Vietnam:: Does the sale price of properties recorded on public property sale invoices include value-added tax?
Vietnam: Does the sale price of properties recorded on public property sale invoices include value-added tax?
According to Article 95 of Decree 151/2017/ND-CP, amended by Clause 60, Article 1 of Decree 114/2024/ND-CP, regulating public property sale invoices as follows:
public property Sale Invoice
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- Electronic invoices for selling public properties:
a) The template for electronic invoices for selling public properties shall follow Form No. 08/TSC-HD issued in conjunction with this Decree.
b) Agencies assigned to handle public properties shall issue electronic invoices through electronic invoice service providers (for agencies as value-added tax payers with a tax code) or through the electronic portal of the General Department of Taxation (for agencies not as value-added tax payers with a tax code) as stipulated in the Government of Vietnam's Decree on invoices and vouchers for buyers when selling or transferring public properties specified in Clause 1 of this Article. Agencies assigned to handle public properties shall create invoices for selling properties with the tax authority’s code according to the regulations applicable to non-business organizations but having sales or service provision transactions; and are not required to pay for using electronic invoices.
c) Tax authorities shall issue electronic invoices with the tax authority’s code for selling or transferring public properties on a per-occurrence basis to agencies tasked with handling public properties.
d) The preparation, adjustment, cancellation, and reporting on the management and use of electronic invoices for selling public properties shall be implemented according to the Government of Vietnam's Decree on invoices and vouchers.
đ) The deadline for mandatory transition to using electronic invoices for selling public properties is from January 1, 2025.
3. The sale price of properties recorded on public property sale invoices does not include value-added tax.
According to the above regulation, the sale price of properties recorded on public property sale invoices does not include value-added tax.
Vietnam:: Does the sale price of properties recorded on public property sale invoices include value-added tax? (Image from the Internet)
Is it mandatory to switch to using electronic invoices instead of paper invoices when selling public properties in Vietnam?
According to Article 95 of Decree 151/2017/ND-CP, amended by Clause 60, Article 1 of Decree 114/2024/ND-CP, regulating public property sale invoices as follows:
Public property Sale Invoice
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- Electronic invoices for selling public properties:
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dd) The deadline for mandatory transition to using electronic invoices for selling public properties is from January 1, 2025.
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Thus, according to the above regulation, from January 1, 2025, individuals and organizations are mandated to switch to using electronic invoices for selling public properties instead of paper invoices.
What are procedures for destruction of unused paper public property sale invoices in Vietnam?
Based on section 4 of Official Dispatch 14590/BTC-QLCS 2024 from the Ministry of Finance guiding the registration for using electronic invoices for selling public properties and destroying unused paper property sale invoices as follows:
4. Provincial and municipal Peoples' Committees shall direct the Departments of Finance:
a) To conduct the destruction of unused paper public property sale invoices existing as of December 31, 2024; the deadline for implementation is before January 31, 2025.
b) The destruction of unused paper public property sale invoices shall follow the procedures provided in Article 27 of Decree 123/2020/ND-CP dated October 19, 2020, by the Government of Vietnam on invoices and vouchers.
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Additionally, referencing Article 27 of Decree 123/2020/ND-CP, the destruction of unused paper public property sale invoices is as follows:
(1) Enterprises, economic organizations, households, and individual businesses with invoices not in use must destroy those invoices. The deadline for the destruction of invoices is no later than 30 days from the date of notification to the tax authority. If the tax authority has declared invoices invalid (except in cases due to the enforcement of tax debt collection measures), the entity must destroy the invoices within 10 days from the notification date or upon recovering lost invoices.
- Invoices already issued by accounting units shall be destroyed in accordance with accounting law.
- Unissued invoices that are evidence in legal cases shall not be destroyed but handled according to applicable laws.
(2) The destruction of invoices by enterprises, economic organizations, households, and individual businesses shall proceed as follows:
- Enterprises, economic organizations, households, and individual businesses must prepare an inventory of invoices to be destroyed.
- Enterprises and economic organizations must establish an Invoice Destruction Council. The Invoice Destruction Council must include representatives from the leadership and accounting departments of the organization. Households or individual businesses are not required to establish a council when destroying invoices.
- Members of the Invoice Destruction Council must sign the invoice destruction record and are legally liable for any errors.
- The invoice destruction dossier includes:
+ Decision to establish the Invoice Destruction Council, except for households and individual businesses;
+ Inventory of invoices to be destroyed detailing: Invoice name, template number, invoice sign, quantity of invoices destroyed (from number... to number... or listing each invoice number if the sequence is not continuous);
+ Invoice destruction record;
+ The notification of invoice destruction results must include details: type, sign, quantity of invoices destroyed from number… to number, reason for destruction, date and time of destruction, and destruction method following Form No. 02/HUY-HĐG in Appendix IA issued with Decree 123/2020/ND-CP.
The invoice destruction dossier is retained by the enterprise, economic organization, household, or individual business using invoices. The Notification of Invoice Destruction Results must be made in two copies, one retained and one sent to the direct managing tax authority within no more than 5 days from the invoice destruction date.
(3) Destruction of invoices by tax authorities:
- Tax authorities shall destroy invoices printed by the Tax Department and notified for issuance but not sold or allocated, and no longer in use.
- The General Department of Taxation is responsible for stipulating the process for destroying invoices printed by the Tax Department.
