Shall VAT be deductible when issuing multiple invoices in the same day for the same enterprise in Vietnam?

Shall VAT be deductible when issuing multiple invoices in the same day for the same enterprise in Vietnam?

Based on Clause 5, Article 15 of Circular 219/2013/TT-BTC (as amended and supplemented by Clause 10, Article 1 of Circular 26/2015/TT-BTC), the conditions for deductible value-added tax (VAT) input are as follows:

Conditions for Deductible Value-Added Tax Input

1. There must be a legal VAT invoice for purchased goods or services, or a document evidencing payment of VAT upon importation, or a document evidencing payment of VAT on behalf of a foreign party as guided by the Ministry of Finance applicable to foreign organizations without legal status in Vietnam and foreign individuals conducting business or generating income in Vietnam.

2. There must be a non-cash payment document for goods or services purchased (including imported goods) of twenty million dong or more, except in cases where the value of goods, services imported each time is less than twenty million dong, goods and services purchased each time according to invoices are under twenty million dong, VAT included, and in cases where the business entity imports goods as gifts from organizations or individuals abroad.

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5. In cases where goods or services are purchased from a supplier with a value of less than twenty million dong but purchased multiple times on the same day with a total value of twenty million dong or more, VAT shall only be deductible if payment is made via bank. The supplier must have a tax code, directly declare and pay VAT.

In cases where the taxpayer is a business entity with stores as dependent units using the same tax code and invoice form of the business, and on the invoice, there is an item "Store number" to distinguish the stores of the business and each store uses its stamp, each store is considered as an individual supplier.

Thus, issuing multiple invoices in one day for the same enterprise is still VAT deductible. However, note that:

- If the total VAT invoices for the day are under 20 million dong: Payment can be made in cash or by transfer, and VAT is still deductible if all documents are complete.

- If the total VAT invoices for the day exceed 20 million dong: Payment must be made via bank to be VAT deductible and accounted as reasonable expenses.

Shall VAT be deductible when issuing multiple invoices in the same day for the same enterprise in Vietnam?

Vietnam: If the buyer's address is wrong, shall a correction invoice be issued?

According to the provisions of Article 26 of Decree 123/2020/ND-CP, the content is as follows:

Handling of Invoices Purchased from Tax Authorities Issued

1. In cases where an invoice has been issued but not yet delivered to the buyer, if a mistake is detected, the seller crosses out all copies and retains the incorrect invoice.

2. In cases where the invoice issued has mistakes in the name, address of the buyer but has the correct buyer’s tax code, both parties shall make an adjustment record without issuing an adjustment invoice.

3. In cases where an invoice has been issued and delivered to the buyer but goods or services have not been delivered or provided, or if an invoice has been issued and delivered to the buyer, and neither the seller nor the buyer has declared taxes, any detected errors must result in cancellation. The seller and buyer shall make a recovery record of the erroneous invoice. The recovery record must indicate the reason for invoice recovery. The seller crosses out all copies, retains the erroneous invoice, and issues a new invoice as per regulations.

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In cases where the invoice has a mistake in the name or address of the buyer but the correct tax code of the buyer is recorded, both parties shall make an adjustment record and do not need to issue an adjustment invoice.

How many types of invoices are there in Vietnam?

Based on the provisions of Article 8 of Decree 123/2020/ND-CP, the following types of invoices exist:

(1) Value-Added Tax Invoice

Value-added tax invoice is used for organizations declaring VAT under the deduction method for activities such as:

- Sale of goods, provision of services domestically;

- International transportation activities;

- Exports to non-tariff zones and cases deemed as exports;

- Exportation of goods and provision of services abroad.

(2) Sales Invoice

Sales invoice is for organizations and individuals such as:

- Organizations and individuals declaring and calculating VAT by direct method for activities like:

+ Sale of goods, provision of services domestically;

+ International transportation activities;

+ Exports to non-tariff zones and cases deemed as exports;

+ Exportation of goods and provision of services abroad.

- Organizations and individuals in non-tariff zones selling goods or providing services domestically and when selling goods or providing services between organizations and individuals in non-tariff zones among themselves, exporting goods, providing services abroad, on the invoice stating "For organizations, individuals in non-tariff zones."

(3) Electronic Invoice for Selling Public Assets

The electronic invoice for selling public assets is used when selling assets such as:

- Public assets at agencies, organizations, units (including state-owned housing);

- Infrastructure assets;

- Public assets assigned by the state to enterprises for management without being accounted into state capital in enterprises;

- Assets of projects using state capital;

- Assets established under ownership of the entire people;

- Public assets confiscated under decisions by competent authorities;

- Materials, materials reclaimed from handling public assets.

(4) Electronic Invoice for Selling National Reserve Goods

The electronic invoice for selling national reserve goods is used when agencies, units of the state's national reserve system sell national reserve goods as per legal provisions.

(5) Other Types of Invoices, Including:

- Stamps, tickets, cards with form and content regulated in this Decree;

- Receipts for air freight charges; documents for international transport fees; documents for banking service fees except where specified in point a of this clause having forms and content established according to international practices and relevant legal regulations.

(6) Documents Printed, Issued, Used and Managed as:

- Invoices include the internal transfer consignment note;

- Consignment bill for goods sent for sale on consignment.