How to handle the case where the seller is unable to issue authenticated e-invoices in Vietnam?

What is an authenticated e-invoice in Vietnam?

According to point a, clause 2, Article 3 of Decree 123/2020/ND-CP, an authenticated e-invoice is an e-invoice that is coded by the tax authority before being sent to the buyer by the organization or individual selling goods or services.

How to handle the case where the seller is unable to issue authenticated e-invoices in Vietnam?

Based on the regulations in Article 20 of Decree 123/2020/ND-CP, in cases where a seller of goods or services uses an authenticated e-invoice but encounters an issue preventing its use, they should contact the tax authority or service provider for assistance in resolving the issue.

- During the resolution period, if the seller of goods or services requires the use of an authenticated e-invoice, they should go to the tax authority to use the authenticated e-invoice.

- If the tax authority's code issuance system encounters issues, the General Department of Taxation will implement technical solutions to switch to a backup system and will notify via the e-information portal of the General Department of Taxation about the described issues.

- The General Department of Taxation will select some service providers of e-invoices that meet certain conditions to authorize them to issue e-invoice codes when the tax authority system encounters issues. Specifically:

+ If the issue with the tax authority cannot be remedied in time, the tax authority shall provide pre-printed invoices from the tax authority for some organizations and individuals to use.

+ Once the tax authority's coding system is restored, the tax authority will notify organizations and individuals to continue using e-invoices with the tax authority code no later than 2 working days from the date specified in the tax authority's notice. Organizations and individuals must send a report on the usage of paper invoices purchased from the tax authority according to Form No. BC26/HDG in Appendix 1A issued with Decree 123/2020/ND-CP.

How to handle the case where the seller is unable to issue authenticated e-invoices in Vietnam? (Image from the Internet)

How to handle errors in authenticated e-invoices already sent to the buyer in Vietnam?

If an authenticated e-invoice that has been sent to the buyer is found to have errors by the seller, the process is handled according to clause 2, Article 19 of Decree 123/2020/ND-CP as follows:

(i) If the error is in the buyer's name or address but not the tax identification number, and other contents are correct, the seller must notify the buyer of the invoice error and does not need to issue a new invoice.

The seller is required to notify the tax authority of the erroneous e-invoice using Form No. 04/SS-HDDT in Appendix 1A accompanying Decree 123/2020/ND-CP, except in cases where the erroneous e-invoice without a tax authority code has not been submitted to the tax authority.

(ii) In cases of errors such as the tax identification number, amount, tax rate, tax amount, or incorrect description of goods/services on the invoice, one of the following two methods may be chosen:

+ The seller issues an adjustment e-invoice for the erroneous invoice. If the seller and buyer agree to draft a written agreement before issuing an adjustment invoice for the erroneous invoice, a documented agreement must be prepared by both parties specifying the error, followed by the seller issuing the adjustment e-invoice.

An adjustment e-invoice for an erroneous invoice must have the annotation “Adjustment for invoice Form No... symbol... number... date... month... year”.

+ The seller issues a new e-invoice to replace the erroneous e-invoice unless the seller and buyer agree to draft a written agreement before issuing a replacement invoice for the erroneous invoice. In this case, a documented agreement must be prepared by both parties specifying the error, followed by the seller issuing a new e-invoice to replace the erroneous invoice.

A new replacement e-invoice must have the annotation "Replacement for invoice Form No... symbol... number... date... month... year".

The seller signs the new e-invoice to adjust or replace the issued erroneous e-invoice and then sends it to the buyer (in the case of e-invoices without a tax authority code) or sends it to the tax authority for coding to send to the buyer (in the case of authenticated e-invoices).

(iii) For the aviation industry, the invoice for ticket changes and refunds is considered an adjustment invoice and does not need the note “Adjustment increase/decrease for invoice Form No... symbol... date... month... year". Airline companies are permitted to issue their invoices for cases of adjustments, exchanges, and refunds of transportation documents issued by agents.