What are cases of authorizing the third party to issue invoices in Vietnam?

What are cases of authorizing the third party to issue e-invoices in Vietnam?

Based on Clause 1, Article 3 of Circular 78/2021/TT-BTC, the process of authorizing the issuance of e-invoices to a third party is as follows:

Authorization to issue e-invoices

1. Principles of Authorization for Invoice Issuance

a) Enterprises, economic organizations, or other organizations selling goods or providing services are permitted to authorize to a third party that has a related party relationship with the seller, is eligible to use e-invoices, and is not in the category of having ceased using e-invoices according to regulations in Article 16 of Decree 123/2020/ND-CP to issue e-invoices for the sale of goods and services. The related party relationship is determined according to tax management law;

b) The authorization must be documented in writing (contract or agreement) between the authorizing party and the authorized party;

c) The authorization must be reported to the tax authority when registering to use e-invoices;

d) e-invoices issued by the authorized organization can be either with or without tax authority codes, and must display the name, address, and tax identification number of both the authorizing party and the authorized party;

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Entities engaged in selling goods or providing services, which are businesses, economic organizations, or other organizations, have the right to authorize to a third party that has a related party relationship with the seller, is eligible to use e-invoices, and is not within the case of cessation of e-invoice usage according to legal regulations to issue e-invoices for the sale of goods or services.

What are cases of authorizing the third party to issue invoices in Vietnam? (Image from the Internet)

How to report to tax authorities about the authorization to issue e-invoices in Vietnam?

Based on Clause 3, Article 3 of Circular 78/2021/TT-BTC, the authorization to issue e-invoices in tax management must be reported to the tax authorities as follows:

- The authorization is considered a modification of the registration information for e-invoice usage according to provisions in Article 15 of Decree 123/2020/ND-CP. The authorizing party and the authorized party use Form No. 01DKTD/HDDT Download issued along with Decree 123/2020/ND-CP to notify the tax authorities about the authorization to issue e-invoices, including cases where the authorization is terminated prematurely according to the agreement between the parties;

- The authorizing party fills in the information of the authorized party, and the authorized party fills in the information of the authorizing party on Form No. 01DKTD/HDDT Download issued along with Decree 123/2020/ND-CP as follows:

+ For the authorizing party and the authorized party in Part 5 “List of digital certificates used” fill in the complete information of the digital certificates used by both parties;

+ For the authorized party in Column 5, Part 6 “Registration for authorization of invoice issuance” fill in the information for the name, organization authorizing, and tax identification number of the authorizing party.

What are regulations on the form number of e-invoices in Vietnam?

According to Article 4 of Circular 78/2021/TT-BTC, the regulations are as follows:

* The form number of e-invoices is represented by a single natural number, being the numbers 1, 2, 3, 4, 5, 6, to reflect the type of e-invoice as follows:

- Number 1: Reflects the value-added e-invoice type;

- Number 2: Reflects the sales e-invoice type;

- Number 3: Reflects the public property sales e-invoice type;

- Number 4: Reflects the national reserve sales e-invoice type;

- Number 5: Reflects other types of e-invoices such as e-stamps, e-tickets, e-cards, e-receipts, or other e-documents with invoice content as regulated in Decree 123/2020/ND-CP;

- Number 6: Reflects e-documents used and managed like invoices, including e-warehouse release for internal transport and e-warehouse release for consignment to sales agents.

* The e-invoice code is a group of six characters including both letters and numbers that express the e-invoice identification code to reflect information about the type of e-invoice with or without tax authority codes, the year of invoice creation, the type of e-invoice used. These six (6) characters are prescribed as follows:

- The first character is one (01) letter determined as C or K as follows: C indicates an e-invoice with a tax authority code, K indicates an e-invoice without a code;

- The next two characters are two (02) Arabic numerals reflecting the year when the e-invoice is created, determined by the last two digits of the calendar year. For example: if the invoice is created in 2022, it will be noted as 22; if created in 2023, it will be noted as 23;

- The next one character is one (01) letter defined as T, D, L, M, N, B, G, H, representing the type of e-invoice used, specifically:

+ Letter T: Applied to e-invoices registered for use by enterprises, organizations, households, individuals with the tax authority;

+ Letter D: Applied to invoices for public property sales and national reserve sales or special e-invoices not necessarily having some predefined criteria used by registered enterprises and organizations;

+ Letter L: Applied to e-invoices issued on an occurrence basis by the tax authority;

+ Letter M: Applied to e-invoices generated from cash registers;

+ Letter N: Applied to e-internal transport warehouse release notes;

+ Letter B: Applied to e-warehouse release notes for consignment sales to agencies;

+ Letter G: Applied to e-stamps, tickets, cards as value-added invoices;

+ Letter H: Applied to e-stamps, tickets, cards as sales invoices.

- The last two characters are letters predetermined by the seller based on management needs. If the seller uses multiple invoice templates of the same type, they use the last two characters to differentiate between the different templates of the same type. If there is no management need, indicate as YY;

- On the display form, the e-invoice code and the e-invoice form number are shown in the upper right corner of the invoice (or in an easily noticeable position);

- Examples illustrating the characters of e-invoice form number and e-invoice code:

+ “1C22TAA” – is a value-added invoice with a tax authority code created in 2022 and is an e-invoice used by enterprises, organizations registered with the tax authority;

+ “2C22TBB” – is a sales invoice with a tax authority code created in 2022 and is an e-invoice used by enterprises, organizations, individual business households registered with the tax authority;

+ “1C23LBB” – is a value-added invoice with a tax authority code created in 2023 and is an e-invoice issued intentionally by the tax authority;

+ “1K23TYY” – is a type of value-added invoice without a code created in 2023 and is an e-invoice used by enterprises, organizations registered with the tax authority;

+ “1K22DAA” – is a type of value-added invoice without a code created in 2022 and is a special type of e-invoice without certain mandatory details as used by registered enterprises, organizations;

+ “6K22NAB” – is an e-internal transport warehouse release note type without a code created in 2022 registered by the enterprise with the tax authority;

+ “6K22BAB” – is an e-warehouse release note for consignment sales without a code created in 2022 registered by the enterprise with the tax authority.

* The name, address, and tax identification number of the authorized party for the authorized e-invoice.