Shall invoices be issued for internal use goods in Vietnam? What is the form number of e-invoice 1C23LBB in Vietnam?

Shall invoices be issued for internal use goods in Vietnam?

Based on Clause 1, Article 4 of Decree 123/2020/ND-CP stipulating the principles of issuance, management and use of invoices and records as follows:

Principles of issuance, management and use of invoices, and records

1. When selling goods or providing services, the seller must issue invoices to give to the buyer (including instances where goods and services are used as promotions, advertisements, samples; goods and services are given, presented, exchanged, or used as payment instead of wages to workers, and internal consumption (except for internally transferred goods to continue the production process); goods are issued under forms such as lending, borrowing, or returning goods) and must fully record content as stipulated in Article 10 of this Decree. If e-invoices are used, they must adhere to the data standard format set by the tax authority as stipulated in Article 12 of this Decree.

2. When deducting personal income tax, collecting taxes, fees, charges, tax deducting organizations, fee/charge collecting organizations, and tax collecting organizations must issue tax deduction records, tax collection receipts, and charge/fee receipts to give to individuals whose income is tax-deducted, taxpayers, fee/charge payers, and must fully record content as stipulated in Article 32 of this Decree. When electronic receipts are used, they must conform to the standard data format of the tax authority. If an individual authorizes tax finalization, a personal income tax deduction certificate will not be issued.

For individuals without a labor contract or with a labor contract under 3 months, the income-paying organization/individual can choose to issue a tax deduction certificate for each tax deduction or issue one tax certificate for multiple tax deductions in one tax period. For individuals with a labor contract of 3 months or more, the income-paying organization/individual issues only one tax deduction certificate per tax period to them.

3. Before using invoices, receipts, enterprises, economic organizations, other organizations, households, individuals engaged in business, and organizations collecting taxes, fees, charges must register with the tax authority or issue a release notification as stipulated in Articles 15, 34, and Clause 1, Article 36 of this Decree. For invoices and receipts printed by the tax authority, the tax authority issues a release notification as per Clause 3, Article 24, and Clause 2, Article 36 of this Decree.

4. Organizations, households, individuals engaged in business during the usage process must report the usage of invoices purchased from the tax authority, report the usage of self-printed or purchased receipts from the tax authority as stipulated in Articles 29, 38 of this Decree.

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Therefore, according to the above regulations, internal use goods, in principle, still require invoicing except in only one case, which is internal transfer goods for continuing the production process, which do not require invoice issuance.

Shall invoices be issued for internal use goods in Vietnam? (Image from the Internet)

What is the form number of e-invoice 1C23LBB in Vietnam?

Pursuant to Article 4 of Circular 78/2021/TT-BTC which specifies as follows:

* The symbol representing the type of e-invoice is a natural number character, which are natural numbers 1, 2, 3, 4, 5, 6 reflecting the type of e-invoices as follows:

- Number 1: Reflects the type of value-added e-invoice;

- Number 2: Reflects the type of goods sales e-invoice;

- Number 3: Reflects the type of public asset sale e-invoice;

- Number 4: Reflects the type of sales e-invoice for national reserve stock;

- Number 5: Reflects other types of e-invoices such as electronic stamps, electronic tickets, electronic cards, electronic receipts or other named electronic vouchers with the content defined as e-invoices per Decree 123/2020/ND-CP;

- Number 6: Reflects electronic vouchers used and managed as invoices including warehouse releases with internal transfer noted electronically, warehouse release for goods consigned for sale via a representative agency.

* The symbol for e-invoices consists of 6 characters including both letters and numbers reflecting information about the type of e-invoice with a tax authority’s code or without, year of invoice creation, type of e-invoice used. Six (06) characters are specified as follows:

- The first character is one (01) letter defined as C or K: C indicates an e-invoice with a tax authority's code, K indicates an e-invoice without a code;

- The next two characters are two (02) Arabic numerals indicating the year the e-invoice is made, identified by the last two digits of the calendar year. For example, if the e-invoice is created in 2022, it will depict 22; and if in 2023, it will depict 23;

- The subsequent character is one (01) letter defined as T, D, L, M, N, B, G, or H indicating the type of e-invoice utilized, specifically:

+ Letter T: Applied to e-invoices registered with tax authorities by enterprises, organizations, households, and individuals doing business;

+ Letter D: Applied to invoices for public asset sale and national reserve stock sales or special e-invoices that do not necessarily need specific items as registered by enterprises and organizations;

+ Letter L: Applied to e-invoices issued by tax authorities for each arising transaction;

+ Letter M: Applied to e-invoices generated from cash registers;

+ Letter N: Applied to electronic release slips for internal transfer goods;

+ Letter B: Applied to electronic release slips for goods consigned to agents;

+ Letter G: Applied to electronic stamps, tickets, cards as value-added invoices;

+ Letter H: Applied to electronic stamps, tickets, cards as sales invoices.

- The final two characters are letters determined by the seller based on management needs. If the seller uses multiple e-invoice templates in the same type of invoice, it uses these two final characters to distinguish different invoice templates within the same category. In case of no management need, it defaults to YY;

- On the document, the symbols of the e-invoice and the sample number symbol of the e-invoice are displayed on the top right of the invoice (or in an easily recognizable location);

- Example of symbols for e-invoice templates and e-invoices:

+ “1C22TAA” – is a value-added invoice with a tax authority code made in 2022, utilized by enterprises, organizations registered with tax authorities;

+ “2C22TBB” – is a sales invoice with a tax authority code made in 2022, used by enterprises, organizations, and individual business households registered with tax authorities;

+ “1C23LBB” – is a value-added invoice with a tax authority code made in 2023 and is an e-invoice issued for each arising transaction by the tax authority;

+ “1K23TYY” – is a value-added type invoice without a code created in 2023 and issued by enterprises, organizations registered with tax authorities;

+ “1K22DAA” – is a value-added type invoice without a code made in 2022 and is a special e-invoice without necessary mandatory indicators registered by enterprises, organizations;

+ “6K22NAB” – is an electronic release slip with internal transport not using a code made in 2022 registered by the enterprise with the tax authority;

+ “6K22BAB” – is an electronic release slip for goods consigned to agents not using a code made in 2022 registered by the enterprise with the tax authority.

* The name, address, tax code of the assignee for mandated e-invoices.

Therefore, the form number of the e-invoice 1C23LBB is a value-added invoice with a tax authority code made in 2023 and is an e-invoice issued once per arising transaction by the tax authority.

Vietnam: What information does e-invoices include?

Based on Clause 2, Article 3 of Circular 78/2021/TT-BTC, the mandate contract or agreement is specified as follows:

- The mandate contract or agreement must fully reflect information about the assignee and assignor (name, address, tax number, digital certificates); information about the mandated e-invoice (type, invoice symbol, sample number symbol); purpose of mandate; duration of mandate; payment method for the mandated invoice (clearly stating the responsibility for paying goods, service money on the mandated invoice);

- Both the assignor and the assignee are responsible for preserving the mandate document and presenting it upon request by the competent authority.

Moreover, notifying the tax authority about the mandate to issue e-invoices will be executed as follows:

- The mandate is identified as a change in the registration information for using e-invoices as prescribed in Article 15 of Decree 123/2020/ND-CP.

The assignor and the assignee use Download Form No. 01DKTD/HDĐT issued with Decree 123/2020/ND-CP to notify the tax authority of the mandate for issuing e-invoices, including premature termination of the mandate according to the agreement between parties;

- The assignor fills in the information of the assignee, and the assignee fills in the information of the assignor on Form No. 01DKTD/HDĐT Download issued with Decree 123/2020/ND-CP as follows:

+ For both assignee and assignor in Part 5 "List of Digital Certificates Used," fully fill the digital certificate information used by both;

+ For the assignee in column 5 Part 6 "Register Mandate for Invoice Issuance," fill in the name, organization mandating, and tax code of the assignor.

Thus, according to the regulation, information about the mandated e-invoice will include: invoice type, invoice symbol, sample number symbol.