What are the rules for development of invoice/record information systems in Vietnam?

What are the rules for development of invoice/record information systems in Vietnam?

Based on Article 41 of Decree 123/2020/ND-CP, the general rules for constructing invoice/record information systems are as follows:

General rules

1. The information system on invoices and records must be constructed and managed uniformly from the central to the local levels; it must comply with information technology standards and technical regulations.

2. The database of invoices and records must ensure prompt service for tax management and other state management tasks; meet the requirements of socio-economic development; ensure safety, security, and national security.

3. Information and data on invoices and records must be collected, updated, maintained, exploited, and used regularly; ensure accuracy, honesty, and objectivity.

4. The construction, management, exploitation, utilization, and updating of the database on invoices and records must ensure accuracy, scientific methods, objectivity, and promptness.

5. The invoice and record database must be constructed and connected, shared electronically to serve management, exploitation, provision, and use of information and data conveniently and effectively.

6. The exploitation and use of information and data on invoices and records must ensure purpose compliance and adhere to legal regulations.

7. The database on invoices and records must be connected and exchanged with the information systems, databases of relevant ministries, central authorities, and local authorities.

The general rules for development of invoice/record information systems are stipulated as follows:

- The information system on invoices and records must be constructed and managed uniformly from the central to the local levels; it must comply with information technology standards and technical regulations.

- The database of invoices and records must ensure prompt service for tax management and other state management tasks; meet the requirements of socio-economic development; ensure safety, security, and national security.

- Information and data on invoices and records must be collected, updated, maintained, exploited, and used regularly; ensure accuracy, honesty, and objectivity.

- The construction, management, exploitation, utilization, and updating of the database on invoices and records must ensure accuracy, scientific methods, objectivity, and promptness.

- The invoice and record database must be constructed and connected, shared electronically to serve management, exploitation, provision, and use of information and data conveniently and effectively.

- The exploitation and use of information and data on invoices and records must ensure purpose compliance and adhere to legal regulations.

- The database on invoices and records must be connected and exchanged with the information systems, databases of relevant ministries, central authorities, and local authorities.

What are the rules for development of invoice/record information systems in Vietnam? (Image from the Internet)

What are the rules for issuing, managing, and using invoices and records in Vietnam?

The rules for issuing, managing, and using records are stipulated in Article 4 of Decree 123/2020/ND-CP as follows:

(1) When selling goods or providing services, the seller must issue an invoice to give to the buyer (including cases where goods or services are used for promotional purposes, advertising, samples; goods or services are given, donated, exchanged, paid in lieu of salary to employees, and for internal consumption, except for internally-circulated goods to continue the production process);

- Issuing goods under forms such as lending, borrowing, or returning goods and must record full content as prescribed in Article 10 of this Decree. In the case of electronic invoices, the data format of the tax authority must be followed as provided in Article 12 of this Decree.

(2) When withholding personal income tax, when collecting taxes, fees, charges, the entity withholding tax, fee, charge, or the tax collection organization must issue tax deduction records, tax receipts, fee, and charge receipts to the taxpayer and must record all content stipulated in Article 32 of this Decree.

- In the case of electronic receipts, the data format standard of the tax authority must be followed. In the case of individuals authorizing tax finalization, no personal income tax withholding record will be issued.

- For individuals without labor contracts or with labor contracts under three months, the organization or individual paying income can choose to issue a tax deduction record for each tax deduction or one record for multiple deductions in one tax period.

For individuals with labor contracts of three months or more, the organization or individual paying income only issues one tax deduction record per tax period.

(3) Before using invoices, receipts enterprises, economic organizations, other organizations, households, individuals engaged in business, tax, fee, charge collection organization must register for use with the tax authority or follow the issuance notification as stipulated in Articles 15, 34, and Clause 1 Article 36 of this Decree.

- For invoices and receipts printed by the tax authority, the tax authority must issue notifications for use according to Clause 3 Article 24 and Clause 2 Article 36 of this Decree.

(4) In the usage process, organizations, households, individuals engaged in business must report on the usage situation of invoices purchased from the tax authority and report on the usage of self-printed or purchased receipts as stipulated in Articles 29, 38 of this Decree.

(5) The registration, management, and use of electronic invoices and records must comply with legal provisions on electronic transactions, accounting, tax, tax management, and regulations in this Decree.

(6) Invoice and record data when selling goods or providing services and transaction data when paying tax, deducting tax, and paying taxes, fees, charges serve as a database for tax management and providing invoice, record information to relevant organizations, individuals.

(7) The seller of goods or service provider, being an enterprise, economic organization, or other organization is authorized to delegate a third party to issue electronic invoices for sales of goods or services.

- The invoice authorized to a third party must still display the name of the selling unit as the principal. Authorization must be recorded in writing between the principal and agent, fully expressing information regarding the authorized invoice (purpose of authorization; duration of authorization; payment method for authorized invoices) and must notify the tax authority upon registering for the use of electronic invoices.

- In the case of an authorized invoice being an electronic invoice without the tax authority's code, the principal must transfer electronic invoice data to the tax authority via a service provider. The Ministry of Finance provides specific guidance on this content.

(8) The entity that charges fees and charges can delegate a third party to issue receipt papers for fee or charge. The receipt delegated to a third party must still list the name of the fee or charge collector as the principal.

- Authorization must be recorded in writing between the principal and agent, fully expressing information regarding the delegated receipt (purpose of authorization; duration of authorization; payment method for delegated receipt) and must notify the tax authority when notifying the issuance of the receipt.

What are regulations on unit, quantity, and unit price of goods and services on invoices in Vietnam?

According to point a, clause 6, Article 10 of Decree 123/2020/ND-CP, the content on unit, quantity, and unit price of Goods and Services on invoices is regulated as follows:

- Units of Measure: The seller determines the unit of measure based on the nature and characteristics of the goods reflected on the invoice, using measurement units (e.g., ton, quintal, kilogram, gram, milligram, measure, piece, set, box, can, crate, bag, package, tube, m³, m², m...). For services, the invoice does not necessarily require the "unit of measurement" designation; units are identified for each provision of service and service content provided.

- Quantity of goods, services: The seller records quantity in Arabic numerals based on the unit of measure mentioned. For specific goods and services such as electricity, water, telecommunications services, information technology services, television services, postal and delivery services, banking, securities, and insurance sold on a periodic basis, the invoice must clearly state the supply period of goods, services.

For services issued according to the arising period, a statement can be used to list types of goods, services sold alongside the invoice; the statement must be stored with the invoice to serve for checks, reconciliations by the competent authorities.

The invoice must specify "accompanied by statement number…, dated day… month… year…". The statement must include the name, tax code, address of the seller, name of goods, services, quantity, unit price, total money of goods, services sold, date of issuance, name, and signature of the person preparing the statement.

In case the seller pays value-added tax by the deduction method, the statement must include the "value-added tax rate" and "value-added tax amount." The total amount paid must match the figure recorded on the value-added tax invoice. Goods, services sold are noted in the statement in the order of sales during the day. The statement must indicate "accompanied by invoice number dated day… month... year…".

- Unit Price of Goods, Services: The seller records the unit price of goods, services according to the measurement unit mentioned. In cases where a statement is used to list the goods, services sold with the invoice, it is unnecessary to have a unit price on the invoice.