Vietnam: If the retailer has not yet met the facilities to use e-invoices, can they continue to buy invoices from the tax authorities?
Can retailers in Ho Chi Minh City Vietnam not yet met the facilities to use e-invoices continue to buy invoices from tax authorities?
Pursuant to Article 12 of Circular 78/2021/TT-BTC of Vietnam on transitional handling:
"Article 12. Transition
1. Enterprises and business entities that have informed the issue of externally-printed invoices or internally-printed invoices, unauthenticated e-invoices or have applied for use of authenticated e-invoices, or have purchased invoices from tax authorities before the effective date of this Circular are allowed to continue using these invoices from the date of promulgation of this Circular to June 30, 2022 inclusively, and following invoice-related procedures as provided for in the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014.
From the date of promulgation of this Circular to June 30, 2022 inclusively, at the request of the General Department of Taxation, the business establishments in areas that meet infrastructure requirements for use of e-invoices according to the Ministry of Finance’s Decision shall use e-invoices in accordance with regulations of this Circular according to the roadmap notified by tax authorities. The business establishments that do not meet IT infrastructure requirements and continue using invoices in the abovementioned forms shall send invoice data to tax authorities using Form No. 03/DL-HDDT in Appendix IA enclosed with Decree No. 123/2020/ND-CP when they submit VAT returns. Tax authorities shall include received invoice data from these business establishments into invoice database and publish them on the website of the General Department of Taxation to serve invoice data searching.
2. Business establishments that are established within the period from the date of promulgation of this Circular to June 30, 2022 inclusively shall follow guidelines given by tax authorities to use e-invoices in accordance with the provisions of Decree No. 123/2020/ND-CP, Decree No. 119/2018/ND-CP dated September 12, 2018, Circular No. 68/2019/TT-BTC and this Circular. If they fail to meet IT infrastructure requirements and continue to use invoices in accordance with Decree No. 51/2010/ND-CP dated May 14, 2010 and Decree No. 04/2014/ND-CP dated January 17, 2014, they shall comply with the provisions in Clause 1 of this Article.
3. Tax authorities may sell their externally-printed invoices as prescribed in Decree No. 51/2010/ND-CP dated May 14, 2010 and Decree No. 04/2014/ND-CP dated January 17, 2014 to eligible buyers from July 01, 2022 as prescribed in Article 23 of Decree No. 123/2020/ND-CP if form numbers and reference numbers of these invoices comply with regulations of this Circular and their contents comply with regulations of Decree No. 123/2020/ND-CP.
4. Fee and charge receipts made using the Form provided in Circular No. 303/2016/TT-BTC dated November 15, 2016 of the Ministry of Finance of Vietnam and tax receipts printed according to Decision No. 30/2001/QD-BTC dated April 13, 2001 of the Ministry of Finance of Vietnam may continue to be used. After these receipts have been used up, the receipt form provided in Decree No. 11/2020/ND-CP dated January 20, 2020 shall be used. When receiving notifications from tax authorities of use of e-receipts in the format prescribed by tax authorities, relevant organizations shall carry out conversion, and apply for use, notify issuance, and submit reports as prescribed in Article 34, Article 36, Article 38 of Decree No. 123/2020/ND-CP.
5. Personal income tax (PIT) deduction documents shall continue to be used in accordance with Circular No. 37/2010/TT-BTC dated March 18, 2010 of the Ministry of Finance of Vietnam (and its amending documents) and Decision No. 102/2008/QD-BTC dated November 12, 2008 of the Minister of Finance until the end of June 30, 2022. Organizations deducting PIT that meet IT infrastructure requirements may use electronic PIT deduction documents as prescribed in Decree No. 123/2020/ND-CP dated July 01, 2022 and follow procedures as prescribed in the Circular No. 37/2010/TT-BTC dated March 18, 2010 of the Ministry of Finance of Vietnam.
6. Since enterprises, organizations, household and individual businesses use e-invoices as prescribed in Decree No. 123/2020/ND-CP and this Circular, if any invoice issued according to Decree No. 51/2010/ND-CP dated May 14, 2010, Decree No. 04/2014/ND-CP dated January 17, 2014 and guiding documents given by the Ministry of Finance of Vietnam is found erroneous, the seller and the buyer shall enter into an agreement indicating errors, and the seller shall give notification to the tax authority using Form No. 04/SS-HDDT enclosed with Decree No. 123/2020/ND-CP and issue a new e-invoice (either authenticated or unauthenticated e-invoice) to replace the erroneous invoice. The replacing invoice shall bear the text “Thay thế cho hóa đơn ký hiệu mẫu số, ký hiệu hóa đơn …số hóa đơn..., ngày... tháng... năm” (“This replaces invoice No. … dated … "). The seller shall add its digital signature on the new invoice which is issued to replace the erroneous one (which is issued according to Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP and guiding documents given by the Ministry of Finance of Vietnam), and then send it to the buyer (in case of unauthenticated invoices) or send it to the tax authority for its issuance of a new authentication code (in case of authenticated invoices).
7. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Finance of Vietnam for consideration./.”
Thus, for the Ho Chi Minh City area, if the retailer has met the conditions for facilities to deploy e-invoices according to Decision 1832 of the Ministry of Finance of Vietnam from November 2021, business establishments are responsible for converting to applying e-invoices according to regulations in Circular 78/2021/TT-BTC of Vietnam according to the schedule announced by tax authorities.
Therefore, business individuals and business households (stores) need to prepare conditions for information infrastructure, including computers/smart devices (smartphones, tablets) that can connect to the internet, signatures number, and electronic invoicing software to actively convert and apply electronic invoices with codes of Tax Department.
Vietnam: If the retailer has not yet met the facilities to use e-invoices, can they continue to buy invoices from the tax authorities?
In which cases can I continue to use purchase invoices from tax authorities in Vietnam?
According to Question 21 Handbook on electronic invoices No. 2 of Ho Chi Minh City Tax Department of Vietnam, guidance on large-scale business households is:
- In case the tax authority has notified the business establishment (including business households and individuals) to switch to using e-invoices, but the business establishment has not yet met the requirements for information technology infrastructure, the store may request the tax authority to continue using the invoices purchased from the tax authorities and must report on the use of invoices as prescribed, and must send invoice data to the tax authorities according to the regulations in form 03/DL-HDDT issued together with Appendix 1A of Decree 123/2020/ND-CP.
- Business households and individuals must have a solution to convert to using e-invoices according to regulations.
How to declare data of invoices and documents of goods and services sold (Form 03/DL-HDDT) in Vietnam?
According to Appendix 1A issued with Decree 123/2020/ND-CP:
Download the form: here
LawNet
