What must be ensured when issuing authentication code for authenticated e-invoices in Vietnam?

What must be ensured when issuing authentication code for authenticated e-invoices in Vietnam?

According to Clause 2, Article 17 of Decree 123/2020/ND-CP, the issuance of e-invoices with codes from tax authorities must ensure the following:

- Invoices issued with codes from tax authorities must ensure:

+ Full content of the e-invoice as prescribed in Article 10 of Decree 123/2020/ND-CP.

+ Correct format of the e-invoice as prescribed in Article 12 of Decree 123/2020/ND-CP.

+ Accurate registration information as prescribed in Article 15 of Decree 123/2020/ND-CP.

+ Not subject to termination of the use of e-invoices with codes from tax authorities as prescribed in Clause 1, Article 16 of Decree 123/2020/ND-CP.

- The invoice code issuance system of the General Department of Taxation automatically issues authentication code and sends the invoice code issuance results to the sender.

In addition, enterprises, economic organizations, other organizations, households, and individuals selling goods or providing services are responsible for sending electronically coded invoices with tax authority codes to the buyer. The method of sending and receiving invoices is carried out according to the agreement between the seller and the buyer, ensuring compliance with the provisions of the law on e-transactions.

What must be ensured when issuing authentication code for authenticated e-invoices in Vietnam? (Image from the Internet)

When to issue an unauthenticated e-invoice?

According to Article 18 of Decree 123/2020/ND-CP:

Issuing unauthenticated e-invoices

1. Enterprises and economic organizations may use unauthenticated e-invoices when selling goods or providing services after receiving acceptance notification from the tax authority.

2. Enterprises and economic organizations shall use software to issue e-invoices when selling goods or providing services, digitally sign the e-invoices, and send them to the buyers by e-means as agreed upon between the seller and the buyer, ensuring compliance with the provisions of the law on e-transactions.

Thus, according to these regulations, enterprises and economic organizations may use unauthenticated e-invoices when selling goods or providing services after receiving acceptance notification from the tax authority.

In addition, enterprises and economic organizations shall use software to issue e-invoices when selling goods or providing services, digitally sign the e-invoices, and send them to the buyers by e-means as agreed upon between the seller and the buyer, ensuring compliance with the provisions of the law on e-transactions.

How to handle erroneous authenticated e-invoices which have not been sent to buyers in Vietnam?

According to Article 19 of Decree 123/2020/ND-CP on handling erroneous invoices:

Handling erroneous invoices

1. In case the seller discovers that the authenticated e-invoice has errors and it has not been sent to the buyer, the seller shall notify the tax authority using Form No. 04/SS-HDDT in Appendix IA attached to this Decree to cancel the erroneous electronically coded invoice and issue a new e-invoice, digitally sign it, and send it to the tax authority for issuing a new invoice code to replace the erroneous invoice to send to the buyer. The tax authority shall cancel the erroneous electronically coded invoice stored in the tax authority's system.

2. In case the authenticated e-invoice or the unauthenticated e-invoice has been sent to the buyer and errors are discovered by either the buyer or the seller, handle it as follows:

a) If there are errors in the buyer's name or address not affecting the tax code, other information remains unchanged, the seller informs the buyer about the invoice error and there is no need to re-issue the invoice. The seller shall notify the tax authority about the erroneous e-invoice using Form No. 04/SS-HDDT in Appendix IA attached to this Decree, except for cases of non-tax authority coded e-invoices where the erroneous data has not yet been sent to the tax authority.

b) If there are errors in: the buyer's tax code; the amount on the invoice, the tax rate, or the tax amount; or in case the goods listed do not meet the specifications or quality, choose one of the following options:

b1) The seller issues an adjustment e-invoice for the erroneous invoice. If the seller and buyer agree to write a record before issuing the adjustment invoice for the erroneous invoice, they shall record the errors and then the seller issues an adjustment e-invoice for the erroneous invoice.

The adjustment e-invoice must include the phrase "Adjustment to invoice form number...sign...number...date...".

b2) The seller issues a new e-invoice to replace the erroneous invoice except in cases where the seller and buyer agree to write a record before issuing the replacement invoice for the erroneous invoice; they shall record the errors and then the seller issues a new e-invoice to replace the erroneous invoice.

The new e-invoice must include the phrase "Replacement for invoice form number...sign...number...date...".

The seller digitally signs the adjustment or replacement e-invoice and then sends it to the buyer (for cases using non-tax authority coded e-invoices) or sends it to the tax authority for issuing a new code for the electronically coded invoice to send to the buyer (for cases using electronically coded invoices from tax authorities).

c) For the aviation industry, adjustment or reimbursement of air transport vouchers is considered an adjustment invoice without needing the phrase "Adjustment for invoice form number...sign...date...". Airlines may issue their invoices for cases of reimbursement or voucher exchange issued by agents.

3. If the tax authority discovers erroneous authenticated e-invoices from the tax authority or non-tax authority coded e-invoices, the tax authority shall notify the seller using Form No. 01/TB-RSDT in Appendix IB attached to this Decree, for the seller to check for errors.

The seller must notify the tax authority about the erroneous e-invoices using Form No. 04/SS-HDDT in Appendix IA attached to this Decree by the deadline stated in Form No. 01/TB-RSDT in Appendix IB. If the seller fails to notify by the specified deadline, the tax authority shall re-notify the seller using Form No. 01/TB-RSDT in Appendix IB. If the seller still fails to notify after the second notification deadline in Form No. 01/TB-RSDT in Appendix IB, the tax authority shall consider checking the use of e-invoices.

4. Within one working day, the tax authority shall notify the reception and handling results using Form No. 01/TB-HDSS in Appendix IB attached to this Decree. Canceled e-invoices are not valid for use but are stored for reference.

Thus, according to the above regulations, if authenticated e-invoices which have not been sent to buyers contain errors, handle it by notifying the tax authority using Form No. 04/SS-HDDT Download about canceling the erroneous electronically coded invoice and issuing a new e-invoice, digitally signing it, and sending it to the tax authority for a new invoice code to replace the erroneous invoice to send to the buyer.

The tax authority shall cancel the erroneous electronically coded invoices stored in the tax authority's system.