What are regulations on handling issued invoices purchased from tax authorities of Vietnam?

What are regulations on handling issued invoices purchased from tax authorities of Vietnam?

Based on Article 26 of Decree 123/2020/ND-CP, there are specific regulations on handling issued invoices purchased from tax authorities as follows:

Handling issued invoices purchased from tax authorities in the following cases:

[1] If an invoice has been issued but not delivered to the buyer, and an error is discovered, the seller must cross out all copies and retain the erroneous invoice.

[2] If there is an error in the name or address of the buyer but the tax code is correct, the parties shall prepare an adjustment record, and it is not necessary to issue an adjustment invoice.

[3] If an invoice has been issued and delivered to the buyer but the goods have not been delivered, or the service not provided, or if both parties have not declared tax and an error is found that requires cancellation, the buyer and seller must make a record of revoking the copies of the erroneous invoice. The cancellation record must state the reason for cancellation. The seller must cross out the copies, retain the erroneous invoice, and issue a new invoice as per regulations.

[4] If an invoice has been issued and delivered to the buyer, and goods or services have been delivered or provided, and taxes declared by both parties, but an error is later discovered, the seller must issue an adjustment invoice. The invoice must clearly state adjustments (increase or decrease) regarding the quantity of goods, sales price, VAT rate, and VAT amount for specific invoice numbers and symbols. Based on the adjustment invoice, both parties must adjust purchase and sale revenues, and output and input tax declarations. The adjustment invoice should not show negative numbers.

Note:

If the buyer and seller agree to prepare a record indicating errors before the seller issues an adjustment invoice, both parties should prepare a record noting the errors before the seller issues the adjustment invoice.

What are regulations on handling issued invoices purchased from tax authorities of Vietnam? (Image from the Internet)

What are guidelines on handling erroneous invoices in Vietnam according to Decree 123?

According to Article 19 of Decree 123/2020/ND-CP, specific regulations on handling erroneous invoices are as follows:

- If the seller discovers an e-invoice with a tax authority code that has not been sent to the buyer contains errors, the seller must notify the tax authority using Form No. 04/SS-HDĐT in Appendix IA issued along with the Decree about canceling the erroneous e-invoice with a code and issue a new e-invoice, digitally sign it, and send it to the tax authority for a new code issuance to replace the issued invoice for the buyer. The tax authority will cancel the erroneous coded e-invoice saved in its system.

- If an e-invoice with a tax authority code or one without a code already sent to the buyer has an error and is discovered by either party, it should be handled as follows:

- If there is an error in the name or address of the buyer but not in the tax code, and other contents are correct, the seller informs the buyer of the erroneous invoice and is not required to reissue the invoice. The seller notifies the tax authority about the erroneous e-invoice using Form No. 04/SS-HDĐT in Appendix IA attached to the Decree, except for cases where the e-invoice without a tax authority code has not been sent to the tax authority.

- If there is an error in: the tax code; the amount recorded on the invoice; the tax rate, tax amount; or incorrect specifications and quality of goods listed on the invoice, the seller can choose one of two methods of using e-invoices:

- The seller issues an e-invoice to adjust the erroneous invoice. If both parties agree to prepare a written agreement before adjusting an erroneous invoice, they should prepare a written agreement detailing the error, followed by the seller issuing an electronic adjustment invoice.
- The electronic adjustment invoice for a previously issued erroneous e-invoice must include the line "Adjustment for Invoice Model No... symbol... number... date... month... year."
- The seller issues a new e-invoice in place of the erroneous e-invoice, unless both parties agree to document the error details before issuing a replacement invoice, where the seller and buyer prepare a written record detailing the error before the seller issues the new e-invoice to replace the erroneous invoice.
- The new e-invoice replacing the erroneous one must contain the line "Replacement for Invoice Model No... symbol... number... date... month... year."
- The seller digitally signs the new e-invoice, adjusts or replaces the erroneous one, and then sends it to the buyer (for those without a tax authority code) or submits it to the tax authority for a code issuance for the new invoice to send to the buyer (for authenticated e-invoices).

- For the aviation industry, exchange or return invoices for air transport documents are considered adjustment invoices and do not require the "Adjusted increase/decrease for Invoice Model No... symbol... date... month... year" information. Airlines are allowed to issue their invoices for these exchanges and returns made by agents.

- If the tax authority discovers an e-invoice with a code, or an invoice without a code, contains errors, it will notify the seller using Form No. 01/TB-RSDT in Appendix IB issued with the Decree for the seller to verify the errors.

- Within the notification period stated in Form No. 01/TB-RSDT Appendix IB, the seller must notify the tax authority using Form No. 04/SS-HDĐT in Appendix IA issued with the Decree to verify the erroneous invoice.

- If after the notification period stated in Form No. 01/TB-RSDT Appendix IB the seller still fails to inform the tax authority, it will issue a second notification to the seller using the same form. If after the second notification deadline the seller still fails to inform, the tax authority may consider it a case of e-invoice usage inspection.

- Within one working day, the tax authority will notify the receipt and processing result. Canceled e-invoices are not valid for use, although they should be retained for reference.

Form No. 04/SS-HDĐT.....Download

Form No. 01/TB-RSDT.....Download

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

According to Article 21 of Decree 123/2020/ND-CP, the responsibilities of sellers using authenticated e-invoices are as follows:

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

- Generate e-invoices for goods sold and services provided for submission to the tax authority for code issuance, and be legally responsible for the legality and accuracy of the e-invoices.

- Send authenticated e-invoices to the buyer immediately after receiving them.