Vietnam: How to handle when the seller discovers that the e-invoice contains errors in the buyer's name and address?
How are invoices classified?
Pursuant to Article 8 of Decree No. 123/2020/ND-CP, invoices are classified into the following types:
(1) Value-added tax (VAT) invoice is an invoice which may be used by organizations making VAT declaration by employing the credit-invoice method for the following activities:
- Domestic sale of goods or provision of services;
- Provision of international transport services;
- Export of goods to free trade zones and other cases considered as export of goods;
- Export of goods or provision of services in a foreign market.
(2) Sales invoice is an invoice which may be used by the following organizations and individuals:
- Organizations or individuals that declare and calculate VAT by employing direct method for the following activities:
+ Domestic sale of goods or provision of services;
+ Provision of international transport services;
+ Export of goods to free trade zones and other cases considered as export of goods;
+ Export of goods or provision of services in a foreign market.
- Organizations or individuals in free trade zones that sell goods or provide services to the domestic market, sell goods or provide services to other organizations/individuals in free trade zones, or sell goods or provide services to a foreign market. In such cases, invoices must bear the phrase “Dành cho tổ chức, cá nhân trong khu phi thuế quan” ("For organizations/individuals in free trade zones”).
(3) Public property electronic sales invoice is used when selling the following types of property:
- Public property at authorities, organizations or units (including state owned houses);
- Infrastructure property;
- Public property that is managed by enterprises as assigned by the Government, excluding state capital invested in enterprises;
- Property of state-funded projects;
- Property under the established all-people ownership;
- Public property appropriated under decisions issued by competent regulatory authorities or officials;
- Raw materials and supplies obtained from the disposal of public property.
(4) Electronic sales invoice on national reserve goods is used when a state reserves agency or unit sells national reserve goods in accordance with regulations and laws.
(5) Other invoices, including:
- Stamps, tickets and cards in the form and containing contents prescribed herein;
- Air freight receipts; receipts of international transport charges; receipts of banking service charges, except the cases prescribed in Point a of this Clause where a record whose format and contents are made according to international practices and regulations of relevant laws.
(6) Records printed, issued, used and managed in the same manner as invoices, including delivery and internal transfer notes, and delivery notes for goods sent to sales agents.
Vietnam: How to handle when the seller discovers that the e-invoice contains errors in the buyer's name and address?
Instructions for handling when the seller discovers that the e-invoice contains errors in the buyer's name and address?
Pursuant to Point a, Clause 2, Article 19 of Decree No. 123/2020/ND-CP stipulating the handling of erroneous invoices in Vietnam as follows:
Handling of erroneous invoices in Vietnam
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2. If an authenticated or unauthenticated e-invoice which has been sent to the buyer is detected by either the buyer or seller to contain errors, it shall be handled as follows:
a) If the buyer’s name or address is wrong but the TIN and other information are correct, the seller shall inform the buyer of the errors and is not required to re-issue the invoice. The seller shall inform the tax authority of the erroneous e-invoice by using Form No. 04/SS-HDDT provided in Appendix IA enclosed herewith, unless data about the erroneous unauthenticated e-invoice is not yet sent to the tax authority.
At the same time, for the case of electronic invoices that detect errors in buyer information, the Tax Department of Ba Ria - Vung Tau province has Notice 3734/TB-CT in 2022 guiding the handling about the case where the electronic invoice of the tax authority or without the tax authority's code sent to the buyer, the buyer or the seller discovers that there is an error in the buyer's name and address without wrong tax code and other contents:
Step 1: The seller notifies the buyer that the invoice is in error.
Step 2: The seller shall notify the tax authority of the incorrect e-invoice according to Form No. 04/SS-HDDT Appendix IA (unless the e-invoice does not have the tax authority's code with the above error, the invoice data has not been sent to the tax authority).
Note:
- The seller does not have to re-invoice.
- In case the e-invoice has been made with errors and the seller has handled it in the form of adjustment or replacement as prescribed at Point b, Clause 2, Article 19 of Decree No. 123/2020/ND-CP, then continue to If the seller continues to have errors, the next time the seller will handle the error, the seller will follow the method applied when handling the error for the first time.
- The seller chooses Form No. 04/SS-HDDT to notify the adjustment of each invoice with errors or notify the adjustment for many electronic invoices with errors, and send it to the tax authority at any time, but no later than the last day of the VAT declaration period, for which an adjusted e-invoice is generated.
See details at Notice No. 3734/TB-CT in 2022: Click here.
What is the form of notice of erroneous e-invoices?
The form of notice of erroneous e-invoices, made according to Form No. 04/SS-HDDT, Appendix IA issued together with Decree No. 123/2020/ND-CP is as follows:
Download the form of notice of erroneous e-invoices: Click here.
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