What is the latest invoice cancellation report form in Vietnam in 2024? Shall invoice destruction records be retained at the enterprise?

What is the latest invoice cancellation report form in Vietnam in 2024?

Based on Clause 10, Article 3 of Decree 123/2020/ND-CP as follows:

Definition of Terms

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

1. Invoice is an accounting document created by organizations or individuals selling goods, providing services, and recording information on goods sold or services provided. Invoices are presented in the form of electronic invoices or invoices printed by tax authorities.

2. Electronic invoice is an invoice with or without the tax authority's code represented in electronic data form, created by organizations or individuals selling goods, providing services using electronic means to record sales information according to regulations on accounting and tax laws, including cases where invoices are generated from cash registers connected to send electronic data to the tax authority, in which:

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10. Canceling invoices, documents means making those invoices, documents invalid for use.

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The cancellation of an issued electronic invoice is the act of making an electronic invoice with or without the tax authority's code invalid for use.

Additionally, the report on invoice destruction is one of four types of documents, among which must have a notification of invoice cancellation results specified in Article 27 of Decree 123/2020/ND-CP:

[1] Decision to establish the Invoice Destruction Council, except for business households, individuals;

[2] Inventory of invoices to be destroyed with detailed records.

[3] Invoice destruction report;

[4] The notification of invoice cancellation results must include contents according to Form No. 02/HUY-HDG of this Decree.

Below is the form for the invoice cancellation report according to the most recent Circular 78/2021/TT-BTC 2024 Download.

What is the latest invoice cancellation report form in Vietnam in 2024? Shall invoice destruction records be retained at the enterprise? (Image from the Internet)

Shall invoice destruction records be retained at the enterprise in Vietnam?

Based on Article 27 of Decree 123/2020/ND-CP, it is regulated as follows:

- Enterprises, economic organizations, business households, and individuals who have unused invoices must proceed with invoice destruction. The deadline for invoice destruction is no later than 30 days from the date of notification to the tax authority. In cases where the tax authority has notified that the invoice is invalid (except for notifications due to enforcement of tax debt), the unit must destroy the invoice within 10 days from the date the tax authority informed the invalidity or from the date the lost invoice is found.

Additionally, invoices already issued by accounting units are destroyed following the regulations of accounting law.

Invoices that have not been issued but serve as evidence in legal cases are not destroyed but handled according to legal regulations.

- Invoice destruction by enterprises, economic organizations, business households, and individuals should be conducted as follows:

+ Enterprises, economic organizations, and business households must create an inventory of invoices that need to be destroyed.

+ Enterprises and economic organizations must establish an Invoice Destruction Council. This council must include representatives from management and the accounting division of the organization. Business households and individuals are not required to establish a council when destroying invoices.

+ Members of the Invoice Destruction Council must sign the invoice destruction report and are legally liable for any errors.

Additionally, the invoice destruction records include:

- Decision to establish the Invoice Destruction Council, except for business households and individuals;

- Detailed inventory of invoices to be destroyed: Invoice name, sample number code, invoice symbol, quantity of invoices destroyed (from number... to number... or detailed number listing if invoices are not consecutive);

- Invoice destruction report;

- Notification of invoice destruction results must include content such as type, symbol, quantity from number… to number, reason for destruction, date and time of destruction, destruction method according to Form No. 02/HUY-HDG Appendix IA issued pursuant to this Decree.

Invoice destruction records are retained at the enterprise, economic organization, business household, or individual using the invoices. The Notification of Invoice Destruction Results is made in two copies, one kept on file and one sent to the direct tax authority no later than 5 days from the date of invoice destruction.

The tax authority conducts invoice destruction as follows:

- The tax authority destroys invoices printed by the Tax Department that have been announced but not sold or issued yet do not continue to be used.

- The General Department of Taxation is responsible for stipulating the invoice destruction process printed by the Tax Department.

Thus, invoice destruction records will be retained at the enterprise.

What are penalties for violations against regulations on cancellation of invoices in Vietnam?

According to regulations in Article 27 of Decree 125/2020/ND-CP, penalties for violations regarding canceling or destroying invoices are as follows:

- Caution for delays in canceling or destroying invoices from 1 to 5 working days past the due date, with mitigating circumstances.

- Fine from 2,000,000 to 4,000,000 VND for one of the following acts:

+ Failing to conformably cancel issued but unused invoices or invoices not valid for use;

+ Not canceling issued but unused invoices, or expired invoices purchased from the tax authority;

+ Cancelling or destroying invoices 1 to 10 working days past the due date.

- Fine from 4,000,000 to 8,000,000 VND for one of the following acts:

+ Cancelling or destroying invoices 11 working days or more past the due date;

+ Failing to cancel or destroy invoices according to legal regulations;

+ Not canceling incorrect electronic invoices after the tax authority informs of errors;

+ Not canceling unused printed invoices as per regulations;

+ Destroying invoices not following legal procedures;

+ Destroying invoices not under the required circumstances.

- Corrective measures: Compulsory invoice cancellation or destruction as stated in point b of Clause 2, points b, c, d of Clause 3 of this Article.

Thus, penalties range from 2,000,000 to 8,000,000 VND depending on specific violations, in addition to mandatory invoice destruction as corrective action.