Shall invoices provided separately be issued when enforcement measure are applied in Vietnam?

Shall invoices provided separately be issued when enforcement measure are applied in Vietnam?

According to Clause 2, Article 13 of Decree 123/2020/ND-CP, authenticated e-invoices provided separately are issued to businesses, economic organizations, households, and individual businesses that are subject to enforcement by the tax authority through the suspension of invoice use.

Simultaneously, under Point d, Clause 4, Article 34 of Decree 126/2020/ND-CP:

Enforcement by suspending the use of invoices

...

d) In cases where the measure of suspending the use of invoices is applied, and the taxpayer has a written request to use invoices to secure funds for worker payrolls and ensure the continuous operation of business activities, the tax authority shall continue to allow the taxpayer to use invoices provided separately, provided that the taxpayer must immediately remit at least 18% of the revenue on the used invoices to the state budget.

Additionally, Official Dispatch 5113/TCT-CS in 2021 and Official Dispatch 37935/CTHN-TTHT in 2023 provide guidance on the use of invoices during enforcement periods as follows:

- In cases where businesses under invoice enforcement provide goods and services to multiple customers, upon requesting invoices provided separately: They are allowed to request multiple invoices at once and must pay the required taxes or 18% of the revenue on the used invoices.

- Businesses paying value-added tax by the deduction method under the enforcement of suspended invoice use can utilize electronic invoices issued provided separately.

Thus, businesses under invoice enforcement can still use authenticated e-invoices provided separately to secure funds for worker payrolls and ensure the continuous operation of business activities.

Shall invoices provided separately be issued when enforcement measure are applied in Vietnam? (Image from the Internet)

What are cases of issuance of authenticated e-invoices provided separately in Vietnam?

According to Point a, Clause 2, Article 13 of Decree 123/2020/ND-CP on issuing authenticated e-invoices provided separately:

Sales Invoices:

Issuance of authenticated e-invoices provided separately applies to sales invoices in the following cases:

- Households and individual businesses as prescribed in Clause 4, Article 91 of the Law on Tax Administration 2019 that do not meet conditions for using authenticated e-invoices but need invoices to provide to customers;

- Organizations not engaged in business activities but generating sales transactions or service provisions;

- Businesses that have dissolved, gone bankrupt, or terminated their tax codes but need invoices for asset liquidation;

- Businesses, economic organizations, households, and individual businesses paying value-added tax by the direct method in the following cases:

+ Cease business operations but have not completed procedures to terminate the tax code and need invoices for asset liquidation to provide to buyers;

+ Temporarily cease business operations and need invoices to fulfill contracts signed before the tax authority's notification of business suspension;

+ Subject to enforcement by the tax authority through the suspension of invoice use.

Value-Added Tax Invoices:

Issuing authenticated e-invoices provided separately applies to value-added tax invoices in the following cases:

- Businesses, economic organizations, and other organizations paying value-added tax by the deduction method in the following cases:

+ Cease business operations but have not completed procedures to terminate the tax code and need invoices for asset liquidation to provide to buyers;

+ Temporarily cease business operations and need invoices to fulfill contracts signed before the tax authority's notification of business suspension;

+ Subject to enforcement by the tax authority through the suspension of invoice use.

- Organizations, state agencies not subject to value-added tax by the deduction method but conducting asset auctions where the winning bid price includes value-added tax publicly disclosed in the auction dossier approved by the competent authority, shall be issued value-added tax invoices to provide to buyers.

What are procedures for issuance of authenticated e-invoices provided separately in Vietnam?

Based on Point b, Clause 2, Article 13 of Decree 123/2020/ND-CP specifying the procedures for requesting authenticated e-invoices provided separately:

- Businesses, economic organizations, other organizations, households, and individual businesses eligible for authenticated e-invoices provided separately shall send a request for authenticated e-invoices according to Form No. 06/DN-PSDT, Appendix IA, accompanying Decree 123/2020/ND-CP to the tax authority and access the electronic invoice system of the tax authority to generate electronic invoices.

- After businesses, organizations, and individuals have declared and fully paid taxes as stipulated by the laws on value-added tax, personal income tax, corporate income tax, and other taxes and fees (if any), the tax authority shall, on the same working day, issue the tax authority’s code on the electronic invoices generated by businesses, organizations, and individuals.

- Businesses, economic organizations, other organizations, households, and individual businesses are responsible for the accuracy of the information on the authenticated e-invoices issued provided separately.