Issuance of Invoices and VAT Taxable Prices for Goods and Services Given as Gifts to Customers: Guidance Details.
Principles of Issuance, Management, and Use of Invoices and Documents as Regulated
According to Article 4 of Decree 123/2020/ND-CP, the principles of issuance, management, and use of invoices and documents are stipulated as follows:
Principles of Issuance, Management, and Use of Invoices and Documents
1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods, services are used for promotion, advertising, samples; goods, services are given, gifted, exchanged, used as salary substitutes for employees, and internal consumption (except for internally circulated goods to continue the production process); goods are issued in the form of loans, borrowing or returned goods) and must fully record the content as prescribed in Article 10 of this Decree. In the case of using electronic invoices, it must comply with the data format standards of the tax authority as stipulated in Article 12 of this Decree.
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Thus, the principles of issuance, management, and use of invoices and documents are regulated as above.
Issuance of invoices and VAT calculation for goods, services used to give, gift to customers (Image from the Internet)
What are the regulations regarding the contents of invoices?
According to Article 10 of Decree 123/2020/ND-CP regarding the contents of invoices:
Contents of Invoices
1. Invoice name, invoice code, invoice template code. Specifically, as follows:
a) The name of the invoice is the name of each type of invoice stipulated in Article 8 of this Decree, shown on each invoice, such as: VALUE ADDED TAX INVOICE, VALUE ADDED TAX INVOICE CUM TAX REFUND DECLARATION, VALUE ADDED TAX INVOICE CUM RECEIPT, SALES INVOICE, INVOICE FOR SALE OF STATE-OWNED PROPERTY, STAMPS, TICKETS, CARDS, SALES INVOICE FOR NATIONAL RESERVES.
b) The invoice template code, invoice code shall be implemented following the guidelines of the Ministry of Finance.
2. The name of the invoice copy applies to invoices printed by the tax authority as guided by the Ministry of Finance.
3. Invoice number
a) The invoice number is the serial number shown on the invoice when the seller issues the invoice. The invoice number is recorded with Arabic numerals with a maximum of 8 digits, starting from number 1 on January 1 or the date of starting to use the invoice and ending on December 31 annually with a maximum of up to 99,999,999. Invoices are issued in continuous order from the smallest number to the largest number within the same invoice code and invoice template code. For invoices printed by the tax authority, the invoice number is preprinted on the invoice, and the buyer can use it until it runs out after purchase.
In cases where a business organization has multiple sales locations or many offices simultaneously using one type of electronic invoice with the same code by random extraction from an electronic invoice issuance system, the invoice is issued in continuous order from the smallest number to the largest number at the time the seller digitally signs the invoice.
b) In cases where the invoice number is not issued according to the above principle, the electronic invoice issuance system must ensure that it increases over time, and each invoice number is ensured to be issued and used only once with a maximum of 8 digits.
4. Name, address, and tax code of the seller
The invoice must show the name, address, and tax code of the seller exactly as recorded in the enterprise registration certificate, branch operation registration certificate, business household registration certificate, taxpayer registration certificate, tax code notification, investment registration certificate, or cooperative registration certificate.
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Thus, the contents of invoices are regulated as above.
How is the VAT calculation for goods and services used to give, gift to customers regulated?
Pursuant to Clause 3, Article 7 of Circular 219/2013/TT-BTC, the regulation is as follows:
Tax Calculation Price
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3. For products, goods, services (including purchased from outside or self-produced by the business establishment) used for exchange, gifting, donation, or salary payment, the VAT calculation price is the price of goods, services of the same type or equivalent at the time these activities occur.
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Thus, according to the regulations, for products, goods, services (including purchased from outside or self-produced by the business establishment) used for exchange, gifting, donation, or salary payment, the VAT calculation price is the price of goods, services of the same type or equivalent at the time these activities occur.
How are the issuance of invoices and VAT calculation for goods and services used to give, gift to customers guided?
On September 29, 2022, the Hanoi Tax Department issued Official Dispatch 47499/CTHN-TTHT in 2022 regarding VAT calculation for gifted goods, which guides as follows:
The company must issue invoices for goods and services used to give, gift to customers, and the invoices must fully record the content as per Article 10 of Decree 123/2020/ND-CP. VAT calculation for gifted goods and services is carried out following the guidance in Clause 3, Article 7 of Circular 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance.
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