Instructions on how to handle invoices with errors in Vietnam: In case of a reduction in the selling price, what should the seller do with the invoice with the previous selling price?
How to handle invoices in Vietnam with errors in the price stated on the invoice?
According to Article 19 of Decree No. 123/2020/ND-CP stipulating the handling of incorrect invoices in Vietnam as follows:
“Article 19. Handling of invoices with errors
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b) In case there is wrong: tax code; If there is an error about the amount written on the invoice, wrong about the tax rate, tax amount, or the goods listed on the invoice are not "conforming with the specifications and quality", then you can choose one of two ways to use the electronic invoice as follows:
b1) The e-invoicing seller corrects the erroneous invoice. In case the seller and the buyer have agreed on the making of a written agreement before issuing an invoice to correct errors in the issued invoice, the seller and the buyer shall make a written agreement clearly stating the error, then e-invoicing seller corrects errors in the invoice.
E-invoices for adjustment of issued e-invoices with errors must have the words "Adjustment for invoices Model No.... symbol... number... date... month...".
b2) The seller shall issue a new e-invoice to replace the erroneous e-invoice, unless the seller and the buyer have agreed to make a written agreement before issuing a replacement invoice for the invoice already made. If there is an error, the seller and the buyer make a written agreement specifying the error, and then the seller issues an electronic invoice to replace the incorrect invoice.
New e-invoices replacing the e-invoices that have been made with errors must contain the words “Replace the invoice Model No.... symbol... number... date... month... year" .
The seller digitally signs on the new adjusted or replaced e-invoice for the wrongly prepared e-invoice, then the seller sends it to the buyer (for the case of using an e-invoice without the agency's code). tax) or send it to the tax authority for the tax authority to issue a code for a new e-invoice to send to the buyer (for the case of using an e-invoice with a tax authority's code)..."
In Clause 6, Article 12 of Circular No. 78/2021/TT-BTC on transitional handling:
"Article 12. Transition handling
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6. From the time when businesses, organizations, households and individuals use e-invoices according to the provisions of Decree No. 123/2020/ND-CP and this Circular, if any chemical is detected The application has been made according to the provisions of Decree No. 51/2010/ND-CP dated May 14, 2010, Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government and guiding documents of the Government. If there is an error in this invoice, the seller and the buyer must make a written agreement clearly stating the error, the seller shall notify the tax authority according to Form No. 04/SS-HDDT issued together with Decree No. 04/SS-HDDT. 123/2010/ND-CP and issue new e-invoices.. (e-invoices with tax authority's code or e-invoices without code) The replacement box for the issued invoice is incorrect. omission. E-invoices to replace issued invoices with 01 */ error must have the words "Replace the invoice Model No.... symbol... number... date... month... year" . The seller signs on the new e-invoice to replace the issued invoice = there is an error (the invoice is made according to Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP of the Government and guiding documents of the Ministry of Finance) to send to the buyer (for the case of using e-invoices without a code) or the seller to send to the tax authority to be granted a code for an e-invoice to replace the invoice prepared (for the case of using an electronic invoice with the tax authority's code)."
Instructions on how to handle invoices with errors in Vietnam: In case of a reduction in the selling price, what should the seller do with the invoice with the previous selling price?
The invoice has been made with the selling price which is the provisional price at the time of signing the contract, then what should the seller do to reduce the selling price?
According to Official Dispatch 25024/CTHN-TTHT 2022 of the Hanoi Tax Department, replying to the case where the invoice in Vietnam has been issued with the selling price being the provisional price at the time of signing the contract, then a reduction in the selling price is incurred as follows:
- In case the invoice has been made (according to Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP of the Government and guiding documents of the Ministry of Finance) with the selling price being the temporary price calculated at the time of signing the contract, then a reduction in the selling price arises, the seller and the buyer must make a written agreement clearly stating the error, the seller shall notify the tax authority and issue a new electronic invoice (invoice). e-invoices with a tax authority's code or an e-invoice without a code) replace an incorrect invoice. An electronic invoice that replaces an incorrect invoice must have the words "Replace the invoice Model No.... symbol... number... date... month...".
- The seller signs digitally on the new e-invoice to replace the issued invoice with errors (invoices in Vietnam made according to Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP of the Government and guiding documents of the Ministry of Finance) to send to the buyer (for the case of using e-invoices without a code) or the seller to send to the tax authority to be granted a code for an e-invoice to replace the invoice have made (for the case of using an electronic invoice with a tax authority's code) according to the guidance in Clause 6, Article 12 of Circular 78/2001/TT-BTC dated September 17, 2021 of the Ministry of Finance mentioned above,
- The seller must issue an invoice and deliver to the buyer for the additional goods (corresponding to the reduced adjusted selling price) according to the provisions of Article 4 of Decree No. 123/2020/ND-CP in principle. Invoice as follows:
+ When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases of goods and services used for promotion, advertising, sample goods; goods and services). used for giving, giving, giving, exchanging, paying for employees' wages and for internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of loans, lending or returning goods) and must fully record the contents as prescribed in Article 10 of this Decree. In case of using e-invoices, it must follow the standard data format of the tax authorities as prescribed in Article 10 of this Decree. 12 of this Decree.
- In case the Company discovers that the tax declaration dossier submitted to the tax authority has errors or omissions, the Company shall make additional declarations according to the provisions of Article 47 of the Law on Tax Administration No. 38/2014/QH14 and Clause 4, Article 7. Decree No. 126/2020/ND-CP above.
Thus, in case an invoice has been issued with the selling price being the provisional price at the time of signing the contract and then a reduction in the selling price is incurred, the seller and the buyer must make a written agreement clearly stating the error, the seller shall perform notify the tax authority and issue a new electronic invoice to replace the incorrect invoices in Vietnam.
In case the Company discovers that the tax declaration dossiers submitted to the tax authorities are incorrect, how does the company make additional declarations?
According to Article 47 of the Law on Tax Administration 2014, the additional declaration of tax declaration dossiers is as follows:
"Article 47. Additional declaration of tax return
1. Taxpayers who discover that the tax declaration dossiers submitted to the tax authorities are incorrect or erroneous may additionally declare the tax declaration dossiers within 10 years from the expiration of the tax period submission deadline. there are errors or omissions, but before the tax authorities, the competent agencies announce the inspection and examination decisions.
2. When the tax authority or the competent authority has announced the tax inspection and examination decision at the taxpayer's office, the taxpayer is still entitled to additionally declare the tax return; tax authorities shall impose penalties for administrative violations of tax administration for the acts specified in Articles 142 and 143 of this Law.
3. After the tax authority or the competent authority has issued the conclusion and decision on tax handling after the inspection and examination at the taxpayer's office, the additional declaration of tax declaration dossiers is prescribed. as follows:
a) Taxpayers are entitled to additionally declare tax declaration dossiers in case of increasing the payable tax amount, reducing the deductible tax amount or reducing the exempted, reduced or refunded tax amount and are sanctioned for administrative violations. main tax administration for the acts specified in Articles 142 and 143 of this Law;
b) In case the taxpayer discovers that the tax declaration dossier contains errors or omissions, if additional declarations reduce the payable tax amount or increase the deductible tax amount, or increase the exempted, reduced or refunded tax amounts, the comply with regulations on settlement of tax complaints.
4. Dossier for additional declaration of tax return includes:
a) Additional declaration;
b) An explanation of the additional declaration and relevant documents.
5. For imported and exported goods, the additional declaration of tax declaration dossiers shall comply with the provisions of the law on customs."
In Clause 4, Article 7 of Decree 126/2020/ND-CP, the additional tax declaration dossiers are as follows:
"Article 7. Tax declaration dossiers
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4. Taxpayers may submit additional declarations for each tax return with errors or omissions according to the provisions of Article 47 of the Law on Tax Administration and according to the form prescribed by the Minister of Finance. Taxpayers make additional declarations as follows:
a) If the additional declaration does not change the tax liability, only the explanation of the additional declaration and relevant documents must be submitted, the additional declaration is not required.
In case the annual tax finalization declaration has not yet been submitted, the taxpayer shall make additional declarations in the monthly and quarterly tax declaration dossiers with errors or omissions, and concurrently synthesize additional declaration data into the annual tax finalization declaration dossier.
If the annual tax finalization declaration has been submitted, only the annual tax finalization declaration shall be additionally declared; Particularly, in case of additional declaration of personal income tax finalization declaration for organizations and individuals paying incomes from salaries and wages, they must also make additional declarations of monthly and quarterly declarations with corresponding errors or omissions.
b) If the taxpayer makes additional declarations leading to an increase in the payable tax amount or a decrease in the tax refunded by the state budget, he/she must fully pay the additional payable tax amount or the overpaid tax amount and the late payment interest. into the state budget (if any).
In case the additional declaration only increases or decreases the value-added tax amount that is still deductible to the next period, it must be declared in the current tax period. Taxpayers are only allowed to make additional declarations to increase the amount of value-added tax requested for refund when they have not submitted the tax return for the next tax period and have not submitted the application for tax refund."
Thus, in case the Company discovers that the tax declaration dossiers submitted to the tax authorities have errors or omissions, the Company shall make additional declarations according to the above provisions.
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