Shall a “-” mark or “+“ mark be specified in the erroneous invoices in Vietnam in case of decrease adjustments?
Shall a “-” mark or “+“ mark be specified in the erroneous invoices in Vietnam in case of decrease adjustments?
According to Clause 1, Article 7 of Circular 78/2021/TT-BTC, the scenario for reducing adjustments on invoices is stipulated as follows:
Handling electronic invoices and summaries of electronic invoice data sent to the tax authority when there are errors in certain cases
1. For electronic invoices:
....
c) In the case where an issued electronic invoice has errors and the seller has processed the errors by adjustment or replacement as stipulated at Point b, Clause 2, Article 19 of Decree 123/2020/ND-CP, and subsequently, the invoice is found to continue having errors, the seller will continue to apply the method used initially for error handling in the subsequent processes;
d) Within the notification period stated in Form No. 01/TB-RSĐT of Appendix IB attached to Decree 123/2020/ND-CP, the seller must notify the tax authority using Form No. 04/SS-HDDT in Appendix IA issued along with Decree 123/2020/ND-CP about checking the issued electronic invoice errors, indicating the basis for examination being the Form No. 01/TB-RSĐT notification from the tax authority (including notification number and date);
dd) If, as per the regulations, an electronic invoice is issued without invoice template number, invoice sign, invoice number errors, the seller will only make adjustments rather than cancel or replace it;
e) Specifically regarding errors in the value content on the invoice: increase adjustments (“+“ mark), decrease adjustments (“-” mark) must accurately reflect the adjustment reality.
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Thus, when it is discovered that an electronic invoice has errors and needs a reduction adjustment, the value content on the adjusted invoice will be marked “-” markly in accordance with the actual adjustment.
Shall a “-” mark or “+“ mark be specified in the erroneous invoices in Vietnam in case of decrease adjustments? (Image from the Internet)
When issuing an adjusting invoice due to errors, is it required to submit Form 04/SS-HDDT to the tax authority in Vietnam?
According to Article 19 of Decree 123/2020/ND-CP, the handling of erroneous invoices is regulated as follows:
Handling of erroneous invoices
- If the seller detects that an electronic invoice which has been coded by the tax authority but not yet sent to the buyer has errors, the seller must notify the tax authority using Form No. 04/SS-HDDT in Appendix IA issued with this Decree about the cancellation of the erroneous coded electronic invoice and create a new electronic invoice, digitally sign it and send it to the tax authority for the issuance of a new coded invoice for replacement to send to the buyer. The tax authority will cancel the erroneous coded electronic invoice stored in the tax authority's system.
- If an electronic invoice with a tax authority code or an uncoded electronic invoice that has been sent to the buyer has errors detected by the buyer or seller, the process is as follows:
a) If there are errors in the buyer's name or address but not the tax code, and no other content errors, the seller should inform the buyer of the invoice error without having to re-issue the invoice. The seller must notify the tax authority about the erroneous electronic invoice using Form No. 04/SS-HDDT in Appendix IA issued with this Decree, except when an uncoded electronic invoice with such errors as mentioned above has not been sent to the tax authority.
b) In cases of errors: tax code; amount on the invoice, tax rate, tax amount, or goods listed on the invoice inaccurately, one can choose one of two ways to use electronic invoices as follows:
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Thus, as per the regulations, if a taxpayer issues an adjusting invoice upon discovering errors, they must notify the tax authority using Form No. 04/SS-HDDT.
Shall an already adjusted or replaced invoice issued for an erroneous one be canceled?
According to Article 7 of Circular 78/2021/TT-BTC, handling electronic invoices and summaries of electronic invoice data sent to the tax authority with errors is stipulated as follows:
Handling electronic invoices and summaries of electronic invoice data sent to the tax authority with errors in certain cases
1. For electronic invoices:
...
c) If an issued electronic invoice has errors and the seller has handled them by adjustment or replacement as regulated at Point b, Clause 2, Article 19 of Decree No. 123/2020/ND-CP, then subsequent errors are detected, the seller must continue applying the method initially used for error correction in the subsequent handling;
...
Based on this, and in accordance with Official Dispatch 1647/TCT-CS in 2023 from the General Department of Taxation, the guidance is as follows:
- In the event a company issues an erroneous electronic invoice (termed as invoice F0), and then issues an adjusting or replacement invoice (termed as invoice F1 adjusting/replacing F0) and discovers that F1 is still erroneous:
+ If choosing the adjustment method: The company issues an F2 adjustment invoice for F0 (at this point, F0 has been adjusted by F1).
+ If choosing the replacement method: The company issues an F2 replacement invoice for F1 (at this point, F0 has been replaced by F1).
Thus, in cases where an adjustment or replacement invoice has already been issued for a prior erroneous electronic invoice, should the adjusted or replaced invoice continue to contain errors, it cannot be canceled. Instead, a new adjustment or replacement electronic invoice must be issued for the erroneous adjusted or replaced invoice.
This means that if the adjustment method has been selected, adjustments must continue; if the replacement method was chosen, replacements must continue until the invoice is correct. Canceling an adjusted/replacement invoice to issue a new one or swapping methods from adjustment to replacement is not permitted.
