9 of Decree 123/2020/ND-CP and then the service provision is canceled or terminated, the seller shall cancel the issued electronic invoice and notify the tax authority of the cancellation according to Form 04/SS-HDDT in Appendix IA issued together with Decree 123/2020/ND-CP;

c) If an electronic invoice has been issued with errors, and the seller has processed it by way of adjustment or replacement under point b, clause 2, Article 19 of Decree 123/2020/ND-CP, and later finds further errors with the invoice, the seller shall continue processing according to the method used for the initial error handling;

d) According to the notification deadline recorded on Form 01/TB-RSDT, Appendix IB attached to Decree 123/2020/ND-CP, the seller shall notify the tax authority according to Form 04/SS-HDDT in Appendix IA issued together with Decree 123/2020/ND-CP regarding checking the issued erroneous electronic invoice, clearly stating that the basis for such inspection is the tax authority's notification Form 01/TB-RSDT (including notification number and date);

đ) In cases where the electronic invoice is issued without any template symbol, invoice symbol, or invoice number errors, the seller shall only perform adjustments without cancellation or replacement;

e) Particularly for content regarding incorrect value on the invoice: adjustment increase (write as positive), adjustment decrease (write as negative) correctly reflecting the actual adjustment.

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Thus, when an error is found on an electronic invoice necessitating the issuance of an adjustment invoice, the reduction adjustment content is recorded with a negative sign in accordance with the actual adjustment.

Can contents of adjusted invoices be recorded as negative numbers? (Image from the Internet)

If an adjustment or replacement invoice is issued, is Form 04/SS-HDDT required to be sent?

In cases of handling errors on invoices as prescribed in point b, clause 2, Article 19 of Decree 123/2020/ND-CP and the provisions in point a.1, clause 3, Article 22 of Decree 123/2020/ND-CP, the taxpayer is not required to send an error notification according to Form 04/SS-HDDT to the tax authority, including:

- Invoice adjustment;

- Invoice replacement;

- Handling invoice errors via Summary Table Form 01/TH-HDDT

What acts are prohibited in the field of invoices and documents?

Prohibited acts in the field of invoices and documents are regulated in Article 5 of Decree 123/2020/ND-CP and include the following:

- Regarding tax officials

+ Causing unnecessary hassle or difficulty for organizations or individuals purchasing invoices or documents;

+ Engaging in acts of covering up or colluding with organizations or individuals to use illegal invoices or documents;

+ Accepting bribes during inspections about invoices.

- Regarding organizations, individuals selling/providing goods, services, and related organizations, individuals

+ Committing fraudulent acts, such as using illegal invoices or unlawfully using invoices;

+ Obstructing tax officials in their duties, particularly actions that harm the health or dignity of tax officials during inspections of invoices, documents;

+ Unauthorized access, alteration, or destruction of information systems regarding invoices, documents;

+ Offering bribes or carrying out other acts related to invoices, documents for illicit gain.

When is an explanation required for administrative violations regarding taxes and invoices?

Based on Article 37 of Decree 125/2020/ND-CP, the regulation states as follows:

Explanation of administrative violations on taxes and invoices

1. Cases requiring an explanation for administrative violations on taxes and invoices:

a) Administrative violations on taxes and invoices detected through tax inspection or electronic administrative violation record establishment;

b) Administrative violations prescribed in Articles 16, 17, 18; clause 3, Article 20; clause 7, Article 21; Articles 22 and 28 of this Decree.

2. Explanation of administrative violations on taxes and invoices is conducted per the legal regulations on handling administrative violations.

Thus, the following cases require explanations of administrative violations on taxes and invoices:

- Administrative violations on taxes and invoices detected through tax inspections or electronic administrative violation record establishment;

- Subsequent administrative violations:

+ Incorrect declaration leading to a deficiency in payable taxes or an increase in tax exemption, reduction, or refund at Article 16 of Decree 125/2020/ND-CP.

+ Tax evasion at Article 17 of Decree 125/2020/ND-CP.

+ Administrative violations concerning taxes for commercial banks, tax-guaranteeing parties at Article 18 of Decree 125/2020/ND-CP.

+ Violations regarding printed invoice specifications as stated in clause 3, Article 20 of Decree 125/2020/ND-CP.

+ Violations concerning printed invoice production stipulated in clause 7, Article 21 of Decree 125/2020/ND-CP.

+ Acts of giving or selling invoices as regulated in Article 22 of Decree 125/2020/ND-CP.

+ Unauthorized use of invoices as stated in Article 28 of Decree 125/2020/ND-CP.