When is the invoicing time for office leasing contracts in Vietnam?

When is the invoicing time for office leasing contracts in Vietnam?

Based on Clause 2, Article 9 of Decree 123/2020/ND-CP, the specific invoicing time is regulated as follows:

Invoicing time

1. The invoicing time for the sale of goods (including the sale of state assets, confiscated assets, assets added to the national treasury, and the sale of national reserves) is the time of transfer of ownership or the right to use goods to the buyer, irrespective of whether payment is received.

2. The invoicing time for the supply of services is the time when the service is completed, irrespective of whether payment is received. If the service provider collects payment in advance or during the service provision, the invoicing time is the time of payment (excluding cases where payment is made as a deposit or advance to ensure the execution of service contracts such as accounting, auditing, financial consulting, tax consultation; valuation; surveying, technical designing; supervision consulting; and the preparation of construction investment projects).

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Based on the above regulation, the invoicing time for office leasing services is the time when the service is completed, irrespective of whether payment is received. If the office leasing service provider collects payment in advance or during the service provision, the invoicing time is the time of payment.

When is the invoicing time for office leasing contracts in Vietnam? (Image from the Internet)

How to handle erroneous invoices in Vietnam?

According to Article 19 of Decree 123/2020/ND-CP, specific regulations on handling erroneous invoices are as follows:

- In cases where the seller discovers that an e-invoice that has been issued with a tax authority code but not yet sent to the buyer contains errors, the seller shall notify the tax authority with Form No. 04/SS-HDDT Appendix IA issued with Decree 123/2020/ND-CP regarding the cancellation of the error-coded e-invoice and issue a new e-invoice, digitally sign it, and send it to the tax authority for a new invoice code to replace the erroneous one for the buyer. The tax authority shall cancel the error-coded e-invoice stored in the tax authority's system.

- In cases where an e-invoice with a tax authority code or an e-invoice without a tax authority code sent to the buyer contains errors and is discovered by either the buyer or the seller, the resolution is as follows:

- If there are errors in the name and address of the buyer but not in the tax code, and other contents are accurate, the seller informs the buyer about the errors on the invoice and does not need to issue a new invoice. The seller notifies the tax authority of the e-invoice error with Form No. 04/SS-HDDT Appendix IA issued with Decree 123/2020/ND-CP, except for cases where the e-invoice without a tax authority code with the aforementioned errors has not been reported to the tax authority.

+ In case of errors in: tax code; amounts on the invoice, tax rate, tax amount, or goods listed on the invoice not meeting specifications or quality, one can choose between two methods of using e-invoices:

++ The seller issues an e-invoice to correct the erroneous invoice. If there is an agreement between the seller and the buyer to draft an agreement document before issuing a corrective invoice for the erroneous invoice, both parties draft an agreement document detailing the errors, thereafter the seller issues an e-invoice to correct the erroneous one.

++ The corrective e-invoice for a previously issued erroneous e-invoice must have a line stating “Correction for invoice Form No... symbol... number... date... month... year”.

++ The seller issues a new e-invoice to replace the erroneous one unless the seller and the buyer agree to draft an agreement document before issuing a replacement invoice for the erroneous one, in which case, both parties draft an agreement document detailing the errors, thereafter the seller issues a new e-invoice to replace the erroneous one.

++ The replacement e-invoice for a previously issued erroneous e-invoice must have a line stating “Replacement for invoice Form No... symbol... number... date... month... year”.

++ The seller digitally signs the new corrective or replacement e-invoice for the erroneous one, then sends it to the buyer (for e-invoices without a tax authority code) or to the tax authority for the issuance of a new code for the e-invoice to be sent to the buyer (for e-invoices with a tax authority code).

+ For the airline industry, exchange or refund invoices for air transport documents are considered corrective invoices without needing the information “Increase/decrease adjustment for invoice Form No... symbol... date... month... year”. Airline carriers are allowed to issue their invoices for cases of refunds or exchanges of transport documents issued by agents.

- If the tax authority discovers that an e-invoice with a tax authority code or an e-invoice without a tax authority code contains errors, the tax authority shall notify the seller according to Form No. 01/TB-RSDT Appendix IB issued with Decree 123/2020/ND-CP for the seller to verify the errors.

- Within the notification period stated in Form No. 01/TB-RSDT Appendix IB, the seller shall notify the tax authority using Form No. 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP regarding the verification of erroneous invoices.

- If the seller fails to notify the tax authority within the notification period stated in Form No. 01/TB-RSDT Appendix IB, the tax authority will issue a second notification to the seller using Form No. 01/TB-RSDT Appendix IB. If there is no notification beyond the second notification period stated in Form No. 01/TB-RSDT Appendix IB, the tax authority will consider transitioning to an e-invoice usage review.

- Within one business day, the tax authority informs about the receipt and processing results. The canceled e-invoice is no longer valid for use but remains stored for reference purposes.

Form No. 04/SS-HDDT.....download

Form No. 01/TB-RSDT.....download

Is failing to issue invoices when selling goods or services considered tax evasion in Vietnam?

Based on Clause 3, Article 143 of the Law on Tax Administration 2019, specific regulations on tax evasion acts are as follows:

Tax Evasion Acts

1. Failing to submit taxpayer registration dossiers; failing to submit tax declaration dossiers; submitting tax declaration dossiers more than 90 days after the deadline for filing tax declarations or the extended deadline, as prescribed by this Law.

2. Failing to record accounting books for income related to the determination of the taxable amount.

3. failing to issue invoices when selling goods or services according to legal regulations or recording a lower value on the sales invoice than the actual payment value for the goods or services sold.

4. Using illegal invoices or documents, or unlawfully using invoices for accounting input materials in operations resulting in tax obligations, reducing the payable tax amount or increasing the exempted, reduced, or deducted tax amount; the refundable or non-payable tax amount.

5. Using documents or records that do not accurately reflect the nature of transactions or actual transaction value, resulting in errors in determining the payable tax amount, exempted, reduced, or refundable tax amount, or non-payable tax amount.

6. erroneously declaring export or import goods without supplementing the tax declaration dossier after the goods have been cleared.

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Based on the above regulation, failing to issue invoices when selling goods or services is considered a tax evasion act.