When is a retail invoice used in Vietnam? Does the retail invoice include the seller's TIN?

When is a retail invoice used in Vietnam?

Pursuant to Article 8 of Decree 123/2020/ND-CP, it is stipulated as follows:

Types of Invoices

Invoices stipulated in this Decree include the following types:

1. Value-added tax invoices are assigned to organizations declaring value-added tax by the deduction method, used for the following activities:

a) Sale of goods, provision of domestic services;

b) International transport activities;

c) Export to non-tariff zones and cases considered equivalent to export;

d) Export of goods, provision of services abroad.

2. Sales invoices are for organizations and individuals as follows:

a) Organizations and individuals declaring and calculating value-added tax by the direct method use them for the following activities:

- Sale of goods, provision of domestic services;

- International transport activities;

- Export to non-tariff zones and cases considered equivalent to export;

- Export of goods, provision of services abroad.

b) Organizations and individuals in non-tariff zones when selling goods, providing services domestically and when selling goods, providing services between organizations and individuals within non-tariff zones, and exporting goods, providing services abroad, invoices must state "For organizations and individuals in non-tariff zones".

3. Electronic invoices for selling public assets are used when selling the following assets:

a) Public assets at agencies, organizations, units (including state-owned housing);

b) Infrastructure assets;

c) Public assets assigned by the State to enterprises for management not accounted as state capital in enterprises;

d) Project assets using state funds;

e) Assets established as state ownership;

f) Public assets collected as per decision by competent authority;

g) Materials and supplies recovered from the handling of public assets.

4. Electronic invoices for selling national reserves used when agencies, units within the national reserve system sell national reserves in accordance with the law.

5. Other types of invoices, including:

a) Stamps, tickets, cards with form and content as prescribed in this Decree;

b) Air freight receipts; international transport service charge receipts; banking service charge receipts except where prescribed in point a of this clause with form and content established as per international practices and relevant laws.

6. Documents printed, issued, used and managed as invoices include internal transportation delivery notes, consignment notes for selling goods on commission.

7. The Ministry of Finance provides guidance on invoice display templates for the entities mentioned in Article 2 of this Decree for reference in implementation.

Thus, retail invoices are created when the seller issues to the buyer during the transaction.

When is a retail invoice used in Vietnam? Does the retail invoice include the seller's TIN? (Image source: Internet)

Does the retail invoice include the seller's TIN in Vietnam?

Pursuant to Article 10 of Decree 123/2020/ND-CP, which stipulates the content of invoices as follows:

Contents of Invoices

1. Invoice name, invoice symbol, sample code symbol. Specifically as follows:

a) The invoice name is the name of each type of invoice specified in Article 8 of this Decree displayed on each invoice, such as: VALUE-ADDED TAX INVOICE, VALUE-ADDED TAX INVOICE WITH TAX REFUND DECLARATION, VALUE-ADDED TAX INVOICE WITH RECEIPT, SALES INVOICE, PUBLIC ASSET SALES INVOICE, STAMPS, TICKETS, CARDS, NATIONAL RESERVE SALES INVOICE.

b) Sample code symbol, invoice symbol are implemented as guided by the Ministry of Finance.

2. Name of invoice copies applicable to invoices printed by the tax authority as guided by the Ministry of Finance.

3. Invoice number

a) Invoice number is the serial number displayed on the invoice when the seller issues the invoice. The invoice number is written in Arabic numerals with a maximum of 8 digits, starting from number 1 on January 1st or the date of beginning to use invoices and ending on December 31st each year with a maximum up to 99,999,999. Invoices are issued in continuous order from smallest to largest within a single invoice symbol and sample code symbol. For invoices printed by the tax authority, the invoice number is pre-printed on the invoice and the invoice buyer can use them all since purchase.

In the case of business organizations having multiple sales locations or multiple locations concurrently using a type of electronic invoice with the same symbol by random retrieval from an electronic invoice issuance system, invoices are issued in continuous order from smallest to largest according to the time the seller signs digitally or electronically on the invoice.

b) In case the invoice number is not issued according to the stated principle, the electronic invoice system must ensure an increasing principle over time, each invoice number must be issued and used only once and with a maximum of 8 digits.

4. Name, address, TIN of the seller

On the invoice, the name, address, TIN of the seller must be indicated according to the name, address, TIN shown in the enterprise registration certificate, branch operation registration certificate, business household registration certificate, taxpayer registration certificate, TIN notification, investment registration certificate, or cooperative registration certificate.

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Thus, according to the regulations, the retail invoice must not only show the seller's TIN but also the name and address of the seller according to the information on the enterprise registration certificate.

If a retail invoice has been issued but not yet delivered to the buyer, is the seller allowed to cross out the copies if errors are found in Vietnam?

Pursuant to Article 26 of Decree 123/2020/ND-CP which regulates the handling of invoices purchased from the tax agency that have been issued as follows:

Handling of Issued Invoices Purchased from the Tax Agency

1. If an issued invoice has not been delivered to the buyer, when errors are detected, the seller may cross out the copies and keep the erroneous issued invoice number.

2. In case the issued invoice has an error in the buyer's name or address but the buyer's TIN is correct, both parties shall prepare a memorandum for adjustment and no adjustment invoice is required.

3. In case an issued invoice has been delivered to the buyer but goods or services have not yet been delivered, or if the issued invoice has been delivered to the buyer, but both seller and buyer have not declared tax, if an error is found, it must be canceled. The seller and buyer shall prepare a memorandum to recover all copies of the erroneous issued invoice. The recovery memorandum must state clearly the reason for invoice recovery. The seller shall cross out the copies, keep the erroneous issued invoice, and re-issue a new correct invoice as per regulations.

4. In case an issued invoice has been delivered to the buyer, goods or services have been delivered, and both seller and buyer have declared tax, but an error is later found, the seller shall issue an adjustment invoice for the error. This invoice should clearly state adjustments (increase, decrease) in goods quantity, sales price, value-added tax rate, or value-added tax amount for the invoice number and symbol. Based on the adjustment invoice, both seller and buyer shall adjust their reported sales revenue, purchase, output, and input tax. The adjustment invoice must not contain negative (-) figures.

If the seller and buyer have agreed to record the error details before the seller issues an adjustment invoice, both parties must prepare a memorandum noting the error before the seller issues the adjustment invoice.

Thus, according to the legal regulations, if a retail invoice has been issued but not yet delivered to the buyer, and an error is found, the seller has the right to cross out the copies.