What are 02 ways to handle authenticated e-invoices and unauthenticated e-invoices containing errors in Vietnam?

What are 02 ways to handle authenticated e-invoices and unauthenticated e-invoices containing errors in Vietnam?

Based on Clause 2, Article 19 of Decree 123/2020/ND-CP, the regulations are as follows:

Handling erroneous invoices

1. In cases where the seller detects an error in an e-invoice that has been coded by the tax authority but has not been sent to the buyer, the seller must notify the tax authority using Form No. 04/SS-HDDT Annex IA issued with this Decree, regarding the cancellation of the erroneous coded e-invoice, and issue a new e-invoice. The seller should digitally sign and send this new invoice to the tax authority to obtain a new invoice code to replace the erroneous one for delivery to the buyer. The tax authority will then cancel the stored erroneous coded e-invoice on its system.

2. For e-invoices coded by the tax authority or those without such a code that have been sent to the buyer, and an error is discovered by either the buyer or seller, the handling is as follows:

a) In case of errors regarding the name or handle of the buyer, but not the tax code, and other content is accurate, the seller must inform the buyer of the invoice error without issuing a new invoice. The seller must notify the tax authority of the erroneous e-invoice using Form No. 04/SS-HDDT Annex IA issued with this Decree, except for cases where the e-invoice without a tax authority code has not been sent to the tax authority.

b) In cases of errors with the tax code, the amount on the invoice, tax rate, tax amount, or product details, two choices are available:

b1) The seller can issue an adjusted e-invoice for the erroneous invoice. If the seller and buyer agree to establish a prior written agreement before issuing an adjusted invoice, they should draft a document detailing the errors, and then the seller issues the adjusted e-invoice for the erroneous one.

The adjusted e-invoice must include the line “Adjustment for Invoice Template No... Symbol... Number... date... month... year.”

b2) The seller can issue a new e-invoice to replace the erroneous one unless the seller and buyer agree on drafting a written agreement prior to issuing a replacement invoice, in which they must detail the errors, and then the seller issues a replacement e-invoice for the erroneous one.

The new e-invoice must include the line “Replaces Invoice Template No... Symbol... Number... date... month... year.”

The seller digitally signs the new adjusted or replacement e-invoice and then sends it to the buyer (for invoices without a tax authority code) or sends it to the tax authority to be coded and then sent to the buyer (for invoices with a tax authority code).

c) For the aviation industry, replacement, refund invoices for transportation documents are considered as adjustment invoices without requiring the information “Increase/Decrease Adjustment for Invoice Template No... Symbol... date... month... year.” Aviation enterprises are allowed to issue their own invoices for replacement, refund of transportation documents issued by agents.

3. If the tax authority discovers an e-invoice with or without a tax authority code with errors, it notifies the seller using Form No. 01/TB-RSDT Annex IB issued with this Decree for the seller to check the error.

According to the notification deadline on Form No. 01/TB-RSDT Annex IB, the seller must notify the tax authority using Form No. 04/SS-HDDT Annex IA issued with this Decree regarding the erroneous e-invoice check.

If the seller fails to notify within the deadline on Form No. 01/TB-RSDT Annex IB, the tax authority will issue a second notification to the seller using Form No. 01/TB-RSDT Annex IB. If no notification is received by the second deadline, the tax authority may consider moving to check the use of e-invoices.

4. Within one working day, the tax authority will notify the receipt and processing results according to Form No. 01/TB-HDSS Annex IB issued with this Decree. Cancelled e-invoices are unusable but must be stored for reference.

Thus, comparing the above regulations, one can choose one of the following two methods:

Method 1. The seller issues an adjusted e-invoice for the invoice with errors. If the seller and the buyer agree on drafting a prior written agreement before issuing the adjusted invoice for the erroneous invoice, they draft a document detailing errors, and then the seller issues the adjusted e-invoice.

Method 2. The seller issues a new e-invoice to replace the erroneous one unless the seller and the buyer agree on drafting a prior written agreement before issuing a replacement invoice for the erroneous invoice, they draft a document detailing errors, and then the seller issues the replacement e-invoice.

For the aviation industry, replacement, refund invoices for transportation documents are considered as adjustment invoices without requiring the line “Increase/Decrease Adjustment for Invoice Template No... Symbol... date... month... year.”

What are 02 ways to handle authenticated e-invoices and unauthenticated e-invoices containing errors in Vietnam? (Image from the Internet)

What are responsibilities of sellers using authenticated e-invoices in Vietnam?

According to Article 21 of Decree 123/2020/ND-CP, sellers using authenticated e-invoices must:

- Manage usernames and passwords of accounts provided by the tax authority.

- Issue e-invoices for the sale of goods, provision of services to send to the tax authority for coding and are responsible before the law for the legality and accuracy of the e-invoices.

- Send e-invoices coded by the tax authority to the buyer immediately upon receipt from the tax authority.

What are 08 prohibited acts in tax administration in Vietnam?

According to Article 6 of the Law on Tax Administration 2019, eight prohibited acts in tax administration include:

- Collusion, connivance, concealment between taxpayers and tax administration officials, tax authorities to transfer pricing, tax evasion.

- Harassment, disturbance to taxpayers.

- Misuse for embezzling or unlawful use of tax money.

- Deliberately not declaring or inaccurately, incompletely, and promptly declaring tax payable amounts.

- Obstructing tax administration officials in performing their duties.

- Using another taxpayer’s tax identification number to violate laws or allowing others to use their own tax identification for illegal purposes.

- Selling goods, providing services without issuing invoices as required by law, using illegal invoices, and illegally using invoices.

- Altering, misusing, unauthorized access, or destruction of taxpayer information systems.