Is it necessary for the seller and the buyer to draft an agreement clearly stating the discrepancies when discovering an issued invoice contains errors?
When a previously issued invoice contains errors, do the seller and the buyer need to create an agreement document?
Pursuant to the provisions at Clause 6, Article 12 of Circular 78/2021/TT-BTC as follows:
Transitional Handling
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6. From the point where enterprises, organizations, and business households, and individuals use electronic invoices as stipulated in Decree No. 123/2020/ND-CP and this Circular, if a previously issued invoice according to Decree No. 51/2010/ND-CP dated May 14, 2010, Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government of Vietnam, and the guiding documents of the Ministry of Finance contains errors, the seller and the buyer must create an agreed document clearly stating the mistakes, the seller must notify the tax authority using Form No. 04/SS-HDDT issued together with Decree No. 123/2020/ND-CP and issue a new electronic invoice (electronic invoice with tax authority’s code or electronic invoice without code) to replace the incorrect invoice. The replacement electronic invoice must have the line “Replacement for invoice Form No... Symbol... Number... dated... month... year”. The seller must digitally sign the new electronic invoice to replace the incorrect invoice (issued according to Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP of the Government of Vietnam and the guiding documents of the Ministry of Finance) to send to the buyer (for cases using electronic invoices without code) or the seller sends to the tax authority to be granted a code for the replacement electronic invoice (for cases using electronic invoices with the tax authority’s code).
In Official Dispatch 46907/CTHN-TTHT in 2022, Hanoi Tax Department guides that when a previously issued invoice is found to contain errors, the seller and the buyer must create an agreed document as follows:
In case the Company uses invoices according to Decree 123/2020/ND-CP, and an error is detected in a previously issued invoice (according to Decree 51/2010/ND-CP), the seller and the buyer must create an agreed document clearly stating the errors, the seller must notify the tax authority using Form No. 04/SS-HDDT issued together with Decree 123/2020/ND-CP and issue a new electronic invoice to replace the incorrect invoice according to the guidance at Clause 6, Article 12 of Circular 78/2021/TT-BTC.
Do the seller and the buyer need to create an agreement document clearly stating the mistakes when discovering errors in a previously issued invoice? (Image from Internet)
Does the company need to submit a report on the usage of invoices to the tax authority as required?
According to Clause 4, Article 4 of Decree 123/2020/ND-CP which stipulates as follows:
Principles for making, managing, and using invoices and documents
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4. Organizations, households, and individuals engaged in business, in the process of using, must report the usage of purchased invoices from the tax authority, report the usage of self-printed or printed payment receipts, or payment receipts purchased from the tax authority as regulated in Articles 29 and 38 of this Decree.
Pursuant to the provisions of Article 20 of Decree 123/2020/ND-CP on handling incidents related to electronic invoices with a tax authority’s code:
Handling incidents related to electronic invoices with tax authority’s code
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2. In case the tax authority’s code issuance system encounters an incident, the General Department of Taxation shall implement technical solutions to switch to the backup system and is responsible for notifying on the General Department of Taxation’s electronic portal about the incidents mentioned. The General Department of Taxation selects some service providers on electronic invoices who meet the conditions to be authorized to issue electronic invoice codes in case of the taxation system’s incident.
In case the incident of the tax authority has not been resolved, the tax authority sells invoices printed by the tax authority to some organizations and individuals for use. After the tax authority’s code issuance system is resolved, the tax authority announces for organizations and individuals to continue using electronic invoices with tax authority’s code no later than 02 working days from the date indicated in the tax authority’s notice. Organizations and individuals must submit a report on the usage of purchased paper invoices from the tax authority according to Form No. BC26/HDG in Appendix IA issued together with this Decree.
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At the same time, according to Article 29 of Decree 123/2020/ND-CP which stipulates as follows:
Report on the usage of printed invoices purchased from the tax authority and the statement of invoices used during the period
1. Quarterly, enterprises, economic organizations, households, and individuals engaged in business that purchase invoices from the tax authority are responsible for submitting a report on the usage of invoices and a statement of invoices used during the period to the direct tax authority.
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From the provisions mentioned above, in Official Dispatch 46907/CTHN-TTHT in 2022, Hanoi Tax Department guides as follows:
If the Company is not subject to the provisions of Clause 4, Article 4, Clause 2, Article 20, and Clause 1, Article 29 of Decree 123/2020/ND-CP, it does not have to submit a report on the usage of invoices to the tax authority.
Can additional tax declaration dossiers be filed when discovering errors in the previously submitted tax declaration dossiers?
According to Article 47 of the Law on Tax Administration 2019 which stipulates the additional filing of tax declaration dossiers as follows:
Additional filing of tax declaration dossiers
1. Taxpayers discovering errors in the tax declaration dossiers already submitted to the tax authority are allowed to file additional declarations within 10 years from the deadline for filing the tax declaration dossier of the tax period containing the errors, but before the tax authority or competent authority announces the inspection, examination decision.
2. When the tax authority or competent authority has announced the decision to conduct a tax inspection or examination at the taxpayer’s office, the taxpayer is still allowed to file additional tax declaration dossiers; the tax authority shall impose administrative penalties for tax administration violations as stipulated in Articles 142 and 143 of this Law.
3. After the tax authority or competent authority has issued conclusions or tax handling decisions following inspection or examination at the taxpayer’s office, the additional filing of tax declarations is regulated as follows:
a) Taxpayers are allowed to file additional tax declaration dossiers in case of increasing payable tax amount, decreasing deductible tax amount, or decreasing exempted, reduced, refundable tax amounts and are subject to administrative penalties for tax administration violations as stipulated in Articles 142 and 143 of this Law;
b) If taxpayers discover errors in the tax declaration dossier which result in a decrease in the payable tax amount, increase in the deductible tax amount, increase in the exempted, reduced, refundable tax amounts, the handling shall follow the procedures for resolving tax disputes.
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Based on the above provisions, in Official Dispatch 46907/CTHN-TTHT in 2022, Hanoi Tax Department guides as follows:
In case taxpayers discover errors in the tax declaration dossiers already submitted to the tax authority, they are allowed to file additional declarations as stipulated in Article 47 of the Law on Tax Administration 2019 about additional filing of tax declaration dossiers.
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