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

1. 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

1. 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).

2. 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.

3. 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.