When shall invoices for provision of services with payments collected in advanced be issued in Vietnam?

When shall invoices for provision of services with payments collected in advanced be issued in Vietnam?

Based on Article 9 of Decree 123/2020/ND-CP, the regulation is as follows:

Time of Invoice Issuance

1. The time of invoice issuance for the sale of goods (including state assets, confiscated assets, national reserve goods) is when the ownership or the right to use the goods is transferred to the buyer, regardless of whether money has been collected or not.

2. The time of invoice issuance for providing services is at the time of completing the provision of services, regardless of whether money has been collected. If the service provider collects money in advance or during service provision, the time of invoice issuance is the time of collection (excluding cases of deposit or advance payment to secure the performance of services: accounting, auditing, financial consulting, tax consulting; appraisal; surveying, technical design; monitoring consulting; project investment construction).

3. In cases of multiple deliveries or handovers of service items or stages, an invoice must be issued for each delivery or handover corresponding to the quantity and value of goods or services delivered.

4. The time of invoice issuance for specific cases is as follows:

a) For cases involving the provision of services in large quantities, frequently occurring, requiring time for data reconciliation between service providers and customers, partners, such as providing direct support services for air transport, supplying aviation fuel to airlines, the provision of electricity (excluding subjects specified at point h of this clause), water, television services, postal delivery services (including agency services, fee collection services), telecommunications services (including value-added telecommunications services), logistics services, information technology services (excluding cases specified at point b of this clause) which are sold per a defined period, the invoice issuance time is at the time of completing the data reconciliation between the parties but not later than the 7th of the following month after the month of service provision or not more than 7 days from the end of the period. The agreed period serves as the basis for calculating the quantity of goods or services provided, based on the agreement between the service selling unit and the buyer.

b) For telecommunications services (including value-added telecommunications services), information technology services (including intermediary payment services based on telecommunications platforms, information technology), requiring data reconciliation between service business establishments, the invoice issuance time is the time when the reconciliation of the service fee data is completed per a commercial agreement between the service businesses, but not later than 2 months from the month the connected service fee arises.

In case of providing telecommunications services (including value-added telecommunications services) through selling pre-paid cards, collecting connection fees when customers register to use the service, and the customer does not request a VAT invoice or does not provide a name, address, or tax code, by the end of each day or periodically on a monthly basis, the service business establishment shall consolidate and issue a VAT invoice recording the total revenue generated according to each service where the buyer does not take the invoice or does not provide a name, address, or tax code.

c) In construction, installation activities, the time of invoice issuance is the time of acceptance and handover of works, items, completed construction or installation volumes, regardless of whether payment has been received.

d) For real estate business organizations, constructing infrastructure, housing for sale, transfer:

d.1) In case the transfer of ownership, the right of use has not occurred: Payment is collected following project progress or payment progress recorded in the contract, the invoice issuance time is the collection date or per the payment agreement in the contract.

d.2) In case ownership or the right of use has been transferred: The time of invoice issuance is per the regulations in Clause 1 of this Article.

đ) The time of invoice issuance for cases where business organizations purchase air transportation services online and through e-commerce systems established according to international practices is no later than 5 consecutive days from the date the air transportation service documents are issued in the online and e-commerce systems.

e) For activities related to the search, exploration, exploitation, and processing of crude oil: The time of invoice issuance for the sale of crude oil, condensate, products processed from crude oil (including product consumption activities under the commitment of the Government of Vietnam) is the time when the buyer and seller determine the official selling price, regardless of whether payment has been received.

For the sale of natural gas, associated gas, coal gas transferred via pipeline to the buyer, the time of invoice issuance is when the buyer and seller determine the monthly gas delivery volume but not more than 7 consecutive days from the date the seller sends the notice of monthly gas delivery volume.

In cases where government guarantee agreements and commitments of the Government of Vietnam specify a different invoice issuance time, follow the regulations in the government guarantee agreements and commitments.

g) For retail chain businesses in commercial, catering services operating under a direct-to-consumer model but accounting for all business activities at the headquarters (the headquarters directly signing goods and services purchase and sale contracts; the sales invoice for goods and services from each store is issued to the customer through the point of sale system at each store in the name of the headquarters), if the point of sale system is not yet capable of connecting and transferring data with the tax authorities, each transaction of selling goods, providing catering services has a printed receipt for the customer, and the receipt data is preserved on the system and the customer does not require an e-invoice, by the end of the day, the business establishment compiles the information from the receipt to issue an e-invoice for the day's transactions. If the customer requires the creation of an e-invoice, the business establishment issues an e-invoice to the customer.

h) For electricity sales activities of power generation companies in the electricity market, the e-invoice issuance time is determined based on the transaction and data reconciliation time between the system operator and the electricity market, the power generating unit, and the electricity purchasing unit per the regulations of the Ministry of Industry and Trade or the power purchase agreement approved by the Ministry of Industry and Trade but not later than the last day of the tax declaration, payment deadline for the month in which tax obligations arise under the law on taxes. For electricity sales activities of power generation companies with Government of Vietnam guarantees concerning payment terms, the e-invoice issuance time is based on the government guarantee, guidance and approval by the Ministry of Industry and Trade, and the power purchase agreements signed between the electricity buyer and the seller.

i) The time of e-invoice issuance for the sale of petroleum at retail stores to customers is at the end of the sale transaction for each sale. The seller must ensure full storage of e-invoices for the sale of petroleum to individual non-business customers, individual business customers, and ensure access upon request by competent authorities.

k) For services related to air transportation, insurance services through agents, the invoice issuance time is at the completion of data reconciliation between the parties, but no later than the 10th of the month following the month the service arises.

l) In the case of banking, securities, insurance, money transfer services via e-wallets, services related to electricity disconnection and reconnection provided by electricity distribution entities to non-business individual buyers (or business individuals) without invoice requirements, at the end of the day or month, the entity shall issue a consolidated invoice based on detailed transaction information arising in the day or month from the entity's data management system. The service provider is responsible for transaction information accuracy and provides a detailed service summary when requested by competent authorities. If the customer requests an individual invoice for each transaction, the service provider must issue an invoice to the customer.

m) For passenger transportation services by taxi using a fare calculation software compliant with the law:

- At the end of the trip, enterprises, cooperatives providing passenger transport services by taxi using a fare calculation software are required to send the trip information to the customer and to the tax authorities in the tax authority's data format. The information includes: the name of the transport business unit, vehicle license plate number, trip distance (in km), and the total amount payable by the passenger.

- If the customer requests an e-invoice, the customer must update or provide full information (name, address, tax code) into the software or service provider. Based on the information provided or updated by the customer, enterprises, cooperatives providing passenger transport services by taxi using fare calculation software must issue the trip invoice to the customer and simultaneously transfer invoice data to the tax authorities as stipulated in Article 22 of this Decree.

n) For medical service businesses using patient management software and fee management systems, each patient treatment, and diagnostic service with a printed receipt (for medical fees or examination fees) and data recorded on the information technology system, if the customer (patient) does not request an invoice, then by the end of the day, the medical service provider shall base on patient information and the receipt information to compile and issue an e-invoice for the medical services conducted that day. If the customer requests an e-invoice, the medical service provider shall issue the e-invoice to the customer.

o) For road service fees collected electronically without stopping, the e-invoice issuance date is the date the vehicle passes the toll gate. If the customer uses e-road fee collection services without stopping with one or more vehicles using the service multiple times in a month, the service provider may issue invoices periodically, with the date of the e-invoice issuance being no later than the last day of the month in which the toll service arises. The invoice must detail each trip passing through the toll gates (including the time the vehicle passed the station, road usage fee for each trip).

In cases where the service provider collects money in advance or during service provision, the time of invoice issuance is the time of collection (excluding cases of deposit or advance payments to secure contracts for services like accounting, auditing, financial, tax consulting; appraisal; surveying, technical design; monitoring consultancy; construction investment project formulation).

Thus, according to the above regulation, the time of invoice issuance for service provision with payments collected in advanced is the time of collection.

When shall invoices for provision of services with payments collected in advanced be issued in Vietnam? (Image from the Internet)

What is the specific time for issuing invoices in cases of providing services in large quantities in Vietnam?

Based on Clause 4, Article 9 of Decree 123/2020/ND-CP, the regulation on the time of invoice issuance for specific cases is as follows:

Time of Invoice Issuance

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4. The time of invoice issuance for specific cases is as follows:

a) For cases involving the provision of services in large quantities, frequently arising, requiring time for data reconciliation between service providers and customers, partners such as direct support services for air transport, aviation fuel supply to airlines, the provision of electricity (excluding subjects specified at point h of this clause), water, television services, postal and delivery services (including agency services, fee collection services), telecommunications services (including value-added telecommunications services), logistics services, information technology services (excluding cases specified at point b of this clause), which are sold per a defined period, the invoice issuance time is at the completion of data reconciliation between the parties but no later than the 7th of the following month after the month of service provision or not more than 7 days from the end of the conventional period. The conventional period serves as the basis for calculating the quantity of goods or services provided based on the agreement between the service selling unit and the buyer.

b) For telecommunications services (including value-added telecommunications services), information technology services (including intermediary payment services based on telecommunications and IT platforms) requiring data reconciliation between service business establishments, the invoice issuance time is the time of data reconciliation completion of service charge per a commercial agreement between service businesses, but not later than 2 months from the month the connected service fee arises.

In cases of providing telecommunications services (including value-added telecommunications services) through selling pre-paid cards, collecting connection fees when customers register to use the service without requesting a VAT invoice or providing a name, address, or tax code, by the end of each day or periodically on a monthly basis, the service business establishment shall compile a single VAT invoice recording the total revenue according to each service where the buyer does not take the invoice or does not provide a name, address, or tax code.

c) In construction, installation activities, the invoice issuance time is when the acceptance, handover of works, items, or completed construction or installation volumes, regardless of whether payment has been received.

Thus, the specific time for issuing invoices in cases of providing services in large quantities is at the completion of data reconciliation between the parties but not later than the 7th of the following month after the month of service provision or not more than 7 days from the end of the conventional period.

The conventional period serves as the basis for calculating the quantity of goods or services provided based on the agreement between the selling unit and the buyer.

How much is the penalty for issuing e-invoices at the wrong time in Vietnam?

According to Article 24 of Decree 125/2020/ND-CP, Clause 4, supplemented by Clause 3, Article 1 of Decree 102/2021/ND-CP, stipulates as follows:

Penalties for Violations Regarding Invoice Issuance when Selling Goods and Services

1. Warning penalties for one of the following acts:

a) Issuing invoices not at the correct time but not leading to late tax obligation fulfillment and having mitigating circumstances;

b) Issuing invoices continuously from a lower to a higher number but different books (using a book with a higher serial number and not yet using a book with a lower serial number) and discovering this, the organization or individual cancels the lower serial number books;

c) Issuing the wrong type of invoice as per regulations already given to the buyer or already declared for tax, and the mistake was corrected by issuing the correct type of invoice before the competent authority publicly announces the decision to inspect and audit at the tax payer’s office, not affecting the determination of tax obligations.

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3. A fine ranging from VND 3,000,000 to VND 5,000,000 for issuing invoices not at the correct time but not leading to late tax obligation fulfillment, except for cases specified at Point a, Clause 1 of this Article.

4. A fine ranging from VND 4,000,000 to VND 8,000,000 for one of the following acts:

a) Issuing invoices not at the correct time per the legal regulations on invoices for the sale of goods and services, except for cases specified at Point a, Clause 1, Clause 3 of this Article;

b) Issuing invoices in non-sequential order from lower to higher numbers according to the regulations, except for warning penalties under Point b, Clause 1 of this Article;

c) Issuing invoices with dates before purchasing invoices from the tax authority;

d) Issuing the wrong type of invoice according to regulations on sales invoices and service provision invoices already given to the buyer or already declared for tax, except for warning penalties under Point c, Clause 1 of this Article;

đ) Issuing e-invoices without the tax authority's acceptance notice or before the date the tax authority accepts the use of e-invoices with or without tax authority codes;

e) Issuing invoices for sales of goods and services during a business suspension period, except for issuing invoices to customers to perform contracts signed before the business suspension notification;

g) Issuing e-invoices from cash registers not connected, or transmitting e-data to the tax authority.

h) Issuing invoices without recording all mandatory contents on the invoice as prescribed.

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6. Remedial measure: Forcing the issuance of invoices following regulations for the acts specified at Point d, Clause 4, and Clause 5 of this Article, when the buyer requests.

Thus, issuing invoices not at the correct time may lead to penalties with a maximum fine of up to VND 8 million.

Additionally, other remedial measures may be applied, requiring invoice issuance as per regulations.