Is a “+” mark be specified in the invoice for handling of erroneous invoices in Vietnam?

Is a “+” mark be specified in the invoice for handling of erroneous invoices in Vietnam?

Based on Point e Clause 1 Article 7 of Circular 78/2021/TT-BTC:

Handling of e-invoices and e-invoice datasheets sent to tax authorities with errors in certain cases

1. For e-invoices:

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b) In cases where the seller issues an invoice when receiving payment in advance or during service provision as stipulated in Clause 2 Article 9 of Decree 123/2020/ND-CP, and subsequently arises a cancellation or termination of the service provision, the seller will cancel the e-invoice already issued and notify the tax authority about the cancellation according to Form No. 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP;

c) In cases where the e-invoice already issued contains errors, and the seller has processed according to the adjustment or replacement mode as stipulated in Point b Clause 2 Article 19 of Decree 123/2020/ND-CP, and subsequently, the invoice continues to show errors, the subsequent treatments will follow the initially applied method when processing the first error;

d) According to the notification deadline on Form No. 01/TB-RSDT in Appendix IB issued with Decree 123/2020/ND-CP, the seller will notify the tax authority according to Form No. 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP regarding the inspection of the e-invoice containing errors, specifying the inspection basis is the notification Form No. 01/TB-RSDT from the tax authority (including notification number and notification date);

dd) In cases where e-invoices are issued without an invoice form symbol, invoice code, or invoice number having errors, the seller only adjusts without canceling or replacing;

e) Specifically, for values on invoices containing errors: increase adjustment ( “+” mark), decrease adjustment (negative sign) must align with the actual adjustment conditions.

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Thus, when issuing an correction invoice for an e-invoice with errors, the increased/decreased adjustment content must clearly state a “+” mark (when increased) and a negative sign (when decreased) in line with actual adjustments.

Is a “+” mark be specified in the invoice for handling of erroneous invoices in Vietnam? (Image from Internet)

If the buyer's name is wrong, shall a correction invoice be issued in Vietnam?

According to the provisions of Article 26 of Decree 123/2020/ND-CP, the contents are as follows:

Handling for Invoices Purchased from Tax Authorities that Have Been Issued

1. In cases where invoices are issued but not handed to the buyer, if errors are discovered, the seller will cross out sections of the invoice and retain the incorrect issued invoice;

2. In cases where issued invoices contain errors in the name or address of the buyer but accurately record the buyer's tax code, a reconciliation document is prepared, and no correction invoice is required.

3. If the invoice has been issued and handed to the buyer but goods have not been delivered, services not provided, or if the issued invoice has been given to the buyer but neither party has declared the tax, upon discovering errors, the invoice must be canceled. The buyer and seller prepare a withdrawal document for the incorrect invoice copies. The withdrawal document must indicate the reason for the invoice withdrawal. The seller crosses out sections of the invoice, retains the incorrect invoice, and issues a new invoice as stipulated.

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In cases where issued invoices have errors in the buyer's name or address but accurately record the buyer's tax code, the parties prepare a reconciliation document and do not need to issue an correction invoice.

When is the time for handling of erroneous invoices in Vietnam?

Based on Article 19 of Decree 123/2020/ND-CP, e-invoices with errors are handled as follows:

(1) Cancelling the e-invoice

If the seller discovers an e-invoice with a code from the tax authority that hasn't been sent to the buyer contains errors, the seller notifies the tax authority via Form No. 04/SS-HDDT to cancel the coded e-invoice with errors and issues a new e-invoice, digitally signs it, and sends it to the tax authority for a new invoice code to replace the issued invoice to be sent to the buyer.

(2) Notifying the buyer of invoice errors without re-issuing the invoice

For e-invoices with a code from the tax authority or those without a tax authority code already sent to the buyer but found to contain errors (errors in the name, address of the buyer but not in the tax code, other contents remain correct), the seller notifies the buyer of the errors but does not need to reissue the invoice.

The seller reports the e-invoice errors to the tax authority via Form No. 04/SS-HDDT, except where e-invoices without a tax authority code containing errors above have not had data sent to the tax authority.

(3) Adjusting or issuing a new replacement invoice

For e-invoices with a tax authority code or without a tax authority code already sent to the buyer, if found to contain errors (incorrect tax code; errors in the monetary amounts on the invoice, incorrect tax rate, tax amount, or goods improperly recorded regarding specifications or quality), the seller may choose one of the following two methods for utilizing e-invoices:

- The seller issues an e-correction invoice for the previously issued erroneous invoice.

If the seller and buyer agree to prepare a written agreement prior to issuing the correction invoice for the incorrect invoice, they do so, documenting the error, and the seller then issues the e-correction invoice for the erroneous invoice.

Note: In cases where, by regulation, e-invoices are issued without an invoice form symbol, invoice code, or invoice number having errors, the seller only makes adjustments without canceling or replacing.

- The seller issues a new e-invoice to replace the erroneous e-invoice, unless the seller and buyer agree to prepare a written agreement before issuing the replacement invoice for the erroneous invoice, documenting clear errors, after which the seller issues a replacement e-invoice for the incorrect one.

(4) Seller checks for errors

If the tax authority discovers an e-invoice already issued contains errors, they will inform the seller using Form No. 01/TB-RSDT for the seller to check the errors.