Is an e-tax invoice required to have a tax authority’s authentication code in Vietnam?

Is an e-tax invoice required to have a tax authority’s authentication code in Vietnam?

Currently, there is no definition for an e-tax invoice. However, it can be referenced based on Clauses 2 and 3, Article 3 of Decree 123/2020/ND-CP as follows:

- An e-invoice is an invoice with or without a tax authority’s authentication code, displayed in e-data format by the organization or individual selling goods or providing services using e-means to record sales information in accordance with accounting laws and tax laws. This includes invoices generated from POS cash registerss with e-data transfer connection to the tax authority, wherein:

+ An authenticated e-invoice is an e-invoice that the tax authority assigns a code to before the organization or individual selling goods or providing services sends it to the buyer.

The tax authority’s authentication code on the e-invoice comprises a transaction number, which is a unique series of numbers generated by the tax authority's system, and a string of characters encrypted by the tax authority based on the seller's information recorded on the invoice.

+ An unauthenticated e-invoice is an e-invoice sent to the buyer without a tax authority’s authentication code by the organization selling goods or providing services.

- Invoices printed by tax authorities are paper invoices printed by the tax authority for sale to organizations and individuals that are eligible to purchase invoices from the tax authority under the provisions of Article 23 of Decree 123/2020/ND-CP for use when selling goods or providing services.

A review of the regulations suggests that an e-tax invoice is an e-invoice that the tax authority assigns a code to before the organization or individual selling goods or providing services sends it to the buyer.

*Note: The tax authority’s authentication code on the e-invoice comprises a transaction number, which is a unique series of numbers generated by the tax authority's system, and a string of characters encrypted by the tax authority based on the seller's information recorded on the invoice.

Thus, an e-invoice or e-tax invoice has two types, one with a tax authority’s authentication code and the other without. Therefore, it is not mandatory for an e-invoice to have a tax authority’s authentication code.

Is an e-tax invoice required to have a tax authority’s authentication code in Vietnam? (Image from Internet)

What are regulations on the use of e-invoices generated from POS cash registers in Vietnam?

According to Article 90 of the Law on Tax Administration 2019, the principles for creating, managing, and using e-invoices are specified as follows:

- When selling goods or providing services, the seller must create an e-invoice to deliver to the buyer in a standard data format and must fully record the contents as prescribed by tax laws and accounting laws, regardless of the value of each sale or service provision.

- In cases where the seller uses a POS cash registers, the seller registers to use e-invoices generated from the POS cash registers with an e-data transfer connection to the tax authority.

- The registration, management, and use of e-invoices in the sale of goods or provision of services must comply with laws on e-transactions, accounting laws, and tax laws.

- The tax authority’s authentication code on the e-invoice is based on the information of enterprises, economic organizations, other organizations, business households, and business individuals created on the invoice.

Enterprises, economic organizations, other organizations, business households, and business individuals are responsible for the accuracy of the information on the invoice.

In cases where the seller uses a POS cash registers, the seller registers to use e-invoices generated from the POS cash registers with an e-data transfer connection to the tax authority.

Thus, it can be seen that if a POS cash registers is available, an e-tax invoice is used by registering to use e-invoices generated from the POS cash registers with an e-data transfer connection to the tax authority.

Can the tax authority use an e-tax invoice to inspect goods circulating in the market in Vietnam?

Based on Article 93 of the Law on Tax Administration 2019, the regulations regarding the database for e-invoices are as follows:

- The tax authorities are responsible for organizing the construction, management, and development of databases, technical infrastructure of the information system on invoices; organizing the collection, processing of information, managing the invoice database, and ensuring maintenance, operation, security, and safety of the information system on invoices; developing standard formats for invoices.

The e-invoice database is utilized for tax management and providing e-invoice information to relevant organizations and individuals.

- Enterprises, economic organizations stipulated in Clause 2, Article 91 of the Law on Tax Administration 2019 using e-invoices without a tax authority’s authentication code shall provide e-invoice data as prescribed by the Minister of Finance.

- The Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the Ministry of Public Security, the Ministry of Transport, the Ministry of Health, and other relevant agencies are responsible for connecting and sharing necessary related information and data in their management fields with the Ministry of Finance to build a database for e-invoices.

- When inspecting goods circulating in the market, for cases using e-invoices, the state authorities and authorized persons can access the e-information portal of the tax authority to search for information on e-invoices to serve management needs, without requiring paper invoices.

Relevant authorities are responsible for using devices to access and search e-invoice data.

- The Minister of Finance stipulates the templates, management, and use of e-stamps; prescribes the search, supply, and use of e-invoice information; provides procedures for supplying e-invoice information in cases where accessing invoice data is not possible due to incidents or natural disasters affecting internet access.

When inspecting goods circulating in the market, for cases using e-invoices, the state authorities and authorized persons can access the e-information portal of the tax authority to search for information on e-invoices to serve management needs, without requiring paper invoices.

Thus, it can be seen that through the use of e-invoices by taxpayers, the tax authority can utilize these e-tax invoices to inspect goods circulating in the market.