When is the invoicing time for service provision in Vietnam? How to handle erroneous invoices in Vietnam?

When is the invoicing time for service provision in Vietnam?

Pursuant to Clause 2, Article 9 of Decree 123/2020/ND-CP, there are specific provisions regarding the invoicing time as follows:

invoicing time

1. The invoicing time for selling goods (including the sale of state assets, seized assets for state collection, and the sale of national reserve goods) is at the time of transferring ownership or the right to use goods to the buyer, regardless of whether the payment has been received or not.

2. The invoicing time for service provision is at the time of completing the service provision, regardless of whether the payment has been received or not. In cases where the service provider collects money before or during service provision, the invoicing time is at the time of receiving the payment (excluding cases of deposit or advance payment to ensure the execution of service contracts: accounting, auditing, financial, tax consultancy; valuation; survey, technical design; supervision consultancy; project investment establishment).

3. In cases of multiple deliveries or handing over individual components of the service, an invoice must be issued for each delivery or handover corresponding to the volume and value of goods or services delivered.

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Thus, according to the above regulations, the time for issuing an invoice for service provision is at the time of completing the service provision, regardless of whether the payment has been collected or not.

When is the invoicing time for service provision in Vietnam? How to handle erroneous invoices in Vietnam? (Image from the Internet)

How to handle a erroneous invoice in Vietnam?

According to Article 19 of Decree 123/2020/ND-CP, the handling of erroneous invoices is specifically regulated as follows:

- In cases where the seller detects a erroneous electronic invoice with a tax authority's code that has not yet been sent to the buyer, the seller shall notify the tax authority using Form No. 04/SS-HDDT Appendix IA issued with Decree 123/2020/ND-CP about canceling the erroneous coded electronic invoice and issue a new electronic invoice, digitally sign and send it to the tax authority for a new invoice code to replace the issued invoice and send it to the buyer. The tax authority will cancel the incorrect electronic invoice code stored in the tax authority’s system.

- In cases where an electronic invoice with a tax authority's code or without a tax authority’s code has been sent to the buyer and the buyer or seller detects a fault, the handling is as follows:

- If there is an error in the buyer's name or address but the tax code and other contents are correct, the seller shall notify the buyer about the erroneous invoice without reissuing it. The seller shall inform the tax authority about the erroneous electronic invoice according to Form No. 04/SS-HDDT Appendix IA issued with Decree 123/2020/ND-CP, except for cases where the uncoded electronic invoice with the mentioned error has not yet been sent to the tax authority.

+ In case there is a mistake: tax code; error in the amount on the invoice, incorrect tax rate, tax or the goods on the invoice do not meet specifications, quality, one of the following two options can be used to handle electronic invoices:

++ The seller issues an electronic invoice to adjust the erroneous invoice. Where the seller and buyer agree to establish a written agreement prior to issuing an adjustment invoice for the erroneous invoice, they shall record the error in a written agreement before the seller issues an adjustment electronic invoice for the erroneous invoice.

++ The electronic invoice adjusting the erroneous invoice must include the phrase “Adjustment for Invoice Template No... symbol... number... date... month... year”.

++ The seller issues a new electronic invoice to replace the erroneous electronic invoice, except where the seller and buyer agree to establish a written agreement before issuing a replacement invoice for the erroneous invoice, after which the seller issues a new electronic invoice to replace the erroneous invoice.

++ A new electronic invoice replacing the issued erroneous electronic invoice must include the phrase “Replace for Invoice Template No... symbol... number... date... month... year”.

++ The seller digitally signs the new adjusted or replacement electronic invoice for the erroneous invoice and then sends it to the buyer (for cases using electronic invoices without the tax authority's code) or sends it to the tax authority for them to issue a code for the new electronic invoice to send to the buyer (for cases using electronic invoices with the tax authority's code).

+ For the aviation industry, exchanged, refunded air transportation documents are considered adjustment invoices and do not require the phrase “Adjustment increase/decrease for Invoice Template No... symbol... date... month... year”. Airline enterprises are allowed to issue their invoices for cases of refund, exchange of transportation documents issued by the agent.

- In cases where the tax authority detects an electronic invoice with a tax authority's code or without a tax authority’s code which is erroneously issued, the tax authority will notify the seller according to Form No. 01/TB-RSDT Appendix IB issued with Decree 123/2020/ND-CP for the seller to check the error.

- As per the notice period indicated on Form No. 01/TB-RSDT Appendix IB, the seller must notify the tax authority using Form No. 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP about checking the erroneous invoice.

- After the notification period specified on Form No. 01/TB-RSDT Appendix IB, if the seller does not inform the tax authority, the tax authority will continue to give a second notification to the seller using Form No. 01/TB-RSDT Appendix IB. If the seller fails to notify after the second notification period indicated on Form No. 01/TB-RSDT Appendix IB, the tax authority will consider switching to inspecting the electronic invoice usage.

- Within one working day, the tax authority informs about the receipt and the result of handling. The canceled electronic invoice remains unused but will be stored for reference purposes.

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

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

What are requirements for authenticated e-invoices in Vietnam?

According to Clause 2, Article 17 of Decree 123/2020/ND-CP, authenticated e-invoice must satisfy the following requirements:

- Full contents about the electronic invoice as regulated in Article 10 of Decree 123/2020/ND-CP.

- Correct format of the electronic invoice as regulated in Article 12 of Decree 123/2020/ND-CP.

- Correct registration information as regulated in Article 15 of Decree 123/2020/ND-CP.

- Not falling into the case of ceasing the use of electronic invoices with a tax authority's code as regulated in Clause 1, Article 16 of Decree 123/2020/ND-CP.