Vietnam: Is it mandatory to issue an invoice for each respective delivery or acceptance in case where multiple deliveries are required?

Vietnam: Is it mandatory to issue an invoice for each respective delivery or acceptance in case where multiple deliveries are required?

Based on Clause 3 Article 9 of Decree 123/2020/ND-CP which regulates the issuance of invoices as follows:

Time of invoice issuance

1. The time of invoice issuance for the sale of goods (including the sale of state assets, confiscated assets, added to the state budget, and the sale of national reserves) is the time of transferring ownership or use rights of the goods to the buyer, regardless of whether the payment has been received or not.

2. The time of invoice issuance for service provision is the time of service completion regardless of whether the payment has been received or not. In cases where the service provider collects payment before or during service provision, the time of invoice issuance is the time of payment (excluding cases of advance payment or deposits to secure the performance of service contracts: accounting, auditing, financial consulting, taxation; appraisal; surveying, technical design; project supervision consultancy; and investment project formulation).

3. In the case of multiple deliveries or handovers of each service item and stage, each delivery or handover must have an invoice issued for the corresponding quantity and value of the goods or services delivered.

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Therefore, in the case of multiple deliveries, each delivery or handover must have an invoice issued for the corresponding quantity and value of the goods or services delivered.

Vietnam: Is it mandatory to issue an invoice for each respective delivery or acceptance in case where multiple deliveries are required? (Image from the Internet)

How many types of invoices are there in Vietnam?

According to Article 8 of Decree 123/2020/ND-CP, the types of invoices are regulated as follows:

Types of invoices

The invoices prescribed in this Decree include the following types:

1. Value-added tax invoice is an invoice issued to organizations that declare value-added tax according to the deduction method for the following activities:

a) Sale of goods, provision of services domestically;

b) International transportation activities;

c) Export to non-tariff zones and cases considered as exports;

d) Export of goods, provision of services abroad.

2. Sales invoice is an invoice issued to organizations and individuals as follows:

a) Organizations and individuals declaring and calculating VAT by the direct method for the following activities:

- Sale of goods, provision of services domestically;

- International transportation activities;

- Export to non-tariff zones and cases considered as exports;

- Export of goods, provision of services abroad.

b) Organizations and individuals in non-tariff zones selling goods, providing services domestically and selling goods, providing services among organizations and individuals within non-tariff zones, exporting goods, providing services abroad, the invoice clearly states “For organizations and individuals in non-tariff zones.”

3. e-invoices for selling public assets used when selling the following assets:

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

b) Infrastructure assets;

c) Public assets handed over to enterprises for management which are not considered part of the state-owned capital at enterprises;

d) Assets of projects using state funds;

dd) Assets under public ownership;

e) Public assets recovered by the decision of competent authorities;

g) Materials and supplies recovered from the handling of public assets.

4. e-invoices for selling national reserve goods used when agencies, units under the system of state reserve agencies sell national reserve goods as prescribed by law.

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Thus, currently, there are 4 types of invoices:

- Value-added tax invoice- Sales invoice- e-invoice for selling public assets- e-invoice for selling national reserve goods

In addition to the invoices above, there are other forms of invoices, including:

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

- Airway bills; Freight charge receipts for international transportation; Service fee collection receipts for banking services unless otherwise specified by international practices and related laws.

What are the basic contents of an e-invoice in Vietnam?

Based on Article 10 of Decree 123/2020/ND-CP and Article 4 of Circular 78/2021/TT-BTC, the contents of an e-invoice include:

- Invoice name, invoice symbol, invoice template number symbol.

- The name of the invoice layer applies to invoices printed by the tax authority following the guidance of the Ministry of Finance.

- Invoice number

- Name, address, tax identification number of the seller- Name, address, tax identification number of the buyer

- Name, unit of measure, quantity, unit price of goods or services; amount excluding VAT, VAT rate, total VAT amount for each tax rate, total VAT amount, total payment amount including VAT.

- Signature of the seller, signature of the buyer

- Time of invoice issuance- Time of digital signature on the e-invoice

- Code of the tax authority for e-invoices with a tax authority code

- Fees and charges under the state budget, trade discounts, promotions (if any) as guided at point e clause 6 of this Article and other related contents (if any)

- Name, tax identification number of the organization printing the invoice for invoices printed by the tax authority.

- Writing, figures, and currency on the invoice

- Other contents on the invoice