What is an unauthenticated e-invoice in Vietnam?

What is an unauthenticated e-invoice in Vietnam?

Currently, there is no definition of an e-tax invoice. However, one can refer to Clauses 2 and 3, Article 3 of Decree 123/2020/ND-CP as follows:

- An e-invoice is an invoice with or without a tax authority’s authentication code, presented in e-data format, created by an organization or individual selling goods and providing services using e-means to record information on the sale of goods and the provision of services in accordance with accounting laws and tax laws. This includes invoices generated from cash registers with e-data transfer connection to the tax authority, wherein:

+ An authenticated e-invoice is an e-invoice that the tax authority assigns a code to before the organization or individual selling goods or providing services sends it to the buyer.

The tax authority's code on the e-invoice includes a transaction number, a unique sequence of numbers generated by the tax authority's system, and a string of characters encoded by the tax authority based on the seller's information on the invoice.

+ An unauthenticated e-invoice is an e-invoice sent by the organization selling goods or providing services to the buyer without the tax authority's code.

- An invoice printed by the tax authority is a paper-form invoice printed by the tax authority for sale to organizations and individuals eligible to purchase invoices from the tax authority under the provisions of Article 23 of Decree 123/2020/ND-CP for use when selling goods and providing services.

Through these provisions, it can be inferred that an e-tax invoice is an e-invoice that the tax authority assigns a code to before the organization or individual selling goods or providing services sends it to the buyer.

Note: The tax authority's code on the e-invoice includes a transaction number, a unique sequence of numbers generated by the tax authority’s system, and a string of characters encoded by the tax authority based on the seller's information on the invoice.

Thus, e-invoices or e-tax invoices will have two types: with a tax authority’s authentication code and without a tax authority’s authentication code.

Therefore, it can be understood that an unauthenticated e-invoice is an invoice form sent by the organization selling goods or providing services to the buyer without the tax authority's code.

What is an unauthenticated e-invoice in Vietnam? (Image from the Internet)

What are procedures for issuance of tax authority’s authentication code by tax authorities in Vietnam?

According to Article 90 of the Law on Tax administration 2019, the principles of creating, managing, and using e-invoices are specifically regulated as follows:

- When selling goods or providing services, the seller must create an e-invoice to deliver to the buyer in the standard data format and must complete the content as required by tax laws and accounting laws, regardless of the value of each sale or service provision.

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

- The registration, administration, and use of e-invoices in conducting sales and service provision transactions must comply with the provisions of e-transaction laws, accounting laws, and tax laws.

- The assignment of the tax authority's code on e-invoices is based on the information created on the invoice by the enterprise, economic organization, other organization, business household, or individual business.

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

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

Thus, it can be seen that the assignment of the tax authority's code on e-invoices is based on the information created on the invoice by the enterprise.

What is the e-invoice database used for in Vietnam?

According to Article 93 of the Law on Tax administration 2019, the regulations on the e-invoice database are as follows:

- The tax authority is responsible for organizing, building, managing, and developing the database, technical infrastructure of the invoice information system; organizing the tasks of collecting, processing information, managing the invoice database, and ensuring the maintenance, operation, security, and safety of the invoice information system; building a standard format for invoices.

The e-invoice database is used to serve tax administration and provide e-invoice information to relevant organizations and individuals.

- Enterprises and economic organizations specified in Clause 2, Article 91 of the Law on Tax administration 2019 that use e-invoices without a tax authority’s authentication code must provide e-invoice data according to 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 authorities have the responsibility to connect and share necessary related information and data in their administration field with the Ministry of Finance to build the e-invoice database.

- When inspecting goods circulating in the market, if e-invoices are used, state agencies and competent authorities must access the tax authority's e-portal to look up information on e-invoices to meet administration requirements, not requiring a paper invoice.

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

- The Minister of Finance regulates the template, administration, and use of e-stamps; regulates the look-up, provision, use of e-invoice information; and regulates the provision of e-invoice information in cases where invoice data lookup is not possible due to incidents or natural disasters affecting Internet access.

When inspecting goods circulating in the market, if e-invoices are used, state agencies and competent authorities must access the tax authority's e-portal to look up information on e-invoices to meet administration requirements, without requiring a paper invoice.

Thus, it can be seen that the e-invoice database is used to serve tax administration and provide e-invoice information to relevant organizations and individuals.