Guidance on Issuing Electronic Invoices When the Contractor of the Company is Temporarily Suspended but Has Not Completed the Tax Code Cancellation Procedures
When is the time for making invoices for construction and installation activities?
According to Point c Clause 4 Article 9 of Decree 123/2020/ND-CP prescribing the time for making invoices as follows:
Time for making invoices
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4. The time for making invoices for certain specific cases is as follows:
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c) For construction and installation activities, the time for making invoices is the time of acceptance and handover of the completed project, work items, or construction and installation volume, regardless of whether payment has been received or not.
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Thus, according to the regulations, the time for making invoices for construction and installation activities is the time of acceptance and handover of the completed project, work items, or construction and installation volume, regardless of whether payment has been received or not.
Guidance on making electronic invoices when a contractor of the Company is temporarily suspended but has not yet completed the tax code cancellation procedure. (Image from the Internet)
How to make invoices if the contractor of the Company is temporarily suspended but has not yet completed the tax code cancellation procedure?
Based on the provisions of Article 13 of Decree 123/2020/ND-CP, the regulations are as follows:
Application of electronic invoices when selling goods or providing services
1. Subjects applying electronic invoices comply with the provisions of Article 91 of the Law on Tax Administration No. 38/2019/QH14, except for high-risk tax cases in accordance with the regulations of the Minister of Finance.
2. Regulations on issuance and declaration of tax obligations when the tax authority issues electronic invoices with the tax authority's code for each arising occasion as follows:
a) Types of invoices issued for each arising occasion
a.1) Issuance of electronic invoices with the tax authority's code for each arising occasion is a sales invoice in the following cases:
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a.2) Issuance of electronic invoices with the tax authority's code for each arising occasion is a value-added tax invoice in the following cases:
- Enterprises, economic organizations, and other organizations subject to value-added tax according to the deduction method in the following cases:
+ Temporarily suspend business activities but have not yet completed the procedure for terminating the validity of the tax code, with asset liquidation arising requiring an invoice to be provided to the buyer;
+ Temporarily suspend business activities but need an invoice to be provided to customers for the execution of contracts signed before the tax authority's notice of temporary suspension of business activities;
+ Being enforced by the tax authority using the measure of stopping the use of invoices.
- Organizations and state agencies not subject to value-added tax according to the deduction method, having asset auctions, in cases where the auction price is the selling price including value-added tax clearly announced in the auction documents approved by the competent authority, are issued value-added tax invoices to give to the buyer.
b) Enterprises, economic organizations, and other organizations, households, and individuals conducting business subject to the issuance of electronic invoices with the tax authority's code for each arising occasion send an application for issuance of electronic invoices with the tax authority's code according to Form No. 06/DN-PSDT Appendix IA attached to this Decree to the tax authority and access the electronic invoice issuance system of the tax authority to make electronic invoices.
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In Official Dispatch 46904/CTHN-TTHT in 2022, the Hanoi Tax Department provides guidance as follows:
In the case where the contractor of the Company is temporarily suspended but has not yet completed the tax code cancellation procedure, an invoice is needed to be provided to customers for the execution of contracts signed before the tax authority’s notice of temporary suspension of business activities. In such cases, the contractor will send an application for issuance of electronic invoices with the tax authority's code according to Form No. 06/DN-PSDT Appendix IA attached to this Decree to the tax authority and access the electronic invoice issuance system of the tax authority to make electronic invoices in accordance with the provisions of Article 13 of Decree 123/2020/ND-CP.
How to handle electronic invoices when the buyer or seller discovers errors in the amount stated on the invoice?
According to the provisions at Point b Clause 2 Article 19 of Decree 123/2020/ND-CP, the regulations are as follows:
Handling invoices with errors
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2. In the event that the electronic invoice with the tax authority's code or the electronic invoice without the tax authority's code has been sent to the buyer, but the buyer or seller discovers errors, the handling is as follows:
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b) In case of errors: taxpayer identification number; errors in the amount stated on the invoice, tax rate, tax amount, or incorrect specifications or quality of goods stated on the invoice, one of the two methods of using electronic invoices can be chosen:
b1) The seller issues an adjusted electronic invoice for the incorrect invoice. If the seller and buyer agree to create a written agreement before issuing an adjusted invoice for the incorrect invoice, the seller and buyer sign a written agreement stating the errors, thereafter the seller issues an adjusted electronic invoice for the incorrect invoice.
The adjusted electronic invoice for the incorrectly issued electronic invoice must have the line "Adjusted for invoice form No... symbol... number... dated... month... year".
b2) The seller issues a new electronic invoice to replace the incorrect electronic invoice, except where the seller and buyer agree to create a written agreement before issuing the replacement invoice for the incorrect invoice, the seller and buyer sign a written agreement stating the errors, thereafter the seller issues a new electronic invoice to replace the incorrectly issued invoice.
The new electronic invoice replacing the incorrect electronic invoice must have the line "Replaced for invoice form No... symbol... number... dated... month... year".
The seller signs the new adjusted or replaced electronic invoice for the incorrect electronic invoice, then sends it to the buyer (for invoices not coded by the tax authority) or sends it to the tax authority to be coded by the tax authority and then sends it to the buyer (for invoices coded by the tax authority).
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In Official Dispatch 46904/CTHN-TTHT in 2022, the Hanoi Tax Department provides guidance as follows:
In the case of electronic invoices with the tax authority's code or electronic invoices without the tax authority's code that have been sent to the buyer, but the buyer or seller discovers errors in the amount stated on the invoice, one of the two methods of using electronic invoices can be chosen according to the provisions at Point b Clause 2 Article 19 of Decree 123/2020/ND-CP.
For detailed content, see Official Dispatch 46904/CTHN-TTHT in 2022
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