What is the purpose of regulatory authorities using e-invoice information in Vietnam?

Vietnam: What is the purpose of regulatory authorities using e-invoice information?

Based on Clause 2, Article 46 of Decree 123/2020/ND-CP, the regulation provides that parties using e-invoice information include:

- Enterprises, economic organizations, households, and individual businesses as sellers of goods and service providers; organizations and individuals as purchasers of goods and services;

- Regulatory authorities use e-invoice information to carry out administrative procedures in accordance with the law; verify the legitimacy of goods circulating in the market;

- Credit institutions use e-invoice information to perform tax procedures, bank payment procedures;

- Organizations providing e-invoice services.

- Organizations using e-document information to deduct personal income tax.

Thus, according to the above regulations, regulatory authorities use e-invoice information for two purposes:

[1] To carry out administrative procedures as prescribed by law;

[2] To verify the legality of goods circulating in the market.

What is the purpose of regulatory authorities using e-invoice information in Vietnam? (Image from the Internet)

Is there a need to protect state secrets when using e-invoice information in Vietnam?

According to Article 44 of Decree 123/2020/ND-CP, the principles for searching, providing, and using e-invoice information are regulated as follows:

- Searching, providing, and using e-invoice information is applied for performing tax procedures, bank payment procedures, and other administrative procedures; proving the legality of goods circulating in the market.

- The search and provision of e-invoice information must ensure completeness, accuracy, promptness, and appropriateness to the object.

- The use of provided e-invoice information must be for the correct purpose, serve the operational activities according to the function, tasks of the information user; and must comply with the laws on the protection of state secrets.

In addition, the method for exploiting and using e-invoice information on the e-portal will be based on Article 47 of Decree 123/2020/ND-CP regulating the exploitation and use of e-invoice information on the e-portal as follows:

- Information users, including enterprises, economic organizations, households, and individual businesses as sellers of goods and service providers; organizations and individuals as purchasers of goods, services access the e-portal of the General Department of Taxation to search e-invoice information under the content of e-invoice information.

- Information users such as regulatory authorities, credit institutions, and organizations providing e-invoice services that have signed an information exchange regulation or contract must register and be granted access rights, connect, and use e-invoice information from the General Department of Taxation as follows:

+ Apply valid digital signatures according to legal provisions;

+ Implement data encryption during transmission;

+ Ensure information security as prescribed by law;

+ Comply with the technical requirements published by the General Department of Taxation, including information criteria, data format, connection method, frequency of information exchange.

Information users referred to in Clause 2, Article 47 of Decree 123/2020/ND-CP are responsible for appointing a point of contact to register the use of e-invoice information (hereinafter referred to as the point of contact) and notifying the General Department of Taxation in writing.

Thus, according to the principles when using information in e-invoices, it is necessary to ensure compliance with the laws on the protection of state secrets.

How to terminate the use of forms of e-invoice information use in Vietnam?

According to Article 50 of Decree 123/2020/ND-CP regulating the termination of forms of providing, using e-invoice information as follows:

- The General Department of Taxation shall revoke the access account to the e-portal or revoke the validity of the messaging form of mobile phone numbers in the following cases:

+ Upon request from the point of contact of the information user;

+ The expiration of the term of use;

+ The e-portal access account or mobile phone number does not look up information for 06 consecutive months;

+ Detection of misuse of e-invoice information that does not serve the operational activities according to the function, tasks of the information user, and is not in compliance with the laws on the protection of state secrets.

- The General Department of Taxation shall terminate the connection of the information user's system with the e-portal in the following cases:

+ Upon request from the point of contact of the information user;

+ Detection of misuse of e-invoice information that does not serve the operational activities according to the function, tasks of the information user, and is not in compliance with the laws on the protection of state secrets.

- No later than 05 working days before the official termination date of the forms of providing, using e-invoice information of the information user (except in cases where the point of contact of the information user requests in writing), the General Department of Taxation shall notify in writing to the point of contact of the information user about the termination of the forms of providing, using e-invoice, e-document information, clearly stating the reason for termination.