What are guidelines for issuing invoices when giving gifts to employees in Vietnam in 2025?

What are guidelines for issuing invoices when giving gifts to employees in Vietnam in 2025?

The guidelines for issuing invoices when giving gifts to employees in 2025 are as follows:

Based on Article 4 of Decree 123/2020/ND-CP which stipulates:

Principles of issuing, managing, and using invoices and records

1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods or services are used for promotion, advertising, samples; goods, services used to give, present, exchange, compensate wages to employees, and internal consumption (except for internally transferred goods to continue the production process); issuing goods under lending, borrowing, or return) and must fully record the content as prescribed in Article 10 of this Decree. In the case of using e-invoices, they must comply with the standard data format of the tax authority as prescribed in Article 12 of this Decree.

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Based on Official Dispatch 63653/CTHN-TTHT of 2020 guiding the issuance of invoices for goods given, presented, or compensated in lieu of wages as follows:

Based on the above provisions, the Hanoi Tax Department has the following opinions:

1. For issues related to invoices and records in the purchase and sale of Vinpoint points, the company is requested to study and follow the guidance in Official Dispatch No. 4631/TCT-CC dated October 10, 2017, of the General Department of Taxation.

If the company incurs purchasing invoices for goods and services for production and business activities subject to VAT, the input VAT is deductible if it meets the requirements in Clause 10, Article 1 of Circular No. 26/2015/TT-BTC.

2. If the company gives gifts to employees, it must issue invoices following the provisions of Article 4 of Decree No. 123/2020/ND-CP of the Government of Vietnam when giving gifts.

3. If the company's employees receive benefits in cash or in kind outside wages or salaries paid by the company, these benefits are subject to personal income tax according to the guidance in Clause 2, Article 2 of Circular No. 111/2013/TT-BTC.

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Simultaneously, based on Clause 3, Article 7 of Circular 219/2013/TT-BTC which stipulates the taxable value as follows:

Taxable Value

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3. For products, goods, services (including those purchased externally or produced by the business itself) used for exchange, giving, presenting, or compensation in lieu of wages, the taxable value is the VAT taxable value of goods and services of the same kind or equivalent at the time these activities occur.

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Gifts of invitation tickets (on the ticket stating no charge) to art performances, fashion shows, beauty and model contests, sports competitions approved by competent state authorities as per the law, the taxable value is determined as zero (0). The performing arts organization shall determine and be responsible for the number of invitations and the list of organizations and individuals to whom the invitations are presented before the performance or competition. If the organization fraudulently charges for the invitations, it will be handled according to the law on tax administration.

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Thus, the guidelines for issuing invoices when giving gifts to employees in 2025 are as follows:

- When giving gifts to employees, the company must issue an invoice. The time of issuing the invoice in this case is when the gift is given to the employee.

- The VAT taxable value of goods, products, services used to give gifts to employees is the VAT taxable value of goods and services of the same kind or equivalent at the time of the gift-giving activity.

What are guidelines for issuing invoices when giving gifts to employees in Vietnam in 2025? (Image from the Internet)

What content must be included when issuing invoices in case of giving gifts to employees in Vietnam?

According to Article 10 of Decree 123/2020/ND-CP, the content of invoices when issuing Tet gift invoices to customers must include the following:

- Invoice name, invoice symbols, invoice form symbols.

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

- Invoice number

- Name, address, tax code of the seller

- Name, address, tax code of the buyer

- Name, unit of measure, quantity, unit price of goods, services; subtotal before VAT, VAT rate, total VAT payable by each tax rate, total VAT amount, total payment including VAT.

- Seller's signature, buyer's signature.

- Time of invoice issuance

- Time of e-invoice digital signing

- Tax authority code for e-invoices

- Fees, charges

- Name, tax code of the organization receiving the invoice printing for invoices printed by the tax authority.

- Letters, numbers, and currency on the invoice

- Other content on e-invoices

Note: Some cases of e-invoices do not necessarily need to have all the above contents as specified in Clause 14, Article 10 of Decree 123/2020/ND-CP

How to handle errors in e-invoices in Vietnam?

Based on Article 7 of Circular 78/2021/TT-BTC regulating how to handle errors in e-invoices as follows:

- In case an issued e-invoice has errors requiring a new tax authority code or the e-invoice with errors needs to be adjusted or replaced as prescribed in Article 19 of Decree 123/2020/ND-CP, the seller can choose to use Form 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP to notify adjustments for each incorrect invoice or to notify adjustments for multiple incorrect e-invoices and send the notification following Form 04/SS-HDDT to the tax authority at any time, but no later than the last day of the VAT declaration period where the adjusted e-invoice arises;

- If the seller issues invoices when receiving prepayments or while providing services as prescribed in Clause 2, Article 9 of Decree 123/2020/ND-CP and then the service provision is canceled or terminated, the seller shall annul the issued e-invoice and notify the tax authority using Form 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP;

- In cases where e-invoices with errors are adjusted or replaced as prescribed in point b, clause 2, Article 19 of Decree 123/2020/ND-CP, and errors are found again, further handling will follow the method applied in the initial error handling;

- According to the notification schedule recorded on Form 01/TB-RSDT, Appendix IB attached to Decree 123/2020/ND-CP, the seller shall notify the tax authority using Form 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP about the review of the issued e-invoice that has errors, clearly stating that the review's basis is the notification Form 01/TB-RSDT from the tax authority (including the notice number and date);

- If, by regulation, the e-invoice issued does not have an invoice form code, invoice symbol, invoice number with errors, the seller is required only to adjust without cancellation or replacement;

- Especially for the value content on the invoice with errors: increase adjustment (indicate positive sign), decrease adjustment (indicate negative sign) accurately reflecting the actual adjustment.