What is the authorization to issue e-invoices in Vietnam?

What is the authorization to issue e-invoices in Vietnam?

Currently, the law does not specifically define what authorization to issue e-invoices is. However, it can be understood as the authorization given by one party (usually the seller or service provider) to a third party to issue e-invoices on its behalf for sales and services activities and to send these e-invoices on its behalf.

According to point a, clause 1, Article 3 of Circular 78/2021/TT-BTC as follows:

authorization to issue e-invoices

1. Principles of authorization for Issuing Invoices

a) A seller of goods, service provider which is an enterprise, economic organization, or another organization is entitled to delegate a third party that is related to the seller and meets the conditions to use e-invoices and is not subject to the cases of discontinuance of e-invoice usage as stipulated in Article 16 of Decree No. 123/2020/ND-CP to issue e-invoices for the sale of goods or services. The linked relationship is determined in accordance with tax management law;

b) The authorization must be documented in writing (contract or agreement) between the delegator and the delegatee;

c) The authorization must be notified to the tax authority when registering to use e-invoices;

d) e-invoices issued by authorized organizations can be e-invoices with or without tax authority codes and must display the name, address, and tax code of both the delegator and the delegatee;

e) Both the delegator and the delegatee must publicly display the authorization on their respective websites or announce it through public media so that buyers of goods and services are informed about the authorization for invoice issuance. Upon the expiration of the authorization term or its premature termination as agreed between the parties, the delegator and delegatee must cancel the listings, announcements on their websites, or make public announcements in the media about the authorization for invoice issuance;

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Thus, a seller of goods or service provider which is an enterprise, economic organization, or another organization has the right to delegate a third party that is related to the seller and meets the conditions for using e-invoices and is not subject to the cases of discontinuance of e-invoice usage as stipulated by law.

What is the authorization to issue e-invoices in Vietnam? (Image from the Internet)

What are contents of authorization contracts for issuing e-invoices to third parties in Vietnam?

Based on clause 2, Article 3 of Circular 78/2021/TT-BTC, the authorization contract for issuing e-invoices must contain the following information:

- Information of the delegator and the delegatee (name, address, tax code, digital certificate);

- Information about the delegated e-invoice (invoice type, invoice symbol, form number);

- Purpose of the authorization;

- Term of the authorization;

- Payment method for the delegated invoice (clearly indicating the responsibility for payment of goods/services on the delegated invoice);

Both the delegator and the delegatee are responsible for storing the written authorization and must present it upon request by the competent authority.

What are the cases of suspension of use of e-invoices in Vietnam?

Based on clause 1, Article 16 of Decree No. 123/2020/ND-CP, enterprises, economic organizations, other organizations, households, and individuals engaged in business activities must discontinue the use of e-invoices with the tax authority code and e-invoices without the tax authority code if they fall into the following categories:

- Enterprises, economic organizations, other organizations, households, individuals engaged in business activities terminate their tax code validity;

- Enterprises, economic organizations, other organizations, households, individuals engaged in business activities are identified and notified by the tax authority as not operating at the registered address;

- Enterprises, economic organizations, other organizations, households, individuals engaged in business activities notify the competent state agency of suspension of business activities;

- Enterprises, economic organizations, other organizations, households, individuals engaged in business activities have tax authority notifications requiring the discontinuance of e-invoice usage to enforce tax debt;

- Engaging in acts of using e-invoices for selling smuggled goods, prohibited goods, counterfeit goods, or infringing on intellectual property rights detected by competent authorities and notified to the tax authority;

- Engaging in creating e-invoices for the purpose of fraudulent sales of goods/services to misappropriate money from organizations or individuals detected by competent authorities and notified to the tax authority;

- The business registration agency or other competent state authority requires the enterprise to temporarily cease business in conditional business sectors when it finds the enterprise lacks sufficient legal business qualifications.

Note: Based on inspection results, if the tax authority determines that an enterprise was established to conduct illegal purchase or use of e-invoices, or unlawfully use e-invoices to evade taxes, as regulated, the tax authority will issue a decision to discontinue e-invoice usage; the enterprise will be dealt with according to the law.