Guidance on Issuing Adjustment Invoices in Case the Discount Amount is Issued at the End of the Sales Discount Program (Period)
What are the regulations on the content of invoices applying commercial discounts?
According to Article 10 of Decree 123/2020/ND-CP regarding the content of invoices, the following applies:
Content of the Invoice
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6. Name, unit of measurement, quantity, unit price of goods and services; total amount excluding value-added tax (VAT), VAT rate, total VAT amount by each tax rate, total VAT amount, and total payment amount including VAT.
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d) In case the business entity applies a commercial discount or promotional program according to the legal regulations, the commercial discount or promotional amount must be clearly shown on the invoice. The determination of the taxable price (total amount excluding VAT) in the case of applying commercial discounts or promotional amounts follows the VAT laws and regulations.
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Thus, the content of the invoice applying commercial discounts is regulated as above.
Guidance on issuing adjustment invoices in case the discount amount is issued at the end of the discount program (period)? (Image from the Internet)
What are the regulations for handling invoices with errors?
As specified in Article 19 of Decree 123/2020/ND-CP on handling invoices with errors:
Handling Invoices with Errors
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2. In cases where the e-invoice with a tax authority's code or an e-invoice without a tax authority's code has been sent to the buyer, and either the buyer or the seller detects errors, handling is as follows:
a) In case of an error in the buyer's name or address but not in the tax code, and other details are correct, the seller shall notify the buyer of the error and no new invoice needs to be issued. The seller shall notify the tax authority of the erroneous e-invoice using Form No. 04/SS-HDDT Appendix IA issued with this Decree, except for the case of an e-invoice without a tax authority’s code where the data has not yet been sent to the tax authority.
b) In case of errors related to: tax code; incorrect amounts written on the invoice, tax rates, tax amounts, or incorrect description of goods and services in terms of standards and quality, one of the two following methods can be used for handling the e-invoice:
b1) The seller issues an e-invoice adjusting the erroneous invoice. In case the seller and buyer agree upon issuing an agreement before issuing the adjustment invoice for the erroneous invoice, both parties should write an agreement noting the errors, then the seller issues an e-invoice adjusting the erroneous invoice.
The e-invoice for adjusting the erroneous e-invoice must contain the phrase “Adjustment for invoice form No... symbol... number... date... month... year.”
Based on the provisions in Clause 1, Article 7 of Circular 78/2021/TT-BTC on handling e-invoices and consolidated data of e-invoices sent to the tax authority, the regulations are as follows:
Handling e-invoices and consolidated data of e-invoices sent to the tax authority with errors in certain cases
1. For e-invoices:
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e) Specifically, for errors related to values on invoices: adjustments should be made by increasing (positive sign) or decreasing (negative sign) in line with the actual adjustments.
Thus, handling of erroneous invoices is based on the aforementioned regulations.
Guidance on issuing adjustment invoices in case the discount amount is issued at the end of the discount program (period)?
On September 13, 2022, the Tax Department of Hanoi City issued Official Dispatch 45084/CTHN-TTHT in 2022 guiding on issuing commercial discount invoices as follows:
In cases where a company uses e-invoices according to Decree 123/2020/ND-CP of the Government of Vietnam, and applies commercial discounts for purchasing customers according to legal regulations, the invoice content must comply with the provisions in Point d, Clause 6, Article 10 of Decree 123/2020/ND-CP. In cases where the discount amount is issued at the end of the discount program (period), the adjustment invoice can be issued along with a statement of invoices needing adjustment, and the adjusted amounts and taxes, according to Clause 22, Article 7 of Circular 219/2013/TT-BTC of the Ministry of Finance. For values on invoices with errors, adjustments should be made by increasing (positive sign) or decreasing (negative sign) in line with the actual adjustments according to Point e, Clause 1, Article 7 of Circular 78/2021/TT-BTC of the Ministry of Finance.
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