What is an e-tax invoice? What are the principles for using e-tax invoices in Vietnam?

What is an e-tax invoice?

Currently, there is no definition for an e-tax invoice. However, it can be inferred according to Clause 2, Clause 3, Article 3 of Decree 123/2020/ND-CP as follows:

- An e-invoice is an invoice with or without a tax agency code displayed in e-data form, issued by organizations, individuals selling goods, or providing services using e-means to record information on selling goods or providing services in accordance with the laws on accounting and tax, including the case where invoices are generated from a cash register connected to transfer e-data to the tax agency, in which:

+ An e-invoice with a tax agency code is an e-invoice that has a code issued by the tax agency before organizations, individuals selling goods, or providing services send it to the buyer.

The tax agency code on the e-invoice includes a transaction number, which is a unique series of numbers created by the tax agency's system, and a string of characters encoded by the tax agency based on the seller's information recorded on the invoice.

+ An e-invoice without a tax agency code is an e-invoice sent by organizations selling goods or providing services to the buyer without a tax agency code.

- Invoices printed by the tax agency are paper invoices printed by the tax agency to sell to organizations and individuals who are eligible to buy invoices from the tax agency as stipulated in Article 23 of Decree 123/2020/ND-CP to use when selling goods or providing services.

Thus, according to the regulation, it can be inferred that an e-tax invoice is an e-invoice with a code issued by the tax agency before organizations, individuals selling goods, or providing services send it to the buyer.

*Note: The tax agency code on the e-invoice includes a transaction number, a unique series of numbers created by the tax agency's system, and a string of characters encoded by the tax agency based on the seller's information recorded on the invoice.

What is an e-tax invoice? What are the principles for using e-tax invoices in Vietnam? (Image from the Internet)

What are the principles for using e-tax invoices in Vietnam?

Pursuant to Article 90 of the Law on Tax Administration 2019, the principles of preparing, managing, and using e-invoices are specified as follows:

- When selling goods or providing services, the seller must create an e-invoice to give to the buyer in the standard data format and must include all contents as prescribed by tax law and accounting law, regardless of the value for each sale of goods, provision of services.

- If the seller uses a cash register, the seller must register to use an e-invoice generated from a cash register connected to transfer e-data to the tax agency.

- The registration, management, and use of e-invoices in transactions of selling goods and providing services must comply with the laws on e-transactions, accounting, and tax.

- The issuance of a tax agency code on the e-invoice is based on the information of enterprises, economic organizations, other organizations, business households, and business individuals recorded on the invoice.

Enterprises, economic organizations, other organizations, business households, and business individuals are responsible for the accuracy of the information on the invoice.

What is the database on e-tax invoices in Vietnam?

According to Article 93 of the Law on Tax Administration 2019, the provisions on the database of e-invoices are as follows:

- The tax agency is responsible for organizing the construction, management, and development of the database and technical infrastructure of the information system on invoices; performs the tasks of collecting and processing information, managing the invoice database, and ensuring the maintenance, operation, security, and safety of the information system on invoices; and creating the standard format for invoices.

The database on e-invoices is used for tax management tasks and providing e-invoice information to the relevant organizations and individuals.

- Enterprises and economic organizations stipulated in Clause 2, Article 91 of the Law on Tax Administration 2019 using e-invoices without tax agency codes must provide e-invoice data in accordance with the regulations of the Minister of Finance.

- The Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the Ministry of Public Security, the Ministry of Transport, the Ministry of Health, and other relevant agencies are responsible for connecting and sharing necessary information and data in their management fields with the Ministry of Finance to build the e-invoice database.

- When inspecting goods circulating in the market, for cases using e-invoices, the state agency and authorized persons shall access the tax agency's e-portal to look up information about e-invoices for management requirements, without requiring the provision of paper invoices.

Relevant agencies are responsible for using equipment to access and look up e-invoice data.

- The Minister of Finance prescribes the sample and management use of e-seals; regulation of lookup, provision, and use of e-invoice information; and specifies the provision of e-invoice information in case the data cannot be retrieved due to incidents or natural disasters affecting internet access.