How to determine the time of issuing a VAT invoice in Vietnam?

How to determine the time of issuing a VAT invoice in Vietnam?

According to the provisions of Article 9 of Decree 123/2020/ND-CP, the time of issuing an invoice is specified as follows:

* Time of issuing an invoice for goods selling

The time of issuing an invoice for goods selling (including selling state-owned assets, confiscated assets for state funds, and selling national reserve goods) is the point of transferring ownership or usage rights of the goods to the buyer, irrespective of whether the payment has been received or not.

* Time of issuing an invoice for services provision

- The time of issuing an invoice for services provision is the point of completing the service provision, regardless of whether the payment has been received or not.

- In cases where the service provider collects money before or during the service provision, the time of issuing the invoice is the point of payment (excluding cases where the payment is a deposit or advance to ensure the fulfillment of service contracts: Accounting, auditing, financial, tax consultancy; appraisal; supervision consultancy; technical design and survey; construction investment project preparation).

Note: In cases of multiple deliveries or partial handovers for service items or stages, an invoice must be issued for each delivery or handover corresponding to the volume and value of goods or services delivered.

* Timing of issuing invoices in specific cases

(1) For services provided in large quantities, occurring frequently, requiring time for data reconciliation between the service provider and the customer/partner.

The time of issuing an invoice is when the data reconciliation is completed between the parties, but no later than the 7th day of the following month from the month of service provision, or no later than 7 days from the end of the agreed period.

The agreed period as a basis for calculating the quantity of goods and services provided is based on an agreement between the goods selling unit or service provider and the buyer.

(2) For telecommunications services (including value-added telecommunications services), information technology services (including intermediary payment services using telecommunications and information technology platforms), data reconciliation between service business establishments must be performed.

The time of issuing an invoice is when the data reconciliation on service usage fees is completed under the economic contract between the service business establishments, but no later than 2 months from the month in which the connection service fees occur.

For the provision of telecommunications services (including value-added telecommunications services) through pre-paid card sales and subscription fees upon customer service registration where customers do not request VAT invoices or do not provide a name, address, tax code, the service business establishment shall issue a consolidated VAT invoice at the end of each day or periodically within the month, recording the total revenue accrued by each service for which the buyer does not take an invoice or does not provide a name, address, or tax code.

(3) For construction and installation activities, the time to issue an invoice is the time of acceptance, handover of the works, construction items, the volume of completed construction, and installation, regardless of whether payment has been received.

(4) For real estate business organizations, infrastructure construction, house construction for sale or transfer, the time to issue an invoice is specifically regulated in each case as follows:

- For cases where ownership or usage rights have not yet been transferred: If there is payment according to project progress or payment schedule in the contract, the time to issue an invoice is the date of payment or according to payment agreement in the contract.

- For cases where ownership or usage rights have been transferred: The time to issue an invoice is the time of transferring the ownership or usage rights of the goods to the buyer, regardless of whether the payment has been received.

(5) For commercial business organizations selling air transport services through websites and e-commerce systems:

The time to issue an invoice is aligned with international practices and is at the latest no more than 5 days after the issuance of the air transport service document on the website and e-commerce system.

(6) For exploration, exploitation, and processing of crude oil activities:

- The time to issue an invoice for selling crude oil, condensate, and products processed from crude oil (including product sales under the commitment of the Government of Vietnam) is when the buyer and seller agree on the official selling price, irrespective of whether the payment has been received.

- For the sale of natural gas, associated gas, and coal gas transported via pipeline to the buyer:

The time of issuing an invoice is when the buyer and seller determine the monthly delivered gas volume but no later than 7 consecutive days from the notification of monthly conveyed gas volume by the seller.

- In case of guarantee agreements and commitments by the Government of Vietnam specifying a different time for invoice issuance, comply with the provisions of those agreements and commitments by the Government of Vietnam.

(7) Retail commercial business foundations, food and beverage service businesses operating on a direct retail store model to consumers but carrying out the full business accounting activity at the headquarters (where the headquarters signs directly the purchase and sale contracts of goods and services with generating customers and the data retained on the system does not entail demand for e-invoices from the customers):

At the end of the business day, the business bases on data from the generating receipt to compile and issue an e-invoice for all the day's goods selling and food and beverage service supply transactions.

When customers request an e-invoice, the business foundation will issue one and provide it to the customer.

(8) For electricity sales activities by power companies under the electricity market, the time of issuing an e-invoice is ascertained based on data reconciliation of payment between the electricity system operating unit and the electricity market, power production units, and electricity purchasing units following the guidance of the Ministry of Industry and Trade or the electricity purchase contract approved by the Ministry of Industry and Trade.

The latest time of issuing an invoice is the last day of the declaration and tax payment deadline for the tax obligation incurring month following the tax law stipulations.

For electricity sales activities of power companies with guarantee commitments by the Government of Vietnam concerning the payment term, the time to issue an e-invoice is based on the guarantees of the Government of Vietnam, guidance, and approval of the Ministry of Industry and Trade, and the electricity purchase contracts concluded between the electric buyer and seller.

(9) The time of issuing an e-invoice in cases of fuel retail sales at retail outlets for individual customers is at the end of each fuel sale.

The seller shall ensure full storage of e-invoices in cases of fuel sales to non-business individuals, business individuals, and ensure they can be retrieved at the tax authority's request.

(10) For cases of providing air transport services, insurance services via agencies, the time of issuing an invoice is upon completing data reconciliation between the parties but not later than the 10th day of the month following the month of occurrence.

(11) In electricity distribution unit services such as banking, securities, insurance, e-payment services, electric disconnection, and reconnection for non-business individuals or business individuals who do not require an invoice, at the end of the day or month, the unit issues a collective invoice based on detailed transaction information recorded in the day/month in the management system.

The service provider bears responsibility for the accuracy of transaction information and upon request by competent authorities, must provide a detailed service supply report.

If the customer requires an invoice per transaction, the service provider must issue an invoice to the customer.

(12) For passenger transportation businesses using taxis with fare calculation software as per legal regulations, the invoice times are as follows:

- At the end of the trip, companies, cooperatives, providing passenger taxi services with fare calculation software shall dispatch trip information to customers and the tax authority based on tax data format.

The data includes the transport business unit's name, vehicle license plate, trip distance (calculated in km), and the total fare to be paid by the passenger.

- If customers require e-invoices, they must update or send complete information (name, address, tax code) into the software or service provider.

Based on customer-provided or updated information, taxi passenger transport businesses using fare calculation software will dispatch the trip's invoice to the customer, concurrently transmitting the invoice data to the tax authority.

(13) For medical facilities providing health examination and treatment services using health examination and hospital management software, where each examination, treatment transaction, and radiography, scanning, and test services with payment vouchers are printed (hospital fees and test fees) and stored on an IT system:

- If customers (patients) do not have demand for invoices, at the end of the business day, medical facilities based on health examination and treatment information and data from receipt vouchers to issue an e-invoice for all the day's medical services.

- If the customer requests an e-invoice, the medical facility will issue one and provide it to the customer.

(14) For non-stop e-road use service fee collection activities, the e-invoice issuance date is the date the vehicle passes the toll station.

For customers using non-stop e-road use service fee collection involving one or multiple vehicles utilizing the service multiple times monthly, the service provider can issue e-invoices periodically, with the latest invoice issuing date being the month's end for the service fee incurring month.

The invoice content lists in detail each vehicle passing each toll station, including the time the vehicle passed, and the road use fee for each passage.

How to determine the time of issuing a VAT invoice in Vietnam? (Image from the Internet)

How many types of invoices are there according to regulations in Vietnam?

Based on the provisions of Article 8 of Decree 123/2020/ND-CP, the types of invoices are as follows:

(1) Value-added tax invoice

Value-added tax invoices are used by organizations declaring VAT under the deduction method for activities such as:

- Selling goods, providing services domestically;

- International transport activities;

- Exports to non-tariff zones and cases considered equivalent to export;

- Exporting goods and providing services abroad.

(2) Sales invoice

Sales invoices are used by organizations and individuals as follows:

- Organizations and individuals declaring and calculating VAT under the direct method for activities such as:

+ Selling goods, providing services domestically;

+ International transport activities;

+ Exports to non-tariff zones and cases considered equivalent to export;

+ Exporting goods and providing services abroad.

- Organizations and individuals in non-tariff zones when selling goods, providing services domestically, and when selling goods, providing services among non-tariff zone organizations and individuals, exporting goods, providing services overseas, with invoices clearly stating "For organizations and individuals in non-tariff zones".

(3) e-invoices for selling public assets

e-invoices for selling public assets are used when selling the following assets:

- Public assets in agencies, organizations, units (including state-owned housing);

- Infrastructure assets;

- Public assets assigned to enterprises by the state that are not part of business capital;

- Assets of projects using state capital;

- Assets established under public ownership;

- Public assets seized per the decisions of the authority;

- Materials, supplies recovered from handling public assets.

(4) e-invoices for selling national reserve goods

e-invoices for selling national reserve goods are used when agencies and units belonging to the national reserve system sell national reserve goods according to law.

(5) Other types of invoices include:

- Stamps, tickets, cards with specified forms and contents under this Decree;

- Air cargo transport fee receipts; international transport fee receipts; bank service fee receipts except as provided in subsection (a) with specified forms and contents per international practice and relevant legal provisions.

(6) Documents printed, issued, used, and managed include:

- Invoices such as delivery notes cum internal transport invoices

- Delivery notes for goods sent for sale by agents.

What is the format for authenticated e-invoices in Vietnam?

According to Article 12 of Decree 123/2020/ND-CP, the format for e-invoices in general is stipulated as follows:

- The format for e-invoices is technical standards indicating data types and data length of information fields for transmitting, storing, and displaying e-invoices. The format uses the XML language (XML stands for "eXtensible Markup Language" created to share e-data between IT systems).

- The format comprises two components: a component containing e-invoice business data and a component containing digital signature data. For authenticated e-invoice, there is an additional component containing data related to the tax authority code.

- The General Department of Taxation constructs and publishes the components containing e-invoice business data, digital signature data, and provides tools displaying the invoice content according to regulations in this Decree.

- Organizations and businesses selling goods, providing services when transferring e-invoice data to the tax authority directly must meet the following requirements:

+ Connect with the General Department of Taxation through a dedicated channel or MPLS VPN Layer 3 channel, including one main channel and one backup channel. Each channel should have a minimum bandwidth of 5 Mbps.

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

+ Use the SOAP protocol to package and transmit data.

- e-invoices must be displayed fully and accurately, ensuring no misleading interpretation so that the purchaser can read them using e-means.