What is an adjustment invoice? What are cases of e-invoice adjustment in Vietnam?

What is an adjustment invoice in Vietnam?

Currently, existing laws do not define what an adjustment invoice is. However, according to the provisions of Article 19 of Decree 123/2020/ND-CP on Handling erroneous invoices as follows:

Handling erroneous invoices

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2. In case an e-invoice with the tax authority's code or an e-invoice without the tax authority's code has been sent to the buyer but the buyer or seller detects an error, the handling is as follows:

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b) In case of errors: tax code; errors in the amount recorded on the invoice, errors in tax rates, tax amounts or the goods listed on the invoice are incorrect in terms of specifications, quality, the following two ways of using e-invoices can be chosen:

b1) The seller issues an e-adjustment invoice for the erroneous invoice. In case the seller and the buyer agree on creating a written agreement before issuing the adjustment invoice for the erroneous invoice, the seller and the buyer create a written agreement specifying the error, and then the seller issues an e-adjustment invoice for the erroneous invoice.

The e-adjustment invoice for the erroneous e-invoice must have the line "Adjustment for Invoice Form Number... Sign... Number... date... month... year".

b2) The seller issues a new e-invoice to replace the erroneous e-invoice except in cases where the seller and the buyer agree on creating a written agreement before issuing the replacement invoice for the erroneous invoice, the seller and the buyer create a written agreement specifying the error, and then the seller issues a replacement e-invoice for the erroneous invoice.

The new e-invoice replacing the erroneous e-invoice must have the line "Replacement for Invoice Form Number... Sign... Number... date... month... year".

The seller signs the new e-adjustment invoice or replacement invoice for the erroneous e-invoice then sends it to the buyer (in cases of using e-invoices without the tax authority's code) or sends it to the tax authority for the tax authority to issue a code for the new e-invoice to send to the buyer (in cases of using e-invoices with the tax authority's code).

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The adjustment invoice can be understood as invoices used to correct erroneous invoices regarding tax codes or amounts recorded on the invoice, errors in tax rates, tax amounts, or goods listed incorrectly in terms of specifications, quality.

What is an adjustment invoice? What are cases of e-invoice adjustment in Vietnam? (Image from Internet)

What are cases of e-invoice adjustment in Vietnam?

Based on Article 19 of Decree 123/2020/ND-CP, erroneous e-invoices are handled in the following ways:

(1) Cancel the e-invoice

If the seller discovers that the e-invoice with the tax authority's code has not yet been sent to the buyer and has errors, the seller must notify the tax authority using Form 04/SS-HDDT about the cancellation of the erroneous e-invoice with the code and issue a new e-invoice, digitally sign it and send it to the tax authority for issuing a new code to replace the erroneous invoice to send to the buyer.

(2) Notify the buyer about the invoice error and there is no need to issue a new invoice

If the e-invoice with the tax authority's code or without the code has been sent to the buyer and the buyer or seller detects errors (errors in the buyer's name, address but not in the tax code, and other contents are correct), the seller must notify the buyer about the invoice error and there is no need to issue a new invoice.

The seller must notify the tax authority about the erroneous e-invoice using Form 04/SS-HDDT, except in cases where the erroneous e-invoice without the tax authority's code has not yet sent the invoice data to the tax authority.

(3) Adjust or issue a new invoice to replace

If the e-invoice with the tax authority's code or without the code has been sent to the buyer and the buyer or seller detects errors (errors in the tax code; errors in the amount recorded on the invoice, errors in tax rates, tax amounts or goods listed incorrectly in terms of specifications, quality), the following two ways of using e-invoices can be chosen:

- The seller issues an e-adjustment invoice for the erroneous invoice.

If the seller and the buyer agree on creating a written agreement before issuing the adjustment invoice for the erroneous invoice, the seller and buyer create a written agreement specifying the error, and then the seller issues an e-adjustment invoice for the erroneous invoice.

Note: In cases where the e-invoice issued does not include an invoice form code, invoice code, or erroneous invoice number, the seller only performs an adjustment and does not perform cancellation or replacement.

- The seller issues a new e-invoice to replace the erroneous e-invoice, except in cases where the seller and the buyer agree on creating a written agreement before issuing the replacement invoice for the erroneous invoice, the seller and buyer create a written agreement specifying the error, and then the seller issues a replacement e-invoice for the erroneous invoice.

(4) The seller checks the error

If the tax authority detects that the issued e-invoice has errors, the authority notifies the seller using Form 01/TB-RSDT for the seller to check the error.

What basic contents are included in an e-invoice in Vietnam?

According to Article 10 of Decree 123/2020/ND-CP and Article 4 of Circular 78/2021/TT-BTC, the contents of an e-invoice include:

- Invoice name, invoice symbol, invoice form code.

- Name of the invoice copy applicable to invoices printed by the tax authority as guided by the Ministry of Finance

- Invoice number

- Name, address, tax code of the seller

- Name, address, tax code of the buyer

- Name, unit of measure, quantity, unit price of goods, services; amount excluding value-added tax, value-added tax rate, total amount of value-added tax according to each tax rate, total value-added tax amount, total payment including value-added tax.

- Seller's signature, buyer's signature

- Time of invoice issuance

- Time of digital signature on the e-invoice

- Tax authority's code for the e-invoice with the tax authority's code

- Fees, charges under the state budget, commercial discounts, promotions (if any) as guided at point e, clause 6 of this article and other related contents (if any)

- Name, tax code of the organization receiving printed invoices for invoices printed by the tax authority.

- The script, digits, and currency displayed on the invoice

- Other contents on the invoice