Shall business entities be suspended from the use of e-invoices in case of short selling of goods or services in Vietnam?
Shall business entities be suspended from the use of e-invoices in case of short selling of goods or services in Vietnam?
Based on Clause 1, Article 16 of Decree 123/2020/ND-CP, specific regulations on suspension of the use of e-invoices are as follows:
Suspension of the use of e-invoices
- Businesses, economic organizations, other organizations, households, and individual businesses in the following cases cease to use authenticated e-invoice or without tax agency codes:
a) Businesses, economic organizations, other organizations, households, and individual businesses that have had their tax codes annulled;
b) Businesses, economic organizations, other organizations, households, and individual businesses in cases where the tax authorities have verified and notified that they are not operating at the registered address;
c) Businesses, economic organizations, other organizations, households, and individual businesses that have informed the competent state management agencies about business suspension;
d) Businesses, economic organizations, other organizations, households, and individual businesses that have been notified by the tax authorities to cease using e-invoices to enforce tax debt recovery;
đ) Cases of using e-invoices for the purpose of selling smuggled goods, prohibited goods, counterfeit goods, or goods infringing intellectual property rights as detected and notified by competent authorities to the tax agencies;
e) Cases where e-invoices are issued to facilitate the short sale of goods or services to embezzle funds from organizations or individuals as detected and notified by competent authorities to the tax agencies;
g) Cases where business registration agencies or competent state agencies request businesses to suspend business activities in conditional sectors upon discovering non-compliance with legal business conditions.
Based on inspection and examination results, if the tax agency concludes that a business was established to illegally buy, sell, or use e-invoices, or illegally use e-invoices to evade tax, the tax agency shall issue a decision to cease the use of e-invoices; the business will be dealt with according to legal regulations.
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Thus, according to the above regulation, the act of issuing e-invoices that are used for short selling of goods necessitates the cessation of e-invoice use with tax agency codes.
What cases require the suspension of authenticated e-invoice in Vietnam? (Image from the Internet)
What are regulations on the procedure for suspension of the use of e-invoices in Vietnam?
Based on Clause 2, Article 16 of Decree 123/2020/ND-CP, specific regulations on the procedure for suspension of the use of e-invoices are as follows:
The procedure for suspension of the use of e-invoices is as follows:
Step 1: The directly managing tax authority sends a notice to the taxpayer in cases mentioned in Points đ, e, and g of this Article requesting the taxpayer to provide explanations or supplement information and documents related to the use of e-invoices.
Step 2: The taxpayer provides explanations or supplements information and documents within no more than 2 working days from the date the tax authority issues the notice. Taxpayers can provide explanations directly at the tax authority or in writing with supplementary information and documents.
Step 3: The taxpayer continues using the e-invoices or provides additional explanations, specifically:
- If the taxpayer has provided full explanations or supplemented information and documents proving the legal use of e-invoices, the taxpayer continues to use e-invoices.
- If the taxpayer has provided explanations or supplemented information and documents but cannot prove the legal use of e-invoices, the tax authority continues to request the taxpayer to supplement information and documents. The deadline for supplementation is 2 working days from the date the tax authority issues the notice.
- If the taxpayer does not provide explanations or supplement information and documents by the deadline, the tax authority issues a notice requesting the taxpayer to cease the use of authenticated e-invoice or without tax agency codes and takes action according to regulations.
What is the format of an e-invoice in Vietnam?
According to Clause 2, Article 12 of Decree 123/2020/ND-CP, the components of an e-invoice format are regulated as follows:
e-Invoice Format
- The e-invoice format is a technical standard that prescribes the data type and data length of information fields for sending, receiving, storing, and displaying e-invoices. The e-invoice format uses the XML text formatting language (XML is an abbreviation of the English phrase "eXtensible Markup Language" created for the purpose of sharing e-data between information technology systems).
- The e-invoice format comprises two components: the business data component of the e-invoice and the digital signature data component. For e-invoices with tax codes, there is an additional component containing data related to the tax agency code.
- The General Department of Taxation develops and announces the business data component of the e-invoice, the digital signature data component, and provides a tool to display the contents of e-invoices as regulated in this Decree.
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Thus, according to the above regulation, the e-invoice format comprises two components.
