How to handle an erroneous discount or sales promotion invoice in Vietnam?

How to handle an erroneous discount or sales promotion invoice in Vietnam?

According to the provisions in Article 19 of Decree 123/2020/ND-CP and Clause 1, Article 7 of Circular 78/2021/TT-BTC, when a erroneous discount or sales promotion invoice is discovered, it is necessary to adjust the trade discount according to the actual occurrence, specifically:

e) In terms of errors related to the value on the invoice: adjustments to increase (positive sign), adjustments to decrease (negative sign) must reflect the actual adjustments.

Case 1: e-invoices that have been issued a code by the tax authority but have not been sent to the buyer are found to have errors

If the seller finds that the e-invoice with a tax code issued but not yet sent to the buyer has errors, according to Clause 1, Article 19 of Decree 123/2020/ND-CP, the seller must notify the tax authority using Form 04/SS-HDDT in Appendix IA issued together with Decree 123/2020/ND-CP.

- Issue a new e-invoice, digitally sign it, and submit it to the tax authority to get a new invoice code, thereby replacing the previously made invoice to send to the buyer.

- The tax authority will cancel the e-invoice with the error code stored in its system.

Case 2: e-invoices that have been sent to the buyer are found to have errors by the seller or the buyer

(1) If there are errors in the buyer's name or address but the tax code and other details are correct:

- The seller notifies the buyer about the mistake on the invoice without needing to reissue the invoice.

The seller must notify the tax authority about the e-invoice errors using Form 04/SS-HDDT in Appendix IA issued together with Decree 123/2020/ND-CP, except for cases where the e-invoice without tax authority code has errors that have not yet been sent to the tax authority.

(2) In cases where errors occur in: the tax code; the amounts stated on the invoice, incorrect tax rates, tax amounts, or goods detailed incorrectly in specification or quality:

Two options can be used for e-invoices:

- The seller issues an e-adjustment invoice for the erroneous invoice. If the seller and buyer agree on a written agreement before issuing an adjustment invoice for the erroneous invoice, they will make a written agreement detailing the mistake, after which the seller issues an e-adjustment invoice for the erroneous one.

The electronically adjusted invoice must include the phrase “Adjustment for invoice model number... symbol... number... date... month... year”.

- The seller issues a new e-invoice to replace the erroneous e-one, unless the seller and the buyer have agreed on a written agreement prior to issuing a replacement invoice for the erroneous one, detailing the mistake, after which the seller issues a new e-invoice replacing the erroneous one.

The new e-invoice to replace the erroneous one must include the phrase “Replacement for invoice model number... symbol... number... date... month... year”.

The seller digitally signs the new adjusted or replacement e-invoice for the erroneous one, then sends it to the buyer (for e-invoices without a tax authority code) or to the tax authority to get a code for the new e-invoice to send to the buyer (for e-invoices with a tax authority code).

According to Point c, Clause 1, Article 7 of Circular 78/2021/TT-BTC, in cases where an e-invoice has been corrected or replaced and errors are discovered again, subsequent corrections will follow the method applied for the first error correction.

(3) When the seller issues an invoice for prepayment or during service provision:

If the seller issues an invoice for prepayment or during service provision according to Clause 2, Article 9 of Decree 123/2020/ND-CP and there is a subsequent cancellation or termination of service provision, the seller annuls the e-invoice issued and notifies the tax authority of the invoice cancellation using Form 04/SS-HDDT in Appendix IA issued together with Decree 123/2020/ND-CP.

For the aviation sector, invoices for exchanges, refunds of air transport vouchers are considered adjustment invoices without the need for information “Adjustment increase/decrease for invoice model number... symbol... date... month... year”.

Air transport enterprises are allowed to issue their invoices for cases of refund and exchange of transport documents issued by agents.

What contents are included in an e-invoice in Vietnam?

Based on Article 10 of Decree 123/2020/ND-CP and Article 4 of Circular 78/2021/TT-BTC, an e-invoice includes:

- Invoice name, invoice symbol, invoice template symbol.

- Number of invoice copies applied to the invoices printed by the tax authority as guided by the Ministry of Finance.

- Invoice number.

- Name, address, tax code of the seller.

- Name, address, tax code of the buyer.

- Name, unit of measurement, quantity, unit price of goods, services; total amount without VAT, VAT rate, total VAT per VAT rate, total VAT amount, total payment amount including VAT.

- Digital signature of the seller, digital signature of the buyer.

- Invoice issuance date.

- Time of digital signing on the e-invoice.

- Tax code for the e-invoices with tax code.

- Fees, charges under the state budget, trade discounts, promotions (if any) as guided at point e clause 6 of this Article and other related content (if any).

- Name, tax code of the organization that receives the invoice print for invoices printed by the tax authority.

- Language, numerals, and currency displayed on the invoice.

- Other contents on the invoice.

How to handle an erroneous discount or sales promotion invoice in Vietnam? (Image from the Internet)

What are the non-mandatory contents on an e-invoice in Vietnam?

Based on Clause 14, Article 10 of Decree 123/2020/ND-CP, the non-mandatory contents on an e-invoice include:

- e-invoices do not necessarily require the buyer's digital signature (including cases of issuing e-invoices when selling goods or providing services to foreign customers). If the buyer is a business establishment and the buyer and seller have an agreement where the buyer meets technical conditions to digitally sign on the e-invoice issued by the seller, then the e-invoice will have the digital signature of both the seller and buyer as agreed.

- e-invoices issued by the tax authority per transaction do not necessarily require the digital signature of the seller or buyer.

- For e-invoices of goods sold at supermarkets, shopping centers where the buyer is an individual not engaged in business, the invoice does not necessarily require the name, address, tax code of the buyer.

For e-invoices issued for gasoline sales to individual non-business customers, the criteria such as invoice name, invoice template symbol, invoice symbol, invoice number; name, address, tax code of the buyer, digital signature of the buyer; digital signature, e-signature of the seller, VAT rate do not necessarily need to be present.

- For e-invoices that are stamps, tickets, cards, the invoice does not necessarily require the seller's digital signature (except in cases where stamps, tickets, cards are e-invoices with tax code by the tax authority), the criteria of the buyer (name, address, tax code), tax amount, VAT rate. If stamps, tickets, cards have a pre-determined value, the criteria of unit of measurement, quantity, unit price do not necessarily need to be present.

- For e-documents of air transport services issued through websites and e-commerce systems following international practices for non-business individual buyers recognized as e-invoices, the invoice does not necessarily require the invoice symbol, template symbol, invoice serial number, VAT rate, tax code, buyer's address, seller's digital signature.

In cases where business organizations or non-business organizations purchase air transport services, e-documents of air transport services issued through websites and e-commerce systems following international practices for their employees, they are not recognized as invoices. Air transport service enterprises must issue e-invoices meeting all required contents for organizations whose individuals use the services.

- For construction and installation invoices; invoices for house sales with payment in installments according to contracts, the criteria of unit of measurement, quantity, unit price do not necessarily need to be present.

- For internal transport cum dispatch slips, the dispatch slips reflect internal mobilization orders, recipients, dispatchers, dispatch warehouse location, receiving location, transport vehicle. Specifically: the buyer's name reflects the recipient, the buyer's address reflects the receiving warehouse location; the seller's name reflects the dispatcher, the seller's address reflects the dispatch warehouse location and transport vehicle; not reflecting tax amount, tax rate, total payment.

For consignment delivery notes, the notes reflect contract references, transport personnel, transport vehicles, dispatch warehouse location, receiving warehouse location, product name, unit of measurement, quantity, unit price, amount. Specifically: record the number, date, and contract between organizations, individuals; name of transport person, transport contract (if any), the seller's address reflects the dispatch warehouse location.

- Interline payment invoices between airlines issued according to IATA regulations do not necessarily require the criteria: invoice symbol, template symbol, buyer's name, address, tax code, buyer's signature, unit of measurement, quantity, unit price.

- Invoices issued by air carriers for agents according to reconciliation reports between the two parties and summary tables do not necessarily require unit prices.

- For the activities of construction, installation, production, supply of products, services of a national defense security enterprise serving national defense security as regulated by the Government of Vietnam, invoices do not necessarily require the unit of measurement; quantity; unit price; the part of goods, services will state the provision of goods, services according to the contracts signed between the parties.