What are regulations on abbreviation on e-invoices in Vietnam?

What are regulations on abbreviation on e-invoices in Vietnam?

Based on Clause 5 Article 10 of Decree 123/2020/ND-CP which regulates the content of invoices:

Content of Invoices

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5. Name, address, tax identification number of the buyer

a) In cases where the buyer is a business entity with a tax identification number, the name, address, and tax identification number of the buyer on the invoice must be recorded in accordance with the business registration certificate, the branch operation registration certificate, the household business registration certificate, the taxpayer registration certificate, the tax number notification, the investment registration certificate, or the cooperative registration certificate.

If the buyer's name or address is too lengthy, the seller is allowed to abbreviate certain common nouns on the invoice such as "Phường" to "P"; "Quận" to "Q", "Thành phố" to "TP", "Việt Nam" to "VN" or "Cổ phần" to "CP", "Trách nhiệm Hữu hạn" to "TNHH", "khu công nghiệp" to "KCN", "sản xuất" to "SX", "Chi nhánh" to "CN"… but must ensure the full house number, street name, ward, commune, district, city, precisely identify the name, and address of the business and match with the business registration and taxpayer registration of the enterprise.

b) In cases where the buyer does not have a tax identification number, the invoice does not need to display the buyer's tax identification number. In certain special cases of selling goods, providing services to individual consumers specified in Clause 14 of this Article, the invoice is not required to display the buyer’s name or address. In cases of selling goods, providing services to foreign customers visiting Vietnam, the buyer's address information can be replaced with passport or immigration document information and the nationality of the foreign customer.

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Thus, based on the above regulations, the abbreviations on e-invoices are as follows:

- "Phường" to "P"

- "Quận" to "Q"

- "Thành phố" to "TP"

- "Việt Nam" to "VN"

- "Cổ phần" to "CP"

- "Trách nhiệm Hữu hạn" to "TNHH"

- "khu công nghiệp" to "KCN"

- "sản xuất" to "SX"

- "Chi nhánh" to "CN"

Note the case: If the buyer's name or address is too long, the seller is allowed to abbreviate certain common nouns on the invoice.

When abbreviating, it is necessary to ensure full house number, street name, ward, commune, district, city, accurately determine the name, address of the enterprise, and comply with the business registration and taxpayer registration of the enterprise.

Economic, financial transaction contents on accounting documents cannot be abbreviated, erased, or altered; when writing, use ink pen, numbers, and letters must be written continuously, without interruptions, blanks must be crossed out.

Documents that are erased or altered are not valid for payment and accounting log. In case of incorrect accounting documents, they must be cancelled by crossing the incorrect document (Clause 13 Article 8 of the Accounting Law 2015).

What are regulations on abbreviation on e-invoices in Vietnam? (Image from the Internet)

What are principles of searching, provision and use of e-invoice information in Vietnam?

Based on Article 44 of Decree 123/2020/ND-CP which regulates the principle of searching, provision and use of e-invoice information:

- searching, provision and use of e-invoice information is applied to carry out tax procedures, payment procedures via banks, and other administrative procedures; proving the legality of goods circulating on the market.

- Searching, providing e-invoice information must ensure it is complete, accurate, promptly, and right for the subject.

- The use of provided e-invoice information must ensure the correct purpose, support operational activities according to the functions and tasks of the information user; at the same time, it must ensure conformity with the law on protecting state secrets.

What is an e-invoice in Vietnam?

Based on Clause 2 Article 3 of Decree 123/2020/ND-CP which defines the explained terms as follows:

Explanation of Terms

In this Decree, the terms below are understood as follows:

1. An invoice is an accounting document created by organizations or individuals selling goods, providing services, recording information of selling goods, providing services. The invoice is presented in the form of an e-invoice or an invoice printed by the tax authority.

2. An e-invoice is an invoice with or without a tax authority's code presented in e-data format created by organizations or individuals selling goods, providing services using e-means to record information of selling goods, providing services in accordance with the law on accounting, law on tax, including cases where the invoice is generated from a cash register connected to transfer e-data to the tax authority, in which:

a) An e-invoice with the tax authority's code is an e-invoice that is coded by the tax authority before the organization or individual selling goods, providing services sends to the buyer.

The tax authority's code on an e-invoice includes a transaction number which is a unique number generated by the tax authority's system and a string of characters encrypted by the tax authority based on the seller's information recorded on the invoice.

b) An e-invoice without the tax authority's code is an e-invoice created by the organization selling goods, providing services and sent to the buyer without the tax authority's code.

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Thus, according to the above regulations, an e-invoice is an invoice with or without a tax authority's code presented in e-data format created by organizations or individuals selling goods, providing services using e-means to record information of selling goods, providing services in accordance with the law on accounting, law on tax, including cases where the invoice is generated from a cash register connected to transfer e-data to the tax authority.