How to handle errors in the e-invoice datasheets sent to the tax authorities in Vietnam?

How to handle errors in the e-invoice datasheets sent to the tax authorities in Vietnam?

The handling of errors in the e-invoice datasheets sent to the tax authorities is regulated under Article 7 of Circular 78/2021/TT-BTC as follows:

- In cases where the e-invoice already issued has errors and needs to be reissued with a tax authority code or requires correction or replacement as per legal regulations, the seller must notify the adjustment for each erroneous invoice or notify the adjustment for multiple erroneous e-invoices and send this notification to the tax authority in accordance with legal regulations.

The notification can be sent at any time but no later than the final day of the VAT declaration period in which the e-invoice adjustment arises;

- If the seller issues an invoice when collecting payment in advance or during service provision, and subsequently there arises a cancellation or termination of the service provision, the seller must cancel the issued e-invoice and notify the tax authority about the invoice cancellation as per legal regulations.

- If errors are found in an issued e-invoice and have been handled through correction or replacement, and further errors are discovered, the seller will apply the same handling method used for the initial error;

- Within the legal notification deadline, the seller must notify the tax authority about the inspection of the erroneous issued e-invoice, clearly stating the basis for inspection as Tax Authority Notification Form No. 01/TB-RSDT (including the notification number and date);

- In cases where, according to regulations, the e-invoice is created without an invoice form symbol, invoice symbol, or erroneous invoice number, the seller only performs adjustments without canceling or replacing;

- Specifically, for value errors on the invoice: adjust upward (positive sign) or adjust downward (negative sign) in accordance with the actual adjustment.

How to handle errors in the e-invoice datasheets sent to the tax authorities in Vietnam? (Image from the Internet)

What is an e-invoice in Vietnam?

Pursuant to Clause 2, Article 3 of Decree 123/2020/ND-CP, it is regulated as follows:

Terminology Explanation

In this Decree, the following terms are understood as follows:

1. Invoice is an accounting record created by organizations or individuals selling goods or providing services, recording the sale of goods or provision of services. Invoices are presented in the form of e-invoices or invoices printed by the tax authority.

2. e-Invoice is an invoice with or without a tax authority code, presented in e-data format by organizations or individuals selling goods or providing services, using e-means to record information about goods sales or service provision in accordance with the laws on accounting and tax, including cases where the invoice is generated from a cash register linked for e-data transfer to the tax authority, where:

a) An e-Invoice with a tax authority code is an e-invoice coded by the tax authority before the seller sends it to the buyer.

The tax authority code on the e-invoice includes a transaction number as a unique sequence generated by the tax authority’s system and a string of characters encoded by the tax authority based on the seller's information on the invoice.

b) An e-Invoice without a tax authority code is an e-invoice issued by the seller to the buyer, not including a tax authority code.

3. Printed Invoices by the Tax Authority are paper invoices printed by the tax authority for sale to organizations and individuals who qualify for purchasing invoices from the tax authority, for use when selling goods or providing services as stipulated in Article 23 of this Decree.

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Therefore, an e-invoice is an invoice with or without a tax authority code presented in e-data format by the organization or individual selling goods or providing services, using e-means to record information on goods sales or service provision as per accounting and tax laws, including cases where the invoice is generated from a cash register linked for e-data transfer with the tax authority.

What are prohibited acts in the field of invoices and records in Vietnam?

According to Article 5 of Decree 123/2020/ND-CP, the prohibited acts in the field of invoices and records include:

(1) Concerning Tax Officials

- Causing inconvenience or difficulties for organizations or individuals purchasing invoices or records;

- Engaging in acts of concealment or collusion with organizations or individuals to misuse invoices or records;

- Accepting bribes during invoice inspection or examination.

(2) Concerning Organizations, Individuals Selling Goods, Providing Services, and Those with Rights and Obligations Related

- Engaging in fraudulent acts such as misusing invoices or records illegally;

- Obstructing tax officials in the performance of their duties, specifically acts that harm the health or dignity of tax officials during invoice inspection or examination;

- Illegally accessing, altering, destroying invoice or record information systems;

- Offering bribes or engaging in other acts related to invoices or records for illicit benefits.