What are 3 requirements when transmitting e-invoice data to tax authorities directly in Vietnam?

What are 3 requirements when transmitting e-invoice data to tax authorities directly in Vietnam?

Pursuant to Article 12 of Decree 123/2020/ND-CP, stipulations are as follows:

e-invoice Format

1. The e-invoice format is a technical standard that prescribes the data type, data length of information fields to serve the transmission, storage, and display of e-invoices. The e-invoice format is based on XML (eXtensible Markup Language) used to share e-data among IT systems.

2. The e-invoice format consists of two components: the component containing business data from the e-invoice and the component containing digital signature data. For e-invoices issued by the tax authority, there is an additional component containing data related to the code of the tax authority.

3. The General Department of Taxation develops and publishes the components containing business data of e-invoices, digital signature data, and provides tools to display the contents of e-invoices as stipulated in this Decree.

4. Organizations and enterprises selling goods or providing services that directly transmit e-invoice data to tax authorities must meet the following requirements:

a) Connect with the General Department of Taxation through a private leased line or MPLS VPN Layer 3 channel, consisting of one primary transmission channel and one backup channel. Each channel must have a minimum bandwidth of 5 Mbps.

b) Use encrypted Web Service or Message Queue (MQ) as the connection method.

c) Use the SOAP protocol to package and transmit data.

5. e-invoices must display fully and accurately to ensure there is no misleading understanding, allowing the buyer to read them electronically.

Thus, the three requirements when transmitting e-invoice data to tax authorities directly include:

[1] Connect with the General Department of Taxation through a private leased line or MPLS VPN Layer 3 channel, consisting of one primary transmission channel and one backup channel. Each channel must have a minimum bandwidth of 5 Mbps.

[2] Use encrypted Web Service or Message Queue (MQ) as the connection method.

[3] Use the SOAP protocol to package and transmit data.

What are forms of invoice in Vietnam?

According to Article 3 of Decree 123/2020/ND-CP, invoices are defined as follows:

Interpretation of Terms

In this Decree, the following terms are understood as:

1. An invoice is an accounting document prepared by organizations, individuals selling goods, and providing services, recording information about the sale of goods and service provision. Invoices are presented in the form of e-invoices or invoices printed by the tax authority.

...

Therefore, it can be seen that invoices are presented in 2 forms:

[1] e-invoices

[2] Invoices printed by the tax authority

What are forms of invoice in Vietnam? What are 3 requirements when transmitting e-invoice data to tax authorities directly in Vietnam? (Image from the Internet)

Which authority is responsible for publishing the data component of e-invoices issued by the tax authority in Vietnam?

Pursuant to Article 8 of Circular 78/2021/TT-BTC, the regulations on e-invoices are as follows:

e-invoices issued by the tax authority are generated from cash registers connected to transfer e-data to tax authorities

1. e-invoices issued by the tax authority are generated from cash registers connected to transfer e-data to tax authorities in compliance with the principles stipulated in Article 11 of Decree 123/2020/ND-CP.

2. Enterprises, households, and individuals doing business paying tax by declaration with direct supply of goods and services to consumers (shopping malls; supermarkets; retail of consumer goods; dining; restaurants; hotels; retail of pharmaceuticals; entertainment services and other services) may opt for using e-invoices generated from cash registers connected to transfer e-data to tax authorities or e-invoices with a code, or e-invoices without a code.

3. e-invoices issued by the tax authority generated from cash registers connected to transfer e-data to tax authorities contain the following information:

a) Name, address, tax identification number of the seller;

b) Buyer's information if requested (personal identification number or tax identification number);

c) Name of goods, services, unit price, quantity, payment price. If the organization or enterprise pays tax by deduction, it must specify price excluding VAT, VAT rate, VAT amount, total payment amount including VAT;

d) Time of invoice issuance;

đ) Tax authority's code.

4. Solution for coding by tax authority on e-invoices generated from cash registers connected to transfer data to tax authorities: The tax authority's code is automatically issued, follows a character range for each business establishment mentioned in clause 2 of this Article upon registration of using e-invoices issued by the tax authority generated from cash registers connected to transfer e-data to the tax authority and ensures no duplication.

5. Responsibilities of the General Department of Taxation

a) Develop and publish data components of e-invoices issued by the tax authority generated from cash registers connected to transfer data to the tax authority*, method of transmission and reception with the tax authorities as per the stipulation at Article 12 of Decree 123/2020/ND-CP and guide taxpayers to connect and transfer e-invoice data to the tax authorities;*

b) Direct the Tax Departments of provinces and centrally-run cities to base on actual subjects in their locality to cooperate with relevant units to build projects for connecting information from cash registers to manage the sales revenue of retail households, individuals to report to the General Department of Taxation for submission to the Ministry of Finance for approval after consensus with the People's Committees of provinces and cities to organize the implementation;

c) Develop a roadmap to apply e-invoices issued by the tax authority generated from cash registers connected to transfer data to the tax authority as stipulated in this Article;

d) Guide implementation of the use of tax authority codes for participating in prize draws with e-invoices issued by the tax authority generated from cash registers connected to transfer data to the tax authority.

6. Responsibilities of the seller when using e-invoices issued by the tax authority generated from cash registers connected to transfer data to tax authorities:

a) Register to use e-invoices issued by the tax authority generated from cash registers connected to transfer data to tax authorities as per the stipulation at Article 15 of Decree 123/2020/ND-CP;

b) Issue e-invoices issued by the tax authority generated from cash registers as per the stipulation at Article 11 of Decree 123/2020/ND-CP and this Article;

c) Be responsible for using the character range issued by the tax authority upon issuing e-invoices issued by the tax authority generated from cash registers connected to transfer e-data to the tax authority to ensure continuity and uniqueness;

d) Transfer data of e-invoices issued by the tax authority generated from cash registers to the tax authority on the same day through an entity providing data receipt, transmission, and storage services.

Thus, the responsibility for publishing the data component of e-invoices issued by the tax authority lies with the General Department of Taxation.