What is the guidance on declaring replacement invoices in Vietnam in different periods in 2024?
What is the guidance on declaring replacement invoices in Vietnam in different periods in 2024?
Based on point b, clause 2, Article 19 of Decree 123/2020/ND-CP, the regulations are as follows:
Handling Faulty Invoices
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2. In case electronic invoices with or without a tax authority code already sent to the buyer are found by the buyer or seller to have errors, they shall be handled as follows:
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b) In cases of errors: tax codes, incorrect amounts recorded on invoices, incorrect tax rates, tax amounts, or goods recorded on invoices that do not meet specifications or quality, it is possible to choose one of the two ways to use electronic invoices as follows:
b1) The seller issues an electronic invoice to adjust the incorrect invoice. If the seller and buyer agree to create a written agreement before issuing the adjustment invoice for the erroneous invoice, the seller and buyer create a written agreement specifying the errors, then the seller issues an electronic invoice to adjust the incorrect invoice.
The electronic invoice adjusting the erroneous electronic invoice must contain the phrase “Adjustment for invoice Template number... symbol... number... date... month... year”.
b2) The seller issues a new electronic invoice to replace the erroneous electronic invoice unless there is an agreement between the seller and buyer to create a written agreement before issuing a replacement invoice for the incorrect invoice. In that case, the seller and buyer create a written agreement specifying the errors, then the seller issues a new electronic invoice to replace the incorrect invoice.
The new electronic invoice replacing the erroneous electronic invoice must contain the phrase “Replacement for invoice Template number... symbol... number... date... month... year”.
The seller digitally signs the new electronic invoice adjusted or replaced for the erroneous invoice and then sends it to the buyer (in the case of using electronic invoices without a tax authority code) or sends it to the tax authority to obtain a code for the new invoice to send to the buyer (in the case of using electronic invoices with a tax authority code).
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Therefore, when electronic invoices have errors such as incorrect tax codes, amounts, tax rates, or goods recorded on invoices that do not meet specifications or quality, the taxpayer can choose one of two methods: issue an adjustment invoice or issue a replacement invoice for the incorrect invoice.
And based on Article 5 of Decree 209/2013/ND-CP, it is stipulated:
Timing for Determining Value Added Tax
1. The time to determine value added tax for goods is when ownership or right of use is transferred to the buyer, regardless of whether payment has been received.
2. The time to determine value added tax for services is when the service supply is completed or when the service invoice is issued, regardless of whether payment has been received.
3. The Ministry of Finance shall provide specific guidance on the timing for determining value added tax for some special cases.
Additionally, according to Article 8 of Circular 219/2013/TT-BTC, it is regulated as follows:
- The time to determine value-added tax for goods is when the ownership or right of use is transferred to the buyer, regardless of whether payment has been received.
- The time to determine value-added tax for services is when the service provision is completed or when the service invoice is issued, regardless of whether payment has been received.
Simultaneously, clause 1, Article 47 of the Law on Tax Administration 2019 stipulates:
Taxpayers may submit additional declarations for each tax return if they find errors within 10 years from the expiration of the deadline for filing tax declarations for the tax period that has errors, but before the tax authority or competent authority announces the decision to inspect or check.
Thus, issuing a replacement or adjustment invoice for an erroneous invoice will alter the VAT obligations previously declared. Therefore, the enterprise must file a supplemental VAT declaration for the month (or quarter) with the erroneous invoice.
If the replacement or adjustment invoice and the original incorrect or adjusted invoice occur in two different tax periods, the enterprise must declare the replacement or adjustment invoice on the supplemental declaration of the period in which the erroneous or adjusted invoice arises.
What is the guidance on declaring replacement invoices in Vietnam in different periods in 2024? (Image from the Internet)
How to implement the replacement invoice declaration in a different period in Vietnam?
Individuals shall declare the latest replacement invoice in a different period according to Circular 78/2021/TT-BTC as follows:
| Error | Declaration Indicator | Procedure Error does not affect the tax payable or deductible tax. |
| Error in indicator [23]: Value of goods purchased [29],[30],[32],[32a]: Revenue from goods and services sold at VAT rates of 0%; Revenue from goods and services sold at VAT rates of 5%; Revenue from goods and services sold at VAT rates of 10%; Revenue from goods and services sold without tax |
Only submit an additional declaration explanation and related documents, not an amended declaration. | |
| If the effect of the additional declaration results in increased tax payable or decreased tax refund of the original period | Error causing increase, decrease in indicator [40] "KHBS" | Create an Additional Declaration, Explanation: For the incorrect period declaration: - Adjust input VAT on indicators [23], [24], [25] to the correct figures with KHBS - Adjust indicators: [29], [30], [31], [32], [33] to the correct figures with KHBS Pay the deficiency tax amount and late payment interest If indicator [40] "KHBS" <0: Offset against tax payable in the next period. |
| If the effect of the additional declaration only increases or decreases the remaining deductible VAT transferred to the next period of the original period | Error only affects increase, decrease in indicator [43] | Create an Additional Declaration, Explanation: For the incorrect period declaration: - Adjust input VAT on indicators [23], [24], [25] to the correct figures with KHBS - Adjust indicators: [29], [30], [31], [32], [33] to the correct figures with KHBS For the discovery period declaration: - If indicator [43] "KHBS" >0: Record increased difference to indicator [38] of the discovery period. - If indicator [43] "KHBS" <0: Record decreased difference to indicator [37] of the discovery period. |
What are things to note when filing supplemental tax declarations?
Based on clauses 2, 3, Article 47 of the Law on Tax Administration 2019 regulating the supplemental tax declarations as follows:
- Taxpayers discovering errors in their tax returns submitted to the tax authority are allowed to file supplemental tax returns within 10 years from the deadline for filing tax returns.
- When the tax authority or competent authority announces the decision to inspect or check tax at the taxpayer's headquarters, the taxpayer is still allowed to file supplemental tax declarations.
- Taxpayers are allowed to file supplemental tax declarations in cases where it leads to increased tax payable, reduced deductible tax, or reduced exempted, reduced, or refunded tax and is subject to administrative penalties for tax management violations.
- In cases where the taxpayer discovers the tax declaration has errors and the supplemental declaration reduces tax payable or increases deductible tax, increases exempted, reduced, or refunded tax.
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