The formatting of electronic invoices with tax authority codes includes what additional components?

What additional components does an electronic invoice with a tax authority code have?

Based on Clause 5, Article 12 of Decree 123/2020/ND-CP, regulations on the format of electronic invoices are as follows:

Format of Electronic Invoices

1. The format of an electronic invoice is a technical standard that prescribes the data type, the data length of the information fields to serve the transmission, storage, and display of the electronic invoice. The format of an electronic invoice uses XML (eXtensible Markup Language), which is created to share electronic data between IT systems.

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

3. The General Department of Taxation develops and announces the component containing business data of electronic invoices, the component containing digital signature data, and provides tools for displaying the contents of electronic invoices as prescribed in this Decree.

4. Organizations and enterprises selling goods and providing services, when transferring electronic invoice data to tax authorities directly, must meet the following requirements:

a) Connect with the General Department of Taxation through a dedicated leased channel or MPLS VPN Layer 3, consisting of one primary transmission channel and one backup transmission channel. Each transmission channel must have a minimum bandwidth of 5 Mbps.

b) Use Web Service or Message Queue (MQ) with encryption as the method for connectivity.

c) Use the SOAP protocol to package and transmit data.

5. Electronic invoices must be fully and accurately displayed to ensure no misunderstanding, allowing the purchaser to read it electronically.

The format of an electronic invoice includes two components: a component containing the business data of the electronic invoice and a component containing digital signature data. For electronic invoices with a tax authority code, there is an additional component containing data related to the tax authority code.

Thus, it can be seen that the format of an electronic invoice with a tax authority code has an additional component containing data related to the tax authority code, differing from electronic invoices without a tax authority code.

What additional components does an electronic invoice with a tax authority code have? (Image from the Internet)

Can electronic invoices converted into paper invoices be used for transactions?

Based on Clause 1, Article 7 of Decree 123/2020/ND-CP, regulations on the conversion of electronic invoices and documents into paper invoices and documents are as follows:

Conversion of Electronic Invoices and Documents into Paper Invoices and Documents

1. Legitimate electronic invoices and documents can be converted into paper invoices and documents when there is an emerging economic and financial business requirement, or at the request of tax management agencies, auditing, inspection, investigation agencies, and in accordance with legal regulations on inspection, examination, and investigation.

2. The conversion of electronic invoices and documents into paper invoices and documents must ensure the accuracy between the content of electronic invoices, electronic documents, and paper invoices, paper documents after conversion.

3. Electronic invoices and documents converted into paper invoices and documents are only valid for recording and monitoring according to the provisions of the law on accounting, legal regulations on electronic transactions, and are not valid for transactions, except in cases where the invoice is created from a cash register connected to the tax authority's electronic data transfer as stipulated in this Decree.

Thus, referencing the above regulation, it can be seen that legally converted electronic invoices into paper invoices can be used for transactions in cases where there is an emerging economic and financial business requirement or at the request of tax management agencies, auditing, inspection, investigation agencies, and in accordance with legal regulations on inspection, examination, and investigation.

What is understood as a legitimate electronic invoice?

Based on Clause 7, Article 3 of Decree 123/2020/ND-CP, it is stipulated as follows:

Definitions

In this Decree, the following terms are understood as follows:

1. Invoice is an accounting document made by organizations or individuals selling goods or providing services, recording information on the sale of goods or provision of services. It can be represented in the form of an electronic invoice or an invoice printed by the tax authority.

2. Electronic invoice is an invoice with or without a tax authority code displayed in electronic data form, created by organizations or individuals selling goods or providing services using electronic means to record sales information according to legal regulations on accounting and taxation. This includes cases where invoices are created from cash registers connected to electronic data transfer with tax authorities, wherein:

a) An electronic invoice with a tax authority code is one for which the code is issued by the tax authority before the organization or individual selling the goods or services sends it to the buyer.

The tax authority code on the electronic invoice includes a transaction number, which is a unique number generated by the tax authority system, and a string of characters that the tax authority encodes based on the seller's information on the invoice.

b) An electronic invoice without a tax authority code is one sent to the buyer by the sales organization without the tax authority's code.

3. Invoices printed by the tax authority are paper invoices printed at the request of the tax authority for sale to organizations or individuals eligible to purchase tax authority invoices as specified in Article 23 of this Decree, for use when selling goods or providing services.

4. Voucher is a document used to record information about deductible tax amounts, tax collection amounts, fees, and charges included in the state budget according to the tax management law. Vouchers as specified in this Decree include personal income tax deduction vouchers, receipts for taxes, fees, charges, represented either electronically or in printed form.

5. Electronic documents include types of documents and receipts as per Clause 4 of this Article, represented in electronic data form by organizations or individuals responsible for tax deduction, or by tax collection agencies, fees, charges to the taxpayer through electronic means according to the law on fees, charges, and tax law.

6. Printed, self-printed documents include types of documents and receipts as per Clause 4 of this Article, represented in paper form, either printed by tax authorities, tax collection organizations, fees, charges following a template for use, or self-printed on computing devices, cash registers, or other devices during tax deduction, tax collection, fees, charges according to the law on fees, charges, and tax law.

7. Legitimate invoices and documents are those that are correct and complete in form and content according to this Decree.

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Thus, referencing the above regulation, the concept of a legitimate electronic invoice is one that is correct and complete in form and content as per the provisions of Decree 123/2020/ND-CP.