Is it necessary to notify the tax authority about the authorization to issue e-invoices in Vietnam?

Vietnam: Is the regulation on authorization to issue e-invoices included in Circular 78?

Based on Article 1 of Circular 78/2021/TT-BTC regulated as follows:

Scope of Adjustment

This Circular guides some contents about invoices and documents according to the Tax Administration Law dated June 13, 2019, Decree No. 123/2020/ND-CP dated October 19, 2020, of the Government of Vietnam regulating invoices and documents (hereinafter referred to as Decree No. 123/2020/ND-CP) including:

1. Some contents about e-invoices include: authorizing the issuance of e-invoices; form codes, e-invoice codes; conversion to apply e-invoices with codes from the tax authority; applying e-invoices in some other cases; handling erroneous e-invoices, and summary data of e-invoices already submitted to the tax authority; e-invoices with tax authority codes generated from cash registers connected to transmit electronic data to the tax authority; criteria for organizations providing e-invoice services to sign service provision contracts for e-invoices with tax authority codes and services for receiving, transmitting, storing invoice data, and other related services.

2. Some contents about paper invoices include: invoice type names, invoice template codes, invoice codes, inter-invoice names printed by the Tax Department, template codes for stamps, tickets, cards printed by the Tax Department.

3. Use of receipts and documents.

4. Transition handling guidance.

Thus, authorizing the issuance of e-invoices is one of the issues regulated in Circular 78.

Is it necessary to notify the tax authority about the authorization to issue e-invoices in Vietnam? (Image from the Internet)

Is it necessary to notify the tax authority about the authorization to issue e-invoices in Vietnam?

According to Clause 1 Article 3 of Circular 78/2021/TT-BTC, the regulation on authorizing the issuance of e-invoices is as follows:

Authorization to Issue E-Invoices

1. Principles of authorization to issue invoices

a) Sellers of goods or service providers, who are enterprises, economic organizations, or other organizations, have the right to authorize a third party with an affiliated relationship with the seller, who is eligible to use e-invoices and not in the case of suspension of e-invoice use according to Article 16 of Decree No. 123/2020/ND-CP, to issue e-invoices for the sale of goods and services. Affiliated relationships are determined according to tax administrative law;

b) The authorization must be made in writing (contract or agreement) between the authorizing party and the authorized party;

c) The authorization must be notified to the tax authority when registering to use e-invoices;

d) E-invoices issued by authorized organizations are e-invoices with or without tax authority codes and must show the name, address, tax code of the authorizing party, and the name, address, tax code of the authorized party;

dd) The authorizing and authorized parties are responsible for posting on their unit's website or publicly informing through mass media so that buyers of goods and services are aware of the authorization to issue invoices. Upon expiry of the authorization or early termination of the authorization to issue e-invoices as per the agreement between the parties, the authorizing and authorized parties must remove postings or publicly inform about the termination of authorization to issue invoices;

e) If the authorized invoice is an e-invoice without a tax authority code (hereinafter referred to as an e-invoice without a code), the authorizing party must transmit e-invoice data to the directly managing tax authority or through a service provider to transmit e-invoice data to the directly managing tax authority;

g) The authorized party is responsible for issuing the authorized e-invoice accurately according to actual transactions, in agreement with the authorizing party, and in compliance with the principles in this Clause.

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Thus, according to the regulation, when authorizing the issuance of e-invoices, it must be reported to the tax authority when registering to use e-invoices.

What information must be included in the authorized e-invoice in Vietnam?

Based on Clause 2 Article 3 of Circular 78/2021/TT-BTC, the authorization contract or agreement is regulated as follows:

- The authorization contract or agreement must fully express the information about the authorizing and authorized parties (name, address, tax code, digital certificate); information about the authorized e-invoice (invoice type, invoice symbol, invoice template code); the purpose of authorization; the authorization period; the payment method for the authorized invoice (clearly stating the responsibility for payment for goods and services on the authorized invoice);

- The authorizing and authorized parties are responsible for storing the authorization document and presenting it when required by the competent authority.

In addition, notification to the tax authority about the authorization to issue e-invoices is conducted as follows:

- The authorization is identified as a change in registered information for using e-invoices according to Article 15 of Decree 123/2020/ND-CP.

The authorizing and authorized parties use the Download Form No. 01DKTD/HDĐT issued with Decree 123/2020/ND-CP to notify the tax authority about the authorization to issue e-invoices, including cases of early termination of authorization to issue e-invoices as per the agreement between the parties;

- The authorizing party fills in the information of the authorized party, the authorized party fills in the information of the authorizing party in Form No. 01DKTD/HDĐT Download issued along with Decree 123/2020/ND-CP as follows:

+ For the authorizing and authorized parties at Part 5 "List of Used Digital Certificates," fill in the complete information of digital certificates used by both parties;

+ For the authorized party at Column 5 Part 6 "Register for Authorization to Issue Invoices," fill in the information of the name, authorizing organization, and tax code of the authorizing party.

Thus, according to the regulations, the information about the authorized e-invoice will include: invoice type, invoice symbol, and invoice template code.