Vietnam: Shall a correction invoice be issued when the buyer's name is wrong?

Vietnam: Shall a correction invoice be issued when the buyer's name is wrong?

According to Article 26 of Decree 123/2020/ND-CP, the following provisions are contained:

Handling of issued invoices purchased from tax authorities

1. In cases where the invoice has been issued but not yet delivered to the buyer, if errors are detected, the seller strikes through the copies and retains the erroneous invoice number.

2. In cases where the invoice mistakenly records the name or address of the buyer but correctly lists the buyer's tax code, the parties will prepare an adjustment record and are not required to issue an adjustment invoice.

3. In cases where the invoice was issued and delivered to the buyer but goods or services were not provided, or the invoice was issued and delivered to the buyer, and neither the buyer nor the seller has declared tax if an error is detected, it must be canceled. The seller and the buyer will prepare a record to reclaim the copies of the erroneous invoice number. The invoice recall record must state the reason for the recall. The seller strikes through the copies, retains the erroneous invoice number, and issues a new invoice in accordance with regulations.

...

In cases where the invoice mistakenly records the name or address of the buyer but correctly lists the buyer's tax code, the parties prepare an adjustment record and are not required to issue an adjustment invoice.

What are cases of invoice correction in Vietnam?

Based on Article 19 of Decree 123/2020/ND-CP, errors in e-invoices can be handled as follows:

(1) Cancel e-Invoices

If the seller discovers an error in an e-invoice that has been granted a tax code and not yet sent to the buyer, the seller shall notify the tax authority using Form 04/SS-HDĐT about the cancellation of the erroneous coded e-invoice and issue a new e-invoice, digitally sign it, and send it to the tax authority to receive a new invoice code instead of the issued one to send to the buyer.

(2) Notify the Buyer of the Invoice Error without Reissuing the Invoice

In case the e-invoice with a tax code or an e-invoice without a tax code has been sent to the buyer and the buyer or seller discovers errors (errors in the name, or address of the buyer but not in the tax code, other contents are correct), the seller shall notify the buyer of the invoice error and is not required to reissue the invoice.

The seller must notify the tax authority of the erroneous e-invoice using Form 04/SS-HDĐT, except in cases where the e-invoice without a tax code has not yet sent invoice data to the tax authority.

(3) Adjust or Issue a New Invoice as Replacement

In case an e-invoice with a tax code or an e-invoice without a tax code has been sent to the buyer and the buyer or seller discovers errors (error in tax code; errors in the amount recorded on the invoice, errors in tax rate, tax amount, or incorrect specification and quality of goods on the invoice), one can choose between two options using the e-invoice as follows:

- The seller issues an e-correction invoice for the issued erroneous invoice.

If there is an agreement between the seller and the buyer about issuing an agreement document before issuing an adjustment invoice for the erroneous invoice, the seller and the buyer create an agreement document that specifies the errors, and then the seller issues an e-correction invoice for the erroneous invoice.

Note: In cases where an e-invoice is issued without a sample number, invoice symbol, or invoice number with errors as regulated, the seller only performs the adjustment and does not cancel or replace it.

- The seller issues a new e-invoice as a replacement for the erroneous e-invoice, except for cases where the seller and the buyer agree to issue an agreement document before issuing a replacement invoice for the erroneous invoice. The seller and the buyer create an agreement document that specifies the errors, and then the seller issues a new e-invoice as a replacement for the erroneous invoice.

(4) Seller Inspects Errors

If the tax authority discovers an error in the issued e-invoice, this authority will notify the seller using Form 01/TB-RSDT for the seller to check the errors.

What contents are included in 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 content of an e-invoice includes:

- Invoice name, invoice symbol, and invoice sample number.

- Invoice copy name applied to invoices printed by the tax authority as guided by the Ministry of Finance.

- Invoice number

- Name, address, and tax code of the seller

- Name, address, and tax code of the buyer

- Name, unit of measure, quantity, unit price of goods, services; amount excluding value-added tax, value-added tax rate, total value-added tax amount according to each tax rate, total value-added tax amount, total payment amount including value-added tax.

- Seller's signature, buyer's signature

- Time of issuing the invoice

- Time of digital signing on the e-invoice

- Tax authority code for e-invoices with a tax code

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

- Name, tax code of the organization that prints the invoice for invoices printed by the tax authority.

- Script, numbers, and currency displayed on the invoice

- Other contents on the invoice.