What are the guidelines on issuance of invoices with discount or sales promotion for goods eligible for VAT reduction in Vietnam?
- The Tax Department of Ho Chi Minh City: What are the guidelines on issuance of invoices with discount or sales promotion for goods eligible for VAT reduction?
- How to spectify the discount or sales promotion offered by the seller on invoices in Vietnam?
- What are the general regulations on the e-invoice format in Vietnam?
The Tax Department of Ho Chi Minh City: What are the guidelines on issuance of invoices with discount or sales promotion for goods eligible for VAT reduction?
On the basis of following the instructions in Official Dispatch 2121/TCT-CS in 2023 issued by the General Department of Taxation on the issuance of invoices to implement Decree 15/2022/ND-CP
On July 19, 2023, Official Letter 8999/CTTPHCM-TTHT providing guidance on e-invoices, including the content of issuing commercial discount invoices for goods eligible for VAT reduction as follows:
In case business establishments apply the form of commercial discount for customers and for commercial discounts of goods eligible for VAT reduction at the rate of 8% sold in 2022 but from January 1, 2023, when an invoice showing the commercial discount content is issued, then:
+ In case the discount amount is made on the last purchase or the next period after December 31, 2022, the discount amount of the sold goods shall be adjusted according to the content of the taxable price and the applicable tax rate. in accordance with applicable law at the time of invoice.
+ In case the discount amount is made at the end of the discount program (period) after December 31, 2022, the seller shall issue a new invoice to adjust and apply the VAT rate of 8% at the time of sale. .
As for the instructions on using e-invoices of the Ho Chi Minh City Tax Department that are different from those in the General Department of Taxation's Official Dispatch 2121/TCT-CS in 2023, from May 29, 2023 onward, business establishments shall comply with Official Dispatch 2121/TCT-CS in 2023.
What are the guidelines on issuance of invoices with discount or sales promotion for goods eligible for VAT reduction in Vietnam?
How to spectify the discount or sales promotion offered by the seller on invoices in Vietnam?
Pursuant to Clause 6, Article 10 of Decree 123/2020/ND-CP stipulating the contents of invoices 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:
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dd) In case a discount or sales promotion is offered by the seller, the invoice must clearly specify that discount or sales promotion. The price on which VAT is imposed (VAT-exclusive price) in case of discount or sales promotion shall be determined in accordance with the Law on VAT.
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11. Fees and charges payable to state budget, discounts and sales promotions (if any) shall comply with the provisions in Point e Clause 6 of this Article and relevant contents (if any).
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Accordingly, in case a discount or sales promotion is offered by the seller, the invoice must clearly specify that discount or sales promotion.
What are the general regulations on the e-invoice format in Vietnam?
Pursuant to Article 12 of Decree 123/2020/ND-CP stipulating the format of e-invoices as follows:
(1) The e-invoice format is the technical standards for type of data, length of data of information fields serving transmission, storage and display of e-invoices. E-invoices shall be XML (extensible Markup Language) documents, which are meant to share electronic data between IT systems.
(2) The data of an electronic invoice consists two components: information about the transaction and the digital signature. Authenticated e-invoices shall also contain the data of the tax authority’s code.
(3) The General Department of Taxation shall develop and announce the format of transaction-related information, digital signatures and tools for display of e-invoices prescribed herein.
(4) The following requirements must be met when sellers directly transmit data to tax authorities:
- Connect to the General Department of Taxation via a separate channel or MPLS VPN Layer 3, including 1 main channel and 1 backup channel. Each channel has a minimum bandwidth of 5 Mbps.
- Use an encrypted Web Service or Message Queue (MQ) for connection.
- Use Simple Object Access Protocol (SOAP) to compile, transmit and receive data.
(5) Contents of e-invoices shall be fully and accurately displayed, ensure readers can read them with electronic devices.
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