What does invoice cancellation mean? What is the invoice cancellation report form in Vietnam according to Circular 78 of the Ministry of Finance?
Vietnam: What does invoice cancellation mean?
According to the provisions in Clause 10, Article 3 of Decree 123/2020/ND-CP, cancellation of invoices and documents means:
Definitions
In this Decree, the following terms are defined as follows:
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- Cancellation of invoices and documents means making the invoices and documents have no value for use.
- Destruction of invoices and documents:
a) Destruction of e-invoices and documents is a measure to ensure that e-invoices and e-documents no longer exist on the information system and cannot be accessed or referenced for information contained in the e-invoices and e-documents.
b) Destruction of printed invoices by tax authorities or destruction of self-printed documents involves using methods like burning, cutting, shredding, or other destruction methods to ensure the destroyed invoices and documents cannot be reused or its information/data.
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From the above provisions, it can be understood that invoice cancellation means making the invoice have no value for use.
What is the invoice cancellation report form in Vietnam according to Circular 78 of the Ministry of Finance?
Below is the invoice cancellation report form according to Circular 78/2021/TT-BTC:
| THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness …….o0o……. E-INVOICE CANCELLATION REPORT Based on Decree 123/2020/ND-CP dated October 19, 2020, of the Government of Vietnam regulating invoices and documents. Based on Circular 78/2021/TT-BTC dated September 17, 2021, guiding the implementation of certain provisions of the Law on Tax Administration and Decree 123/2020/ND-CP Today, on day month year 2022, We are comprised of: |
Download the Invoice cancellation report form according to Circular 78 in word file
Note: The invoice cancellation report form according to Circular 78/2021/TT-BTC is for reference purposes only.
How to handle e-Invoices with errors in certain cases in Vietnam?
According to the provisions of Clause 1, Article 7 of Circular 78/2021/TT-BTC, handling e-invoices sent to tax authorities that have errors in certain cases is done as follows:
- In the case where an already issued e-invoice has errors that require reissuance of the tax authority's code, or the e-invoice requires adjustment or substitution as regulated in Article 19 of Decree No. 123/2020/ND-CP, the seller may choose to use Form No. 04/SS-HDĐT in Appendix IA issued with Decree No. 123/2020/ND-CP to notify the adjustment of each erroneous invoice or notify the adjustment for multiple erroneous e-invoices and send the notification according to Form No. 04/SS-HDĐT to the tax authority any time, but no later than the last day of the tax declaration period in which the adjusted e-invoice arises;
- In cases where the seller issues an invoice upon receiving payment in advance or during the provision of services as stipulated in Clause 2, Article 9 of Decree No. 123/2020/ND-CP which later results in the cancellation or termination of service provision, the seller shall cancel the issued e-invoice and notify the tax authority about the cancellation using Form No. 04/SS-HDĐT in Appendix IA issued with Decree No. 123/2020/ND-CP;
- If an e-invoice previously issued with errors is adjusted or replaced as regulated in point b, clause 2, Article 19 of Decree No. 123/2020/ND-CP and subsequent errors are found, the seller will continue to handle it using the method initially applied for error correction;
- According to the notification deadline stated in Form No. 01/TB-RSDT Appendix IB issued with Decree No. 123/2020/ND-CP, the seller is required to notify the tax authority using Form No. 04/SS-HDĐT in Appendix IA issued with Decree No. 123/2020/ND-CP about the review of the issued e-invoice with errors, specifying that the review is based on the tax authority's notification Form No. 01/TB-RSDT (including the notification number and date);
- If the e-invoice issued lacks sample invoice code, invoice code, or invoice number with errors according to the regulations, the seller only makes adjustments without cancellation or replacement;
- Particularly for value-related errors on the invoice: adjustments can be made to increase (positive sign) or decrease (negative sign) corresponding to the actual adjustment.
