Vietnam: Instructions on how to declare value-added tax for e-invoices with the invoicing date different from the signing date?
What are legal invoices or records in Vietnam?
According to the provisions of Clause 7 Article 3 of Decree No. 123/2020/ND-CP on legal invoices or records in Vietnam as follows:
Definitions
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7. “legal invoice or record” means an invoice or record whose format and contents are correct and adequate as prescribed herein.
Thus, according to regulations, “legal invoice or record” means an invoice or record whose format and contents are correct and adequate as prescribed herein.
Vietnam: Instructions on how to declare value-added tax for e-invoices with the invoicing date different from the signing date? (Image from the Internet)
Instructions on how to declare value-added tax for e-invoices with the invoicing date different from the signing date?
According to Clause 1, Article 4 of Decree No. 123/2020/ND-CP stipulating the rules for issuance, management and use of invoices and records in Vietnam as follows:
Rules for issuance, management and use of invoices and records in Vietnam
1. When selling goods or providing services, the seller shall issue and send invoices to buyers (including goods/services used for sales promotion, advertising or as samples, goods/services gifted, donated, exchanged or used as salary payment to employees and internal use (except goods which are internally rotated in production process), and goods rented, lent or returned). Such invoices shall have adequate contents written according to the provisions in Article 10 hereof, except e-invoices which must follow the standard format prescribed by tax authorities as prescribed in Article 12 hereof.
Thus, according to regulations, when selling goods or providing services, the seller shall issue and send invoices to buyers (including goods/services used for sales promotion, advertising or as samples, goods/services gifted, donated, exchanged or used as salary payment to employees and internal use (except goods which are internally rotated in production process), and goods rented, lent or returned). Such invoices shall have adequate contents written according to the provisions in Article 10 hereof, except e-invoices which must follow the standard format prescribed by tax authorities as prescribed in Article 12 hereof.
In addition, Article 9 of Decree No. 123/2020/ND-CP stipulates the invoicing time as follows:
Invoicing time
1. Invoices for sale of goods (including the sale of state-owned property, property confiscated and put into state fund, and the sale of national reserve goods) shall be issued when the right to own or use goods is transferred to buys, whether the payment of the invoiced amount is made or not.
2. Invoices for provision of services shall be issued upon completion of the provision of services, whether the payment of the invoiced amount is made or not. In case a service is provided with payments collected in advanced or during the provision of that service, an invoice shall be issued when each payment is collected (excluding payments of deposited amounts or advance payments which are made to ensure the execution of contracts for provision of accounting, audit, financial consulting or taxation services; valuation services; technical survey and design services; supervision consulting services; investment construction project formulation services).
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Besides, Clause 9 Article 10 of Decree No. 123/2020/ND-CP stipulates as follows:
Contents of invoices
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9. The date of the digital signature on an e-invoice is the date on which the seller or buyer adds his/her digital signature to that e-invoice and expressed in "ngày, tháng, năm” (day/month/year) format of the calendar year. If the date of a digital signature on an issued e-invoice is different from the issuance date of the e-invoice, the tax declaration date shall be the issuance date of that e-invoice.
In Official Dispatch No. 47147/CTHN-TTHT in 2022, the Hanoi City Tax Department guides the declaration of value-added tax for e-invoices with the invoicing date different from the signing date as follows:
In case the Bank applies e-invoices according to the provisions of Decree No. 123/2020/ND-CP, the time of e-invoicing shall comply with the provisions of Article 9 of Decree No. 123/2020/ND-CP. E-invoices must ensure full content (including the seller's electronic signature) as prescribed in Article 10 of Decree No. 123/2020/ND-CP. In case the e-invoice has been issued with a different time of digital signature on the invoice, the time of tax declaration is the time of invoice creation as guided in Clause 9 Article 10 of Decree No. 123/2020/ND-CP.
When is the time for calculating VAT in Vietnam?
According to Article 8 of Circular No. 219/2013/TT-BTC stipulating the time for calculating VAT in Vietnam as follows:
Time for calculating VAT
1. For goods sale, VAT shall be calculated when the ownership or the right to use goods is transferred to the buyer, whether the payment is made or not.
2. For service provision, VAT shall be calculated when service provision is completed or when the invoice for service provision is made, whether the payment is made or not.
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Thus, according to regulations, the time for calculating VAT in Vietnam:
- For goods sale, VAT shall be calculated when the ownership or the right to use goods is transferred to the buyer, whether the payment is made or not.
- For service provision, VAT shall be calculated when service provision is completed or when the invoice for service provision is made, whether the payment is made or not.
See detailed content of Official Dispatch No. 47147/CTHN-TTHT in 2022, issued by Hanoi City Tax Department, guiding the declaration of value-added tax for e-invoices with the invoicing date different from the signing date.
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