What are VAT invoices, sales invoices, and other types of invoices in Vietnam?

What are VAT invoices, sales invoices, and other types of invoices in Vietnam?

VAT invoices, sales invoices, and other types of invoices are stipulated in Article 8 of Decree 123/2020/ND-CP as follows:

[1] Value Added Tax invoices are used by organizations that declare VAT under the deduction method for activities such as:

- Selling goods and providing services domestically;

- International transport activities;

- Exporting into tax-free zones and other cases considered as exports;

- Exporting goods and providing services overseas.

[2] Sales invoices are used by organizations and individuals:

Organizations and individuals that declare and calculate VAT under the direct method use them for activities such as:

- Selling goods and providing services domestically;

- International transport activities;

- Exporting into tax-free zones and other cases considered as exports;

- Exporting goods and providing services overseas.

Organizations and individuals in tax-free zones, when selling goods and providing services domestically, or when selling and providing services between organizations and individuals within tax-free zones, exporting goods, providing services overseas, must clearly state on the invoice "For organizations and individuals in tax-free zones."

[3] Electronic invoices for selling public assets are used when selling assets like:

- Public assets at agencies, organizations, units (including state-owned housing);- Infrastructure assets;- Public assets assigned to enterprises by the state but not counted as state capital at enterprises;- Assets of projects using state capital;- Assets established as the property of the entire people;- Public assets reclaimed by a decision of the competent authority or individual;- Materials and supplies recovered from handling public assets.

[4] Electronic invoices for selling national reserve goods are used when agencies, units under the national reserve system sell national reserve goods as prescribed by law.

[5] Other types of invoices

- Stamps, tickets, cards with form and content as stipulated in this Decree;

- Receipts for air freight charges; receipts for international transport charges; receipts for banking service charges, except for the case specified in point a of this clause, if the form and content are drafted according to international practices and relevant legal regulations.

What are VAT invoices, sales invoices, and other types of invoices in Vietnam? (Image from Internet)

When is the invoicing time in Vietnam?

Based on Article 9 of Decree 123/2020/ND-CP, specific regulations on the invoicing time are as follows:

[1] The issuance date for selling goods (including state assets, confiscated assets, state treasury contributions, and national reserve goods) is the time of transfer of ownership or right to use the goods to the buyer, regardless of whether payment has been made.

[2] The issuance date for providing services is the completion time of providing the services, regardless of whether payment has been received. If the service provider receives payment in advance or during service delivery, the issuance date is the time of payment (excluding advance payment or deposit to ensure the performance of service contracts such as accounting, auditing, financial consultancy, tax advisory; valuation; technical surveying, design; supervisory consultancy; investment project formulation).

[3] In cases of multiple deliveries or partial deliveries of services, each delivery or handover must have an invoice corresponding to the quantity and value of goods or services delivered.

Additionally, the issuance date for several specific cases is provided in Clause 4, Article 9 of Decree 123/2020/ND-CP.

What are requirements of authenticated e-invoices in Vietnam?

According to Clause 2, Article 17 of Decree 123/2020/ND-CP, authenticated e-invoices must meet the following requirements:

- Must include full electronic invoice content as prescribed in Article 10 of Decree 123/2020/ND-CP.

- Must conform to the electronic invoice format as stipulated in Article 12 of Decree 123/2020/ND-CP.

- Must accurately reflect the registered information as prescribed in Article 15 of Decree 123/2020/ND-CP.

- Should not fall under the cases of cessation of electronic invoice usage with a tax authority code as provided in Clause 1, Article 16 of Decree 123/2020/ND-CP.

What actions are prohibited in invoice issuance in Vietnam?

According to Article 5 of Decree 123/2020/ND-CP, the following actions are prohibited in invoice issuance:

- For tax officials:

+ Creating inconvenience or difficulties for organizations and individuals coming to purchase invoices or documents;

+ Engaging in concealment, collusion with organizations or individuals to use illegal invoices or documents;

+ Accepting bribes during invoice inspections or audits.

- For organizations, individuals selling, providing goods, services, organizations, individuals with related rights and obligations:

+ Engaging in fraudulent actions such as using illegal invoices, illegally using invoices;

+ Obstructing tax officials from performing their official duties, including actions causing harm to health or dignity during invoice inspections or audits;

+ Illegally accessing, altering, or destroying systems related to invoices or documents;

+ Offering bribes or engaging in other actions related to invoices or documents to seek undue benefits.