Shall the discount be recorded on an e-invoice during Black Friday sales in Vietnam?

Shall the discount be recorded on an e-invoice during Black Friday sales when there is a commercial discount in Vietnam?

Based on point đ, clause 6, Article 10 of Decree 123/2020/ND-CP, which regulates the content of invoices and vouchers, it is specified as follows:

Content of the invoice

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6. Name, unit of measure, quantity, unit price of goods and services; the amount excluding value-added tax, value-added tax rate, total value-added tax amount according to each tax rate, total value-added tax amount, total payment amount including value-added tax.

a) Name, unit of measure, quantity, unit price of goods and services

- Goods, services name: Invoices must display the name of goods and services in Vietnamese. In case of sale of goods with various types, the name of goods must be detailed to each type (e.g., Samsung phones, Nokia phones…). In the case of goods that must be registered for use rights or ownership rights, the invoice must show the specific characteristics of the goods required by law, such as chassis number, engine number for cars, motorbikes, or the address, floor area, floor height, and other similar detail.

In cases where foreign letters are needed, they are placed on the right in parentheses ( ) or just below the Vietnamese line with a smaller font size. If goods and services have a transaction code, the invoice must include both the name and code of the goods and services.

- Unit of measure: The seller determines the unit name based on the nature and characteristics of the goods as shown on the invoice according to the measurement units (e.g., tons, quintals, kilograms, grams, etc.). For services, it is not necessary to include a “unit of measure” as it shall be determinedbased on each service provided.

- Quantity of goods, services: The seller records the quantity using Arabic numerals based on the unit of measure mentioned above. For particular goods or services like electricity, water, telecommunications, IT, broadcasting, postal services, banking, securities, insurance sold over a certain period, the specific period must be stated on the invoice.

For services provided on an occurrence basis, a detailed list can be attached to the invoice; this list must be retained with the invoice for inspection and comparison by competent authorities.

Invoices must state “attached to list number…, dated… month… year”. The list must include the seller’s name, tax code, address; name of the goods, quantity, unit price, amount of goods and services sold, date of issue, name and signature of the person making the list. If the seller pays VAT using the deduction method, the list must include “VAT rate” and “VAT amount”. Total payment amount must match the amount stated on the VAT invoice. Goods and services listed according to the sales order of the day. The list must state “attached to invoice number… dated… month… year”.

- Unit price of goods, services: The seller records the unit price according to the above-mentioned unit of measure. If the list is attached, listing sold goods and services with the invoice, it is not necessary to record unit prices on the invoice.

b) Value-added tax rate: The VAT rate on the invoice is the VAT rate applicable to each type of goods and services according to the tax law.

c) The amount excluding VAT, total VAT amount according to each tax rate, total VAT amount, total payment amount already has VAT shown in Vietnamese dong with Arabic numerals unless foreign currency sales not converted into Vietnamese dong are displayed intentionally.

d) The total payment amount on the invoice is shown in Vietnamese dong in Arabic numbers and in Vietnamese words unless foreign currency sales not converted into Vietnamese dong are shown intentionally, and in foreign words.

đ) In case a business applies a trade discount or promotion to customers according to the law, the commercial discount, promotion must be clearly shown on the invoice. The determination of VAT taxable price (amount excluding VAT) in cases of applying trade discounts or promotions is done according to the VAT law.

e) For airline companies using international ticket issuance systems, fees collected on travel documents (e.g., system administration fee, document exchange fee, and other fees) and service charges for airport fees collected on behalf of airline companies (e.g., passenger service fees, security screening fees) are recorded on the invoice as the total VAT included payment amount. Airline companies are allowed to round off to thousands according to International Air Transport Association (IATA) rules.

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Hence, when issuing an e-invoice during Black Friday sales, any commercial discount must be recorded on the invoice as per the regulations.

Shall the discount be recorded on an e-invoice during Black Friday sales when there is a commercial discount in Vietnam? (Image from the Internet)

What principles must be ensured when authorizing the issuance of e-invoices in Vietnam?

Based on clause 1, Article 3 of Circular 78/2021/TT-BTC, regulating the principle of authorizing the issuance of e-invoices in tax management, it is specified as follows:

- Enterprises, economic organizations, or other organizations selling goods or providing services may authorize a third party with a relational link to the seller, who is eligible to use e-invoices and is not subject to cessation of the use of e-invoices according to Article 16 of Decree 123/2020/ND-CP to issue e-invoices for their goods and services activities. The relational link is determined according to the law on tax management;

- Authorization must be established in writing (contract or agreement) between the authorizing party and the authorized party;

- Authorization must be reported to tax authorities when registering for e-invoice use;

- An e-invoice issued by the authorized organization is an e-invoice with or without the tax authority’s code and must display the name, address, tax code of both the authorizing and authorized parties;

- Both the authorizing party and the authorized party have the responsibility to publish information about the authorization on their websites or through mass media to inform buyers of goods and services. When the authorization term ends or terminates earlier as agreed, the parties must cancel such publications and announcements regarding the authorization from their websites or mass media;

- If the authorized invoice is an e-invoice without a tax authority’s code, the authorizing party must send e-invoice data to the directly managing tax authority or through a service provider to transfer the data to the directly managing tax authority;

- The authorized party is responsible for issuing authorized e-invoices according to actual transactions agreed upon with the authorizing party, in compliance with the principles stated in clause 1, Article 3 of Circular 78/2021/TT-BTC.

What are the regulations on the form number of e-invoices in Vietnam?

Based on clause Article 4 of Circular 78/2021/TT-BTC, the regulations are as follows:

* The form number of an e-invoice is a natural number character, which is a natural number 1, 2, 3, 4, 5, 6, indicating the type of e-invoice as follows:

- Number 1: Indicative of value-added tax e-invoice;

- Number 2: Indicative of sales e-invoice;

- Number 3: Indicative of public asset sales e-invoice;

- Number 4: Indicative of national reserve sales e-invoice;

- Number 5: Reflects other e-invoice types like e-stamps, e-tickets, e-cards, e-receipts, or other named e-documents containing the contents of an e-invoice following Decree 123/2020/ND-CP;

- Number 6: Represents e-documents used and managed as invoices, including e-internal transfer slips, e-consignment slips for agent sales.

* The symbol of an e-invoice is a group of 6 characters, including letters and numbers, to indicate the type of e-invoice with a tax authority’s code or not, the issuance year, and the type of e-invoice used. These six (06) characters are specified as follows:

- The first character is a single letter specified as C or K, where 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 issued, determined by the last two numbers of the calendar year. For instance, if issued in 2022, it is shown as 22; if it is in 2023, it is shown as 23;

- One subsequent character is a single letter denoted as T, D, L, M, N, B, G, H, indicating the type of e-invoice used, specifically:

+ Letter T: Applied for e-invoices by enterprises, organizations, households, and individual businesses registered with the tax authority;

+ Letter D: Applied for public assets sales invoices and national reserve sales invoices or specific e-invoices that do not necessarily have some mandatory features used by enterprises and organizations;

+ Letter L: Applied to e-invoices issued once by the tax authority;

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

+ Letter N: Applied for e-internal transfer and delivery slips;

+ Letter B: Applied for e-consignment for agent sales slips;

+ Letter G: Applied for e-stamps, tickets, cards as VAT invoices;

+ Letter H: Applied for e-stamps, tickets, cards as sales invoices.

- The last two characters are letters determined by the seller according to their management needs. If multiple invoice templates are used within the same type, these two characters separate various templates within the same type. If no management need exists, set it as YY;

- In the instance format, the sample and invoice symbols are displayed at the top right of the invoice (or conspicuously positioned);

- Illustrative example of the characters in an e-invoice sample and symbol:

+ “1C22TAA” – represents a VAT invoice with a tax authority code issued in 2022 by an enterprise or organization registered for use with the tax authority;

+ “2C22TBB” – denotes a sales invoice with a tax authority code issued in 2022 by a business, organization, or individual household registered with the tax authority;

+ “1C23LBB” – indicates a VAT invoice with a tax authority code issued in 2023 for invoices provided by the tax authority for each transaction occurrence;

+ “1K23TYY” – signifies a VAT invoice without a code issued in 2023 utilized by businesses or organizations registered with the tax authority;

+ “1K22DAA” – denotes a non-coded specific VAT invoice issued in 2022, used by particular businesses and organizations registered;

+ “6K22NAB” – denotes a non-coded e-internal transfer slip issued in 2022 by a business registered with the tax authority;

+ “6K22BAB” – pertains to a non-coded e-consignment sales agent slip issued in 2022 by a business registered with the tax authority.

* The name, address, tax code of the authorized party for an authorized e-invoice.