Vietnam: May an invoice for service provision be accompanied by a list of services supplied? Is it allowed to finalize CIT once for many previous years?
May an invoice for service provision in Vietnam be accompanied by a list of services supplied?
Pursuant to the provisions at Point a, Clause 6, Article 10 of Decree 123/2020/ND-CP as follows:
Contents of invoices
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6. The name, unit, quantity, unit price, amount payable exclusive of VAT, VAT rate, total VAT amount calculated by each VAT rate, total VAT payable and total amount payable inclusive of VAT:
a) Name, unit, quantity, unit price:
- Name of good/service: written on the invoice in Vietnamese language. If the goods fall into different categories, their names shall contain the categories (e.g. Samsung phone, Nokia phone, etc.). In case the right to use or ownership of the goods has to be registered, the invoice shall bear the number or symbol of the goods that is needed for registration (e.g. chassis number, engine number of a vehicle, address, level, dimensions and number of stories of a house, etc.).
If foreign language text is necessary, it must be placed between parentheses () or next to the Vietnamese text, in which case it must be smaller than the Vietnamese text. If the good or service has a pLU code, both the name and the pLU code must be written on the invoice.
- Unit: determined by the seller according to the nature and characteristics of the goods. It can be a unit of measurement (e.g. tonne, kg, g, mg, tael, once, piece, box, can, pack, tube, m3, m2, m...). An invoice for provision of services does not necessarily have the item “Đơn vị tính” (unit). The unit of services is the time of provision of the services and contents of the services.
- Quantity: written by the seller in Arabic numerals according to the unit of goods/services. For special goods/services that are periodically sold/supplied like electricity, water, telecommunications services, IT services, television services, postal and delivery services, banking, securities or insurance, the invoice shall specify the good purchase or service provision cycle. An invoice for a service periodically provided may be accompanied by a list of goods/services supplied. This list shall be retained together with the issued invoice to serve inspections by competent authorities.
The invoice must bear the text “kèm theo bảng kê số…, ngày...tháng...năm” (“This invoice is accompanied by the list No…..date….”). This list shall bear the seller’s name, TIN and address, name, quantity and unit of goods/services, total amount payable, date, name and signature of the person preparing the list. If the seller pays VAT by adopting the credit-invoice method, the list must have the items “thuế suất giá trị gia tăng” (VAT rate) and “tiền thuế giá trị gia tăng” (VAT amount). Total amount payable must be same as that specified on the VAT invoice. Goods/services sold shall be enumerated in chronological order. The list must bear the text “kèm theo hóa đơn số ngày...tháng...năm” (“This list is accompanied with the invoice No…..date….”).
- Unit price: written by the seller according to the unit of goods/services. If the invoice is accompanied by a list of goods/services supplied, this invoice does not necessarily bear the unit price.
Thus, an invoice for a service periodically provided may be accompanied by a list of goods/services supplied. This list shall be retained together with the issued invoice to serve inspections by competent authorities.
What is the number of lists of goods/services supplied made on one invoice in Vietnam?
Pursuant to Point a, Clause 6, Article 10 of Decree 123/2020/ND-CP, there are the following provisions:
Contents of invoices
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The invoice must bear the text “kèm theo bảng kê số…, ngày...tháng...năm” (“This invoice is accompanied by the list No…..date….”). This list shall bear the seller’s name, TIN and address, name, quantity and unit of goods/services, total amount payable, date, name and signature of the person preparing the list. If the seller pays VAT by adopting the credit-invoice method, the list must have the items “thuế suất giá trị gia tăng” (VAT rate) and “tiền thuế giá trị gia tăng” (VAT amount). Total amount payable must be same as that specified on the VAT invoice. Goods/services sold shall be enumerated in chronological order. The list must bear the text “kèm theo hóa đơn số ngày...tháng...năm” (“This list is accompanied with the invoice No…..date….”).".
Accordingly, currently, the law does not provide for the number of lists of goods/services supplied made on one invoice.
In Vietnam, is it allowed to finalize CIT once for many previous years?
Pursuant to Clause 6, Article 8 of Decree 126/2020/ND-CP (amended by Clause 3, Article 1 of Decree 91/2022/ND-CP) on annual CIT finalization as follows:
Taxes declared monthly, quarterly, annually, separately; tax finalization
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6. The following taxes and amounts shall be declared annually and finalized when an enterprise is dissolved, shuts down, terminates a contract or undergoes rearrangement. In case of conversion (except equitized state-owned enterprises) where the enterprise after conversion inherits all tax obligations of the enterprise before conversion, tax shall be finalized at the end of the year instead of the issuance date of the decision on conversion. Tax shall be finalized at the end of the year):
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b) Corporate income tax (except corporate income tax on transfer of foreign contractor's capital; monthly or separately declared corporate income tax on revenue specified in Point dd Clause 4 of this Article). The taxpayer shall calculate the provisional corporate income tax every quarter (including distribution of corporate income tax among dependent units, business locations and other real estate in provinces other than the province in which the enterprise is headquartered) and may deduct the provisional tax payable under the annual tax finalization dossier.
Taxpayers that have to prepare quarterly financial statements under accounting laws shall calculate provisional corporate income tax quarterly according to the quarterly financial statements and tax laws.
Taxpayers that are not required to prepare quarter financial statements under accounting laws shall calculate provisional corporate income tax quarterly according to their quarterly business performance and tax laws.
The total amount of provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier. If the provisional corporate income tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget.
In case the taxpayer executes a project of investment in infrastructure or housing for transfer or lease purchase and collect progress payments from customers, provisional corporate income tax shall be paid quarterly at the rate of 1% of the amount collected. In case the project is yet to be transferred and not included in the revenue subject to corporate income tax in the year, it shall be included in the tax finalization dossier when the project is partially or fully transferred instead of the annual tax finalization dossier"
In addition, Clause 2, Article 44 of the Law on Tax Administration 2019 on the deadlines for submission of tax declaration dossiers for tor taxes declared annually as follows:
Deadlines for submission of tax declaration dossiers
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2. For taxes declared annually:
a) For annual tax finalization dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year
b) For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;
c) For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year. For new household businesses and individual businesses: within 10 days from the date of commencement of the business.
Thus, according to the above regulations, enterprises in Vietnam must submit annual tax finalization dossiers no later than the last day of the 3rd month from the end of the calendar year or fiscal year; for annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year
Accordingly, enterprises are not allowed to finalize CIT once for many previous years.
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