Does the seller have to issue an invoice when the buyer returns the goods? If the e-invoices in Vietnam has been made and sent to the buyer, what should be done with the wrong goods?
Is it mandatory to deliver the invoice to the buyer when the customer returns the goods, what if there is an error?
According to Official Letter 28218/CTHN-TTHT in 2022, the Hanoi Tax Department provides guidance on e-invoicing as follows:
According to the provisions of Clause 1, Article 4 of Decree 123/2020/ND-CP on the principles of making, managing and using invoices and documents
- When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases of goods and services used for promotion, advertising, samples; goods and services). used for giving, giving, giving, exchanging, paying for employees' wages and for internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of loans, lending or returning goods) and must fully write the contents as prescribed in Article 10 of this Decree. In case of using e-invoice in Vietnam, it must follow the standard data format of the tax authorities as prescribed in Article 10 of this Decree. 12 This Decree..."
Thus, in principle, when selling goods or providing services, the seller must issue an invoice to deliver to the buyer, including the case of goods return, and must fully record the contents in accordance with this Decree. .
In case e-invoices in Vietnam has been made and sent to the buyer, detecting that there is an error in the goods stated on the invoice, the company shall process the e-invoice made with errors according to the instructions at Point b, Clause 2, Article 19 of Decree No. Decree 123/2020/ND-CP below:
- In case there is a mistake: tax code; If the invoice amount is incorrect, the tax rate or tax is incorrect, or the goods listed on the invoice are not in accordance with the specifications and quality, you can choose one of two ways to use the e-invoices in Vietnam as follows:
+ The seller issues e-invoices in Vietnam correcting the erroneous invoice. In case the seller and the buyer have agreed on the making of a written agreement before issuing the invoice to adjust for the invoice already made with errors, the seller and the buyer shall make a written agreement clearly stating the error, then e-invoicing seller corrects errors in the invoice. An e-invoice for adjustment of an e-invoice that has been made with errors must contain the words "Adjustment for invoice Model No... symbol... number... date... month...".
+ The seller shall issue a new e-invoice to replace the erroneous e-invoices in Vietnam, unless the seller and the buyer have agreed on the preparation of a written agreement before issuing an invoice to replace the existing invoice. If there is an error, the seller and the buyer make a written agreement specifying the error, and then the seller issues an electronic invoice to replace the incorrect invoice. A new e-invoice that replaces an existing e-invoice with errors must have the words "Replace the invoice Model No.... symbol... number... date... month... year" .
+ The seller digitally signs on the new e-invoice that corrects or replaces the erroneously made e-invoice, then the seller sends it to the buyer (for the case of using an e-invoice without the agency's code). tax authority) or send it to the tax authority for the tax authority to issue a code for a new e-invoice to send to the buyer (for the case of using an e-invoice with the tax authority's code)
Does the seller have to issue an invoice when the buyer returns the goods? If the e-invoices in Vietnam has been made and sent to the buyer, what should be done with the wrong goods? Image from: Internet
How to handle invoices according to old regulations?
According to Official Letter 28218/CTHN-TTHT in 2022, the Hanoi Tax Department provides guidance on e-invoicing as follows:
- From the time the tax authority accepts the registration of using e-invoices according to the provisions of Decree 123/2020/ND-CP dated October 19, 2020 of the Government, the Company must stop using electricity bills. If the customer has announced the issuance according to the previous regulations, destroy the paper invoice that has been announced to be issued but not yet used (if any).
- In case, the Company has been notified by the tax authority to accept the registration of using e-invoices according to Decree 123/2020/ND-CP and Circular No. 78/2011/TT-BTC, the invoice processing was established in accordance with the provisions of Decree No. 51/2010/ND-CP dated May 14, 2010, Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government and guiding documents of the Ministry of Industry and Trade. Financial errors are made according to the guidance in Clause 1, Article 12 of Circular No. 78/2021/TT-BTC dated 179/2001 of the Ministry of Finance.
How do return invoices, adjusted invoices, and replacement invoices pay VAT?
According to Official Letter 28218/CTHN-TTHT in 2022, the Hanoi Tax Department provides guidance on e-invoicing as follows:
In case the Company issues a return invoice, an adjusted invoice, or a replacement invoice according to the provisions of Articles 4 and 19 of Decree No. 123/2020/ND-CP above, the Company shall declare VAT on the above invoices is as follows:
- For goods return invoices: The company declares at the time of generation that the damaged return invoice is issued,
- For adjusted and replaced invoices: The company makes additional declarations and adjustments in the tax period with errors as prescribed in Article 47 of the Law on Tax Administration No. 38/2012/QH14 dated June 13/ 2013 of the National Assembly and Clause 4, Article 7 of Decree 126/2000/ND-CP of the Government.
Decree 123/2020/ND-CP takes effect from July 1, 2022.
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