When is a foreign currency used in invoices in Vietnam according to Decree 123?

When is a foreign currency used in invoices in Vietnam according to Decree 123?

Based on point c, clause 13, Article 10 of Decree 123/2020/ND-CP, the regulation is as follows:

Content of the Invoice

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13. Language, Numerals, and Currency Shown on the Invoice

a) The language displayed on the invoice is Vietnamese. In cases where it is necessary to include a foreign language, the foreign language must be placed to the right in parentheses ( ) or immediately below the Vietnamese line and must have a smaller font size than the Vietnamese text. If the text on the invoice is non-accented Vietnamese, it must ensure that the accentless text on the invoice does not lead to misinterpretation of the invoice content.

b) The numerals displayed on the invoice are Arabic numerals: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9. The seller may choose: after the thousand, million, billion, thousand billion, million billion, billion billion figures, a dot (.) is to be placed; if there are numerals after the unit figure, a comma (,) is to be placed or using a comma (,) as a natural number separator after the thousand, million, billion, thousand billion, million billion, billion billion figures, and a dot (.) after the unit figure on accounting documents.

c) The currency stated on the invoice is Vietnam Dong, with the national symbol “đ”.

- In case the economic and financial transactions arise in foreign currency as per the law on foreign exchange, the unit price, total amount, total amount of value-added tax for each tax rate type, total value-added tax, and the total amount payable are recorded in a foreign currency, with the currency unit named in the foreign currency. The seller simultaneously displays on the invoice the foreign exchange rate with Vietnam Dong according to the exchange rate as prescribed by the Tax Management Law and its guiding documents.

- The foreign currency code according to international standards (example: 13,800.25 USD - Thirteen thousand eight hundred dollars and twenty-five cents, example: 5,000.50 EUR- Five thousand euros and fifty cents).

- In cases of selling goods that arise in foreign currency according to the law on foreign exchange and tax payment is allowed in foreign currency, the total amount payable on the invoice is shown in foreign currency, not converted to Vietnam Dong.

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Generally, the currency stated on the invoice is Vietnam Dong, symbolized as "đ".

However, in the following two cases, invoices can be issued in foreign currency as follows:

(1) In case economic and financial transactions arise in foreign currency according to the law on foreign exchange, the unit price, total amount, total amount of value-added tax for each tax rate type, total amount of value-added tax, and total amount payable are recorded in the foreign currency, with the currency unit named in the foreign currency.

The seller simultaneously displays on the invoice the foreign exchange rate with Vietnam Dong according to the exchange rate as prescribed by the Tax Management Law 2019 and its guiding documents.

(2) In cases of selling goods that arise in foreign currency according to the law on foreign exchange and tax payment is allowed in foreign currency, the total amount payable on the invoice is shown in foreign currency, not converted to Vietnam Dong.

When is a foreign currency used in invoices in Vietnam according to Decree 123? (Image from the Internet)

What are the penalties for issuing invoices at the wrong time in Vietnam?

Based on Article 24 of Decree 125/2020/ND-CP, which specifies sanctions for violations of invoice preparation regulations when selling goods and services:

Depending on the level of violation, enterprises with the act of issuing invoices at the wrong time will be penalized as follows:

Note: The above fines apply to organizations. In the case of individual violations, the fine is half of that for organizations.

What is the time limit for imposition of invoice-related administrative violations in Vietnam?

Based on Article 8 of Decree 125/2020/ND-CP (amended by clause 1, Article 1 Decree 102/2021/ND-CP), the regulation is as follows:

time limits for imposition of Administrative Penalties on Tax and Invoices; Conditions Deemed Unpenalized; Duration for Retrospective Tax Collection

1. time limits for imposition of administrative penalties on invoices

a) The time limits for imposition of administrative penalties on invoices is 2 years.

b) The starting point for calculating the time limits for imposition of administrative penalties on invoices is regulated as follows:

For administrative violations being carried out as specified in point c of this clause, the time limits for imposition of is calculated from the day the competent person in charge of public duty discovers the violation.

For completed administrative violations as specified in point d of this clause, the time limits for imposition of is calculated from the day the violation ends.

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The time limits for imposition of administrative penalties on invoices is 2 years.