Shall household businesses paying fixed tax request issuance of e-invoices in Vietnam?

Shall household businesses paying fixed tax request issuance of e-invoices in Vietnam?

Pursuant to Clause 2, Article 6 of Circular 78/2021/TT-BTC, regulations on the application of e-invoices for household businesses and individuals are as follows:

Application of e-invoices in certain other cases

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2. household businesses and individuals using e-invoices include:

a) household businesses and individuals paying tax by the declaration method must use e-invoices;

b) household businesses and individuals paying tax by the fixed-rate method, if required to use invoices, the tax authority issues separate e-invoices separately;

c) household businesses and individuals filing taxes per each occurrence, if required to use invoices, the tax authority issues separate e-invoices separately.

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Thus, household businesses paying fixed tax can request issuance of invoices, and the tax authority will issue separate e-invoices separately.

Shall household businesses paying fixed tax request issuance of e-invoices in Vietnam? (Image from the Internet)

What are procedures for issuance of e-invoices for household businesses paying fixed tax in Vietnam?

Based on Point b, Clause 2, Article 13 of Decree 123/2020/ND-CP regarding the application of e-invoices when selling goods and providing services, the procedure for requesting issuance of e-invoices separately for household businesses paying fixed tax is as follows:

Step 1: household businesses paying fixed tax submit an application for issuance of an e-invoice with the tax authority's code according to Form 06/DN-PSDT, Appendix IA attached to Decree 123/2020/ND-CP to the tax authority.

Download Form 06/DN-PSDT Application for issuance of an e-invoice with the tax authority's code.

Step 2: Access the tax authority's e-invoice system to create the e-invoice.

Step 3: After businesses, organizations, and individuals have fully declared and paid taxes, as per legal regulations regarding VAT, personal income tax, corporate income tax, and other taxes and fees (if any), on the same working day, the tax authority issues the tax authority's code on the e-invoice created by the businesses, organizations, and individuals.

Businesses, economic organizations, other organizations, households, and individuals are responsible for the accuracy of information on the e-invoices per each occurrence with the tax authority's code.

How to determine the tax authority issuing e-invoices separately for household businesses paying fixed tax in Vietnam?

Pursuant to Sub-point c.2, Point c, Clause 2, Article 13 of Decree 123/2020/ND-CP regarding the application of e-invoices when selling goods and providing services, determination of the tax authority issuing e-invoices with the tax authority's code per each occurrence for household businesses paying fixed tax is as follows:

- For households and individuals with a fixed business location: Submit the application for issuance of an e-invoice with the tax authority's code per each occurrence at the Tax Department managing the location where the household or individual conducts business activities.

- For households and individuals without a fixed business location: Submit the application for issuance of an e-invoice with the tax authority's code per each occurrence at the Tax Department where the individual resides or where the household or individual is registered for business.

What is the format of e-invoices in Vietnam?

Pursuant to Article 13 of Decree 123/2020/ND-CP regarding the format of e-invoices as follows:

Format of e-invoices

1. The e-invoice format is a technical standard defining data types and data lengths of information fields used for transmitting, storing, and displaying e-invoices. The e-invoice format uses the XML (eXtensible Markup Language) file format, which is created for the purpose of sharing electronic data between IT systems.

2. The e-invoice format consists of two components: the component containing the e-invoice business data and the component containing the digital signature data. For e-invoices with the tax authority's code, there is an additional component containing data related to the tax authority's code.

3. The General Department of Taxation develops and publishes the component containing the e-invoice business data, the component containing the digital signature data, and provides the tool to display e-invoice contents according to this Decree.

4. Organizations and businesses selling goods or providing services must meet the following requirements when transmitting e-invoice data to the tax authority directly:

a) Connect with the General Department of Taxation through a dedicated line or MPLS VPN Layer 3 channel, consisting of one main transmission and one backup transmission, with each channel having a minimum bandwidth of 5 Mbps.

b) Use Web Services or Message Queue (MQ) with encryption as a connection method.

c) Use the SOAP protocol for data packaging and transmission.

5. The e-invoice must fully and accurately display the contents, ensuring no misleading interpretation so that the buyer can read it by electronic means.

Thus, the format of e-invoices is a technical standard defining data types and data lengths of information fields used for transmitting, storing, and displaying e-invoices.

In addition, the e-invoice format consists of two components: the business data component of the e-invoice and the digital signature data component. For e-invoices with the tax authority's code, there is an additional component containing data related to the tax authority's code.