Shall an enterprise suspend the use of e-invoices when suspending operation in a conditional enterprise line in Vietnam?

Shall an enterprise suspend the use of e-invoices when suspending operation in a conditional enterprise line in Vietnam?

Pursuant to point g, clause 1, Article 16 of Decree 123/2020/ND-CP, regulations on cases of suspension of use of e-invoices are as follows:

Suspension of Using e-Invoices

1. enterprisees, economic organizations, other organizations, households, and individual enterprisees in the following cases must cease using e-invoices with or without tax authority codes:

a) enterprisees, economic organizations, other organizations, households, and individual enterprisees that terminate the validity of their tax identification numbers;

b) enterprisees, economic organizations, other organizations, households, and individual enterprisees which are verified and announced by tax authorities as non-operational at their registered addresses;

c) enterprisees, economic organizations, other organizations, households, and individual enterprisees that notify competent state management agencies of temporary enterprise suspension;

d) enterprisees, economic organizations, other organizations, households, and individual enterprisees that receive notifications from tax authorities regarding the suspension of using e-invoices for tax enforcement purposes;

e) Cases involving the use of e-invoices for selling smuggled goods, prohibited goods, counterfeit goods, or infringing intellectual property rights, discovered and reported to tax authorities by competent agencies;

f) Cases involving the issuance of e-invoices for fictitious sales of goods or services to misappropriate funds from organizations or individuals, discovered and reported to tax authorities by competent agencies;

g) Cases where enterprise registration agencies or competent state agencies require a enterprise to temporarily suspend conditional enterprise activities upon discovering non-compliance with legal enterprise conditions.

Based on the results of inspections or examinations, if tax authorities determine that the enterprise was established for illegal purchasing, selling, or using of e-invoices, or unlawfully using e-invoices to evade taxes, the tax authorities shall issue a decision to cease the use of e-invoices; enterprisees will be sanctioned according to the law.

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Thus, in cases where enterprise registration agencies or competent state agencies require a enterprise to temporarily suspend its conditional enterprise activities upon discovering non-compliance with legal enterprise conditions, the use of e-invoices must be ceased.

Shall an enterprise suspend the use of e-invoices when suspending operation in a conditional enterprise line in Vietnam? (Image from the Internet)

What is the procedure for suspension of use of e-invoices when suspending operation in a conditional enterprise line in Vietnam?

According to clause 2, Article 16, Decree 123/2020/ND-CP, the procedure for suspension of use of e-invoices when suspending operation in a conditional enterprise line is as follows:

- The directly managing tax authority sends a notice to the taxpayer requesting an explanation or additional information and documents related to the use of e-invoices.

- The taxpayer must provide an explanation or additional information and documents within two working days from the date the tax authority issues the notice. Taxpayers can explain directly at the tax authority or provide additional information and documents in writing.

- Taxpayers may continue using e-invoices or provide an additional explanation, specifically:

+ If the taxpayer has provided a satisfactory explanation or supplemented sufficient information and documents proving the legal use of e-invoices, the taxpayer may continue to use e-invoices.

+ If the taxpayer has provided an explanation or supplemented information and documents but fails to prove the legal use of e-invoices, the tax authority will continue to request additional information and documents. The deadline for submission is two working days from the date the tax authority issues the notice.

- If, after the deadline stated in the notice, the taxpayer does not provide an explanation or additional information, the tax authority will issue a notice requesting the taxpayer cease the use of e-invoices with or without a tax authority code and will take action according to the law.

May an enterprise that is suspended from use of e-invoices be authorized to issue e-invoices in Vietnam?

Based on point a, clause 1, Article 3 of Circular 78/2021/TT-BTC, principles for authorizing the issuance of e-invoices are regulated as follows:

Authorizing the Issuance of e-Invoices

1. Principles for Authorization

a) Sellers of goods and service providers being enterprises, economic organizations, and other organizations can authorize a third party, linked to the seller, being eligible for the use of e-invoices and not under the suspension of e-invoices per Article 16 of Decree No. 123/2020/ND-CP, to issue e-invoices for the sale of goods and services. Linked relationships are identified according to the law on tax management;

b) Authorization must be documented in writing (contract or agreement) between the authorizing party and the authorized party;

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

d) e-invoices issued by the authorized organization must contain the name, address, and tax identification number of the authorizing party and the name, address, and tax identification number of the authorized party;

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According to the above regulation, sellers of goods and service providers being enterprises, economic organizations, and other organizations may not authorize the issuance of e-invoices to a third party linked to the seller if that enterprise has ceased the use of e-invoices.