Vietnam: What is the definition of destruction of invoices and records according to legal regulations? What are the procedures for canceling electronic invoices?
What is the definition of destruction of invoices and records according to legal regulations in Vietnam?
Under the provisions in Clause 11, Article 3 of Decree 123/2020/ND-CP, the explanation of the destruction of invoices and records is as follows:
11. “destruction of an invoice or record”, including:
a) “destruction of an e-invoice or electronic record” means the use of a method to make an e-invoice or electronic record no longer exist on the information system or make the information contained in that e-invoice or electronic record inaccessible and un-referable.
b) “destruction of tax authority-ordered printed invoice, externally- or internally-printed invoice” means the burning, cutting, shredding or use of another destruction method as long as the destroyed invoice or record can no longer be read.
Destruction of an e-invoice or electronic record means the use of a method to make an e-invoice or electronic record no longer exist on the information system or make the information contained in that e-invoice or electronic record inaccessible and un-referable.
In contrast, the destruction of tax authority-ordered printed invoice, externally- or internally-printed invoice” means the burning, cutting, shredding or use of another destruction method as long as the destroyed invoice or record can no longer be read.
What is the definition of destruction of invoices and records according to legal regulations? What are the procedures for canceling electronic invoices?
In What Cases Must Electronic Invoices Be Canceled or Destroyed?
According to Clause 1, Article 19 of Decree 123/2020/ND-CP, the seller cancels the electronic invoice upon discovering errors on the authenticated e-invoices but not yet sent to the buyer.
Additionally, Clause 1, Article 7 of Circular 78/2021/TT-BTC also clearly stipulates the handling of erroneous e-invoices and e-invoice datasheets sent to tax authorities as follows:
If an invoice has been issued when receiving advance payment or during the service provision as prescribed in Clause 2 Article 9 of Decree 123/2020/ND-CP but then the service provision is canceled or terminated, the seller shall cancel the issued e-invoice and notify the tax authority of such cancellation of invoice using Form No. 04/SS-HDDT provided in Appendix No. IA enclosed with Decree 123/2020/ND-CP;
Furthermore, Article 27 of Decree 123/2020/ND-CP outlines the implementation of the destruction of printed invoices purchased from the tax authority in the following cases:
Destruction of tax authority-ordered printed invoices
1. Enterprises, business entities, household or individual businesses shall destroy their unused invoices. Invoices must be destroyed within 30 days from the date on which the destruction is notified to the tax authority. If an invoice is expired according to the tax authority’s notice (in case of enforcement of payment of tax debts), the relevant enterprise, business entity, household or individual business shall carry out the destruction of invoice within 10 days from the date of the tax authority’s notice or the date on which the lost invoice is found.
Invoices issued by accounting units shall be destroyed in accordance with regulations of the Law on accounting.
Invoices which are not yet issued but are exhibits of lawsuit cases shall not be destroyed and must be handled in accordance with regulations of laws.
2. Invoices of enterprises, business entities, household or individual businesses shall be destroyed as follows:
a) The enterprise, business entity, household or individual business shall make the list of invoices to be destroyed.
b) The enterprise or business entity shall establish an invoice destruction council. The invoice destruction council is comprised of senior representatives and representatives of accounting department. The household or individual business is not required to establish an invoice destruction council.
c) The invoice destruction record shall bear signatures of members of the invoice destruction council who shall assume legal liability for any mistakes thereof.
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3. Destruction of invoices by tax authorities
a) Tax authorities shall take charge of destroying invoices which are printed according to orders of a Provincial Department of Taxation, are not sold or issued but are no longer used.
b) The General Department of Taxation shall promulgate procedures for destruction of invoices printed according to orders of Provincial Departments of Taxation.
The deadline for destroying invoices is no later than 10 days from the date the tax authority notifies of their invalidity or from the date the lost invoice is found.
Note:
- Invoices issued by accounting units shall be destroyed in accordance with regulations of the Law on accounting.
- Invoices which are not yet issued but are exhibits of lawsuit cases shall not be destroyed and must be handled in accordance with regulations of laws.
What are the procedures for canceling electronic invoices in Vietnam?
According to Clause 1, Article 19 of Decree 123/2020/ND-CP, the regulations for canceling electronic invoices are as follows:
- When a seller discovers that the authenticated e-invoices that have not been sent to buyers contain errors, the seller shall inform the tax authority by using Form No. 04/SS-HDDT in Appendix IA enclosed with Decree 123/2020/ND-CP of cancellation of such erroneous authenticated e-invoices, and prepare new e-invoices with digital signatures for submission to the tax authority for its issue of new authentication codes in place of the previous ones before sending them out to buyers
- The tax authority shall cancel the erroneous authenticated e-invoices on its system.
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