What is the definition of unauthenticated e-invoice in Vietnam? What enterprises may use unauthenticated e-invoices?

What is the definition of unauthenticated e-invoice in Vietnam?

Under Clause 2, Article 3 of Decree 123/2020/ND-CP, the following provisions are made:

Explanation of terms

In this Decree, the following terms are understood as follows:

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1. “e-invoice” means an invoice, with or without the tax authority’s authentication code, in the form of electronic data, issued by the goods seller or service provider by using electronic instruments to record information on the sale of goods or service provision in accordance with regulations of the Law on accounting and the Law on taxation, including the invoices generated by POS cash registers that are digitally connected to tax authorities. To be specific:

a) “authenticated e-invoice” means an e-invoice that is granted an authentication code by the tax authority before it is sent to the buyer by the goods seller or service provider.

The authentication code on an e-invoice is a unique serial number generated by the tax authority’s system and a series of characters encoded by the tax authority based on the information specified by the seller on the invoice.

b) “unauthenticated e-invoice” means an e-invoice that is sent to the buyer by the goods seller or service provider without the tax authority’s authentication code.

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An electronic invoice means an invoice, with or without the tax authority’s authentication code, in the form of electronic data, issued by the goods seller or service provider by using electronic instruments to record information on the sale of goods or service provision in accordance with regulations of the Law on accounting and the Law on taxation, including the invoices generated by POS cash registers that are digitally connected to tax authorities.

“Unauthenticated e-invoice” means an e-invoice that is sent to the buyer by the goods seller or service provider without the tax authority’s authentication code.

What is the definition of unauthenticated e-invoice in Vietnam? What enterprises may use unauthenticated e-invoices? (Image from the Internet)

What enterprises may use unauthenticated e-invoices in Vietnam?

Under Clause 2, Article 91 of Law on Tax Administration 2019, the following provisions are made:

Use of electronic invoices in sale of goods and services

1. Enterprises and business organizations shall use authenticated electronic invoices when selling their goods/services, regardless of the value of each sale, except for the cases specified in Clause 2 and Clause 4 of this Article.

2. Enterprises operating in the field of electricity, oil and gas, post and telecommunications, clean water supply, credit, insurance, health, e-commerce, supermarket, commerce, air/road/rail/sea/inland waterway transport; enterprises and business organizations that have been or will conduct electronic transactions with tax authorities, develop information technology infrastructure, have software for accounting, issuance, access and storage of electronic invoices, and ensure the transmission of electronic invoice data to buyers and tax authorities may use unauthenticated electronic invoices when selling goods/services, regardless of the value of each sale, unless tax-related risks are high as prescribed by the Minister of Finance or they wish to use authenticated electronic invoices.

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Enterprises allowed to use unauthenticated e-invoices in Vietnam include:

- Enterprises operating in the field of electricity, oil and gas, post and telecommunications, clean water supply, credit, insurance, health, e-commerce, supermarket, commerce, air/road/rail/sea/inland waterway transport.

- Enterprises and business organizations that have been or will conduct electronic transactions with tax authorities, develop information technology infrastructure, have software for accounting, issuance, access and storage of electronic invoices, and ensure the transmission of electronic invoice data to buyers and tax authorities.

Note: The above-mentioned enterprises may use unauthenticated electronic invoices when selling goods/services, regardless of the value of each sale, unless tax-related risks are high as prescribed by the Minister of Finance or they wish to use authenticated electronic invoices.

When can a valid electronic invoice be converted into a paper invoice in Vietnam?

Under Article 7 of Decree 123/2020/ND-CP, the following provisions are made:

Conversion of e-invoices/electronic records into paper invoices/records

1. Legal e-invoices/electronic records may be converted into paper invoices/records to meet the requirements of economic/financial transactions or at the request of tax authorities, audit, inspection or investigation authorities, and in accordance with regulations of laws on inspection and investigation.

2. Contents of a paper invoice or record which is converted from an e-invoice or electronic record must correspond to those of the original e-invoice or electronic record.

3. In case where an e-invoice or electronic record is converted into a paper invoice or record, this paper invoice or record shall be retained for bookkeeping and monitoring purposes only in accordance with regulations of the Laws on accounting and electronic transactions, and shall not be valid for use in transactions or payments, except for cases where invoices are generated from POS cash registers that are digitally connected to tax authorities in accordance with the provisions herein.

A valid electronic invoice can be converted into a paper invoice to meet the requirements of economic/financial transactions or at the request of tax authorities, audit, inspection or investigation authorities, and in accordance with regulations of laws on inspection and investigation.