What is the schedule of the 2025 Tet holiday for banks in Vietnam? Does a bank issue invoices when collecting interest in Vietnam?

What is the schedule of the 2025 Tet holiday for banks in Vietnam?

Based on Notice 6150/TB-BLDTBXH of 2024 by the Ministry of Labor - Invalids and Social Affairs implementing the Prime Minister's directive in Official Dispatch No. 8726/VPCP-KGVX of 2024 from the Government Office of Vietnam regarding the 2025 Tet holiday holiday for officials and public employees and workers as follows:

1. Officials and public employees and workers in administrative agencies, career organizations, political organizations, and socio-political organizations (hereinafter referred to as officials and public employees) will have the 2025 Tet holiday holiday from Saturday, January 25, 2025 (the 26th day of the 12th lunar month of the Year of the Dragon) to the end of Sunday, February 2, 2025 (the 5th day of the 1st lunar month of the Year of the Snake). This holiday includes 5 days of Tet holiday and 4 weekends.

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6. Agencies and units that do not follow the fixed Saturday and Sunday weekends will arrange their own holiday schedule according to the unit's specific program and plan, in compliance with the law.

7. For employees not subject to the provisions of item 1 of this Notice, employers decide on the Tet holiday holiday, National Day holiday, Victory Day on April 30, and Labor Day on May 1, 2025, as follows:

- For the Tet holiday holiday: choose 1 day at the end of the Year of the Dragon and 4 days at the beginning of the Year of the Snake, or 2 days at the end of the Year of the Dragon and 3 days at the beginning of the Year of the Snake, or 3 days at the end of the Year of the Dragon and 2 days at the beginning of the Year of the Snake.

- For the National Day holiday: Tuesday, September 2, 2025, and choose one of these two days: Monday, September 1, 2025, or Wednesday, September 3, 2025.

- Notify workers of the Tet holiday and National Day holiday plan for 2025 at least 30 days before implementation.

- If a weekly day off coincides with a holiday as regulated in item 1 of Article 112 of the Labor Code, the worker is entitled to a compensatory day off on the next working day according to item 3 of Article 111 of the Labor Code.

- Employers are encouraged to apply the Tet holiday, National Day, Victory Day on April 30, and Labor Day on May 1, 2025, holidays for workers as regulated for officials and public employees.

The Tet holiday holiday for 2025 for officials and public employees totals 9 days from January 25, 2025 (26th day of the 12th lunar month) to February 2, 2025 (5th day of the Tet holiday).

For workers in enterprises (including Banks), the 2025 Tet holiday holiday can be chosen from one of the following three options:

- 1 day at the end of the Year of the Dragon and 4 days at the beginning of the Year of the Snake.

- 2 days at the end of the Year of the Dragon and 3 days at the beginning of the Year of the Snake.

- 3 days at the end of the Year of the Dragon and 2 days at the beginning of the Year of the Snake.

Currently, banks have not issued an official notice about the 2025 Tet holiday holiday schedule. However, traditionally, bank holidays often coincide with those of officials and public employees, specifically from Saturday, January 25, 2025, to Sunday, February 2, 2025, according to the Gregorian calendar. However, the official schedule may vary depending on each bank and will be announced later.

Below is the 2025 Tet holiday holiday schedule for VIB Bank announced on December 16, 2024:

What is the schedule of the 2025 Tet holiday for banks in Vietnam? (Image from the Internet)

Does a bank issue invoices when collecting interest in Vietnam?

Based on Official Dispatch 1332/TCT-DNL of 2014 regarding interest collection records banks are guided as follows:

Based on Official Dispatch No. 1005/TCT-CS dated March 28, 2011, from the General Department of Taxation guiding:

"… In cases where fee collection records in the service activities of banks and credit organizations are transaction records printed from within the system and the content complies with international practices (transaction information, fee information is included in the transaction program, when the transaction is completed, the record displays transaction content, necessary criteria according to the policy record regulations, tax information (transaction amount, tax rate, VAT, total payment amount) fully displays on the record, each record has a unique transaction reference in the whole system, meets management requirements and is compatible with the goal of enhancing enterprise autonomy then Banks and Credit Institutions are permitted to use current transaction records that also serve as VAT invoices or sales invoices under the name "Transaction record"…"

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Based on the above regulations, in the case of Vietnam Joint Stock Commercial Bank for Industry and Trade has used interest collection records printed from the system and on the record, it shows transaction information and ensures uniqueness throughout the system, Vietnam Joint Stock Commercial Bank for Industry and Trade may use this record for accounting and returning to the customer.

Vietnam Joint Stock Commercial Bank for Industry and Trade was fined for violating invoice issuance regulations according to clause 2 Article 10 of Circular No. 10/2014/TT-BTC dated January 17, 2014, by the Ministry of Finance. Vietnam Joint Stock Commercial Bank for Industry and Trade is required to notify the issuance of additional interest collection records in accordance with Circular 64/2013/TT-BTC dated May 15, 2013, by the Ministry of Finance.

For customers using interest payment records where the loan is for the unit's business production activities and has been fully declared according to regulations, customers can include it in the deductible expenses to determine corporate income tax.

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Additionally, according to Official Dispatch 39989/CT-TTHT of 2018 guiding on value-added tax issues, invoices regarding banks' activities as follows:

Based on Circular No. 39/2014/TT-BTC dated March 31, 2014, by the Ministry of Finance guiding invoice issuance for goods and service sales in certain cases:

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Based on the regulation above, in the cooperative contract between a Bank and Vinh Thien Duong Co., Ltd (hereinafter referred to as Vinh Thien Duong) when customers borrow from Maritime Bank to purchase goods and services from Vinh Thien Duong Co., Ltd., which Vinh Thien Duong agrees to pay the interest on behalf of the customers, there are two ways to handle interest payment:

1. The bank deducts directly from Vinh Thien Duong's account.

2. The bank deducts from the borrower's account, then Vinh Thien Duong returns the deducted amount to the borrower's account.

The essence of the money the bank receives from Vinh Thien Duong according to the cooperative contract is the interest from the loan contract signed between the bank and the borrower. Thus, this is a credit activity of the bank for its customers, and this interest is considered as revenue from lending activities of the bank. When receiving money, the bank must issue an invoice to the borrower.

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The bank is responsible for issuing VAT invoices for the interest from customers. Specifically, when the bank receives interest from customers, this amount is treated as revenue from the bank's lending activities. Therefore, the bank should issue an invoice to the customer for the interest collected.

However, in some cases, banks may not need to issue a VAT invoice and can replace it with a legitimate interest collection record.

What are prohibited acts in the domain of invoices and records in Vietnam?

According to Article 5 of Decree 123/2020/ND-CP specific prohibitions in the domain of invoices and records are listed as follows:

(1) For Tax Officials

- Causing inconvenience and difficulties for organizations and individuals purchasing invoices and records;

- Conducting acts of covering up or colluding with organizations or individuals to use illegal invoices and records;

- Accepting bribes during inspection and examination related to invoices.

(2) For Organizations, Individuals Selling, Providing Goods and Services, and Related Parties

- Engaging in deceptive acts such as using illegal invoices or unlawfully using invoices;

- Obstructing tax officials in the discharge of their duties, specifically acts that harm the health and dignity of tax officials during invoice and record inspections;

- Unauthorized access, alteration, or destruction of information systems for invoices and records;

- Bribing or performing other acts related to invoices and records for illicit gains.