Vietnam: What are the instructions for handling e-invoices sent to buyers with improper TIN and addresses of buyers?
What are the instructions for handling e-invoices sent to buyers with improper TIN and addresses of buyers in Vietnam?
Pursuant to Clause 2, Article 19 of Decree No. 123/2020/ND-CP on the handling of erroneous invoices in case an authenticated or unauthenticated e-invoice which has been sent to the buyer is detected by either the buyer or seller to contain errors as follows:
- If the buyer’s name or address is wrong but the TIN and other information are correct:
+ The seller shall inform the buyer of the errors and is not required to re-issue the invoice.
+ The seller shall inform the tax authority of the erroneous e-invoice unless data about the erroneous unauthenticated e-invoice is not yet sent to the tax authority.
- If the information about TIN, amount, tax rate, tax amount or goods on the invoice is wrong, the error shall be handled by adopting one of the following methods:
+ The seller shall create an e-invoice to correct the erroneous one. The seller and the buyer shall prepare a document specifying the errors as agreed upon between them before the seller issues a correction e-invoice.
The correction e-invoice shall bear the text “Điều chỉnh cho hóa đơn Mẫu số... ký hiệu... số... ngày... tháng... năm” (“This invoice corrects the invoice form No……….., reference No………, No………dated……….”).
+ The seller issues a new e-invoice to replace the erroneous one. The seller and the buyer shall prepare a document specifying the errors as agreed upon between them before the seller issues a new e-invoice to replace the erroneous one.
The replacing invoice shall bear the text “Thay thế cho hóa đơn Mẫu số... ký hiệu... số... ngày... tháng... năm” (“This invoice replaces the invoice form No……….., reference No………, No………dated……….”).
The seller shall add the digital signature on the e-invoice which is issued to correct or replace the erroneous one, then send it to the buyer (in case of unauthenticated invoices) or send it to the tax authority for its issue of a new authentication code (in case of authenticated invoices).
Accordingly, the seller must issue an electronic invoice to replace the erroneous invoice.
The seller and the buyer shall prepare a document specifying the errors as agreed upon between them before the seller issues a correction e-invoice.
What is the time limit for tax dossier supplementation in Vietnam?
Pursuant to Article 47 of the Law on Tax Administration 2019 as follows:
Tax dossier supplementation
1. In case the tax declaration dossier submitted to the tax authority is erroneous or inadequate, supplementary documents may be provided within 10 years from the deadline for submission of the erroneous or inadequate tax declaration dossier but before the tax authority or a competent authority announces a decision on tax document examination.
2. When the tax authority or a competent authority has announced the decision on tax inspection or tax audit on the taxpayer’s premises, the taxpayer is still allowed to provide supplementary documents; the tax authority shall impose administrative penalties for the violations specified in Article 142 and 143 of this Law.
Thus, in case the tax declaration dossier submitted to the tax authority is erroneous or inadequate, supplementary documents may be provided within 10 years from the deadline for submission of the erroneous or inadequate tax declaration dossier but before the tax authority or a competent authority announces a decision on tax document examination.
What are the supplementary documents in case of erroneous e-invoices in Vietnam?
Pursuant to Point a, Clause 4, Article 7 of Decree No. 126/2020/ND-CP as follows:
Tax declaration dossier
...
4. The taxpayer may submit supplementary documents if the tax declaration dossier is found erroneous as prescribed in Article 47 of the Law on Tax administration using the set form provided by the Minister of Finance. To be specific:
a) If the supplementation does not lead to a change in tax obligations, only a written explanation and relevant declaration is required while a supplementary tax return is not required.
If the annual tax finalization dossier has not been submitted, the taxpayer shall provide supplementary tax documents of the erroneous month or quarter and include the rectification in the annual tax finalization dossier.
If the annual tax finalization dossier has been submitted, only supplementation to the annual tax finalization dossier is required. In case of supplementation of the income payer’s terminal personal income tax return, the erroneous monthly or quarterly tax return shall also be supplemented.
Accordingly, taxpayers must submit supplementary documents as follows:
- If the supplementation does not lead to a change in tax obligations, only a written explanation and relevant declaration is required while a supplementary tax return is not required.
- If the annual tax finalization dossier has not been submitted, the taxpayer shall provide supplementary tax documents of the erroneous month or quarter and include the rectification in the annual tax finalization dossier.
- If the annual tax finalization dossier has been submitted, only supplementation to the annual tax finalization dossier is required. In case of supplementation of the income payer’s terminal personal income tax return, the erroneous monthly or quarterly tax return shall also be supplemented.
Specifically, in Official Dispatch 59806/CTHN-TTHT guiding the handling of erroneous invoices to the northern branch of Vietranstimex Multimodal Transport Joint Stock Company as follows:
Pursuant to the above provisions, in case the branch of the company detects erroneous invoices issued under the provisions of Decree No. 123/2020/ND-CP after sending them to buyers ( improper TIN and address of buyers), the branch of the company may choose to issue an electronic invoice to correct the erroneous invoice or issue a new electronic invoice to replace the erroneous electronic invoices according to the instructions at point b, Clause 2, Article 9 of Decree No. 123/2020/ND-CP.
The branch of the company shall make supplementations according to the instructions in Article 47 of the Law on Tax Administration No. 38/2019/QH14 and Clause 4, Article 7 of Decree No. 126/2020/ND-CP. In case the supplementation does not lead to a change in tax obligations, only a written explanation and relevant declaration is required while a supplementary tax return is not required as prescribed at point a, clause 4 of Article 7 of Decree No. 126/2020/ND-CP.
The branch of the company must study the legal regulations and compare them with the actual situation of the unit to comply with the regulations.
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