Vietnam: Is an correction invoice required when the buyer's address is wrong?

Vietnam: Is a correction invoice required when the buyer's address is wrong?

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

Handling of issued invoices purchased from tax authorities

1. In case the invoice has been issued but not yet delivered to the buyer, if errors are detected, the seller shall cross out all copies and keep the erroneous invoice number.

2. In case the issued invoice has errors in the buyer's name or address but the buyer’s tax code is correct, the parties shall compile a correction record and are not required to issue a correction invoice.

3. In case the invoice has been issued and delivered to the buyer but goods have not yet been delivered, or services have not yet been provided, or the issued invoice has been delivered to the buyer and neither seller nor buyer has declared tax, if errors are detected, they must be canceled. The seller and the buyer shall compile a record to retrieve all copies of the erroneous invoice number. The retrieval record must indicate the reason for retrieving the invoice. The seller crosses out all copies, retains the incorrect invoice, and issues a new invoice in accordance with regulations.

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In cases where the issued invoice has errors in the buyer's name or address but the buyer's tax code is correct, the parties shall compile a correction record and are not required to issue a correction invoice.

Vietnam: Is a correction invoice required when the buyer's address is wrong? (Image from Internet)

How many types of invoices are currently in use in Vietnam?

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

(1) Value Added Tax Invoice

Value Added Tax invoices are for organizations declaring VAT by the credit method for activities such as:

- Selling goods, providing services domestically;

- International transportation activities;

- Exporting to non-tariff areas and cases considered as exports;

- Exporting goods and providing services abroad.

(2) Sales Invoice

Sales invoices are for organizations and individuals involved in:

- Organizations and individuals declaring and calculating VAT by the direct method for activities such as:

+ Selling goods, providing services domestically;

+ International transportation activities;

+ Exporting to non-tariff areas and cases considered as exports;

+ Exporting goods and providing services abroad.

- Organizations and individuals within non-tariff areas when selling goods, providing services domestically and when selling goods and providing services between organizations and individuals within non-tariff areas, exporting goods and providing services abroad. On the invoice, it must clearly state "For organizations and individuals within non-tariff areas."

(3) e-Invoice for Selling Public Assets

e-invoices for selling public assets are 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 but not calculated as capital under the state's ownership at the enterprise;

- Assets of projects using state funds;

- Assets established under ownership rights of the people;

- Public assets confiscated by decision of a competent authority;

- Materials recovered from handling public assets.

(4) e-Invoices for Selling National Reserve Goods

e-invoices for selling national reserve goods are used when agencies and units under the national reserve system sell national reserve goods as regulated by law.

(5) Other Types of Invoices, including:

- Stamps, tickets, cards with forms and contents regulated in this Decree;

- Air freight charge receipts; international transport service receipts; bank service fee receipts excluding those stipulated at point a of this clause, with forms and contents governed by international practices and relevant laws.

(6) Documents printed, issued, used, and managed as invoices include:

- Invoices including goods release slips cum internal transport

- Goods release slips for dealer sales.

When are authenticated e-invoices issued separately in Vietnam?

According to point a, clause 2, Article 13 of Decree 123/2020/ND-CP, the issuance of authenticated e-invoices separately is regulated as follows:

For Sales Invoices:

Issuing authenticated e-invoices separately involves sales invoices in cases such as:

- Households, individuals not meeting the conditions for mandatory use of authenticated e-invoices but requiring invoices for customers;

- Organizations without business operations but engaging in transactions involving sales of goods or services;

- Enterprises after dissolution, bankruptcy, or cessation of tax code effectiveness that need to liquidate assets and require invoices for buyers;

- Enterprises, economic organizations, households, and individuals subjected to VAT payment by direct calculation who fall into the following categories:

+ Ceased business operations but have not completed procedures to terminate tax code effectiveness with asset liquidation needing invoices for buyers;

+ Temporarily ceased business operations in need of invoices to fulfill contracts signed before the tax authority’s business suspension notice;

+ Subject to tax authority coercion by means of invoice usage suspension.

For Value Added Tax Invoices:

Issuing authenticated e-invoices separately involves VAT invoices in cases such as:

- Enterprises, economic organizations, and other organizations paying VAT by the deduction method encountering:

+ Ceased business operations without completing procedures to terminate tax code effectiveness needing asset liquidation invoices for buyers;

+ Temporarily ceased business requiring invoices for fulfilling contracts signed before the tax authority’s business suspension notification;

+ Coerced by tax authorities by means of invoice usage suspension.

- State organizations that are not subject to VAT payment by the deduction method but conduct asset auctions, where the auction price includes VAT and is clearly stated in the auction documentation approved by competent authorities, thus are issued VAT invoices for buyers.