Vietnam: Can enterprises and household businesses continue using authenticated invoices when failing to operate in the registered business locations?

"Can enterprises and household businesses in Vietnam continue using authenticated invoices when failing to operate in the registered business locations?" - asked Mr. Ha (Long An)

Can enterprises and household businesses in Vietnam continue using authenticated invoices when failing to operate in the registered business locations?

Pursuant to Clause 1, Article 16 of Decree 123/2020/ND-CP stipulating as follows:

Suspension of use of e-invoices
1. Enterprises, business entities, other organizations, household or individual businesses shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:
a) An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;
b) An enterprise, business entity, other organization, household business or individual business does not operate at the registered location as verified and announced by the tax authority;
c) An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;
d) An enterprise, business entity, other organization, household business or individual business is banned from using e-invoices by the tax authority for the purpose of enforcement of payment of tax debts;
dd) E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;
e) E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;
g) A business registration authority or competent authority requests an enterprise to suspend operation in a conditional business line after finding that this enterprise does not fully satisfy the business conditions prescribed by law.
If the tax authority, through inspection, discovers that the enterprise is established for the purpose of trade and use of illegal e-invoices or illegal use of e-invoices for tax evasion purposes, the enterprise shall face administrative penalties and be suspended from use of e-invoices according to the decision issued by the tax authority.

According to the above provisions, in case tax authorities verify and notify that enterprises and household businesses do not operate in the registered business locations, they must suspend the use of authenticated invoices.

What are the procedures for suspending the use of authenticated invoices in Vietnam?

Pursuant to Clause 2, Article 16 of Decree 123/2020/ND-CP stipulating as follows:

Suspension of use of e-invoices
...
2. Procedures for suspension of use of e-invoices:
a) The supervisory tax authority shall send a notification requesting the taxpayer in Point dd, e or g Clause 1 of this Article to provide explanation or additional documents about its use of e-invoices.
b) The taxpayer must provide such explanation or additional documents within 02 working days from receipt of the notification from the tax authority. Such explanation or additional documents may be provided directly or in writing for the tax authority.
c) The taxpayer shall continue using e-invoices or provide explanation. To be specific:
c.1) If the taxpayer provides adequate and convincing explanation or additional documents as prescribed, it shall continue using e-invoices.
c.2) If the explanation or additional documents provided by the taxpayer is/are not convincing, the tax authority shall continue requesting the taxpayer to provide additional documents. Additional documents must be submitted within 02 working days from receipt of the tax authority’s request.
d) If the taxpayer fails to provide explanation or additional documents within the requested period, the tax authority shall request the taxpayer to suspend its use of authenticated e-invoices or unauthenticated e-invoices, and take further actions as prescribed.

What is an authenticated e-invoice in Vietnam?

Pursuant to Clause 2, Article 3 of Decree 123/2020/ND-CP stipulating as follows:

Definitions
...
2. “e-invoice” means an invoice, with or without the tax authority’s authentication code, in the form of electronic data, issued by the goods seller or service provider by using electronic instruments to record information on the sale of goods or service provision in accordance with regulations of the Law on accounting and the Law on taxation, including the invoices generated by POS cash registers that are digitally connected to tax authorities. To be specific:
a) “authenticated e-invoice” means an e-invoice that is granted an authentication code by the tax authority before it is sent to the buyer by the goods seller or service provider.
The authentication code on an e-invoice is a unique serial number generated by the tax authority’s system and a series of characters encoded by the tax authority based on the information specified by the seller on the invoice.
b) “unauthenticated e-invoice” means an e-invoice that is sent to the buyer by the goods seller or service provider without the tax authority’s authentication code.

Accordingly, the authenticated e-invoice means an e-invoice that is granted an authentication code by the tax authority before it is sent to the buyer by the goods seller or service provider.

LawNet

The latest legal advice
Related topics
MOST READ
{{i.ImageTitle_Alt}}
{{i.Title}}