What are the instructions for issuing corrected value-added tax invoices by Long An Tax Department in Official Dispatch 5363/CTLAN-TTHT?

Main Content

• What are the instructions for issuing corrected value-added tax invoices by Long An Tax Department in Official Dispatch 5363/CTLAN-TTHT?
• What is the time limit for informing the results of receiving and handling a notice on erroneous invoices by the tax authority in Vietnam?
• What are the cases where tax declarants issue value-added tax invoices in Vietnam?

What are the instructions for issuing corrected value-added tax invoices by Long An Tax Department in Official Dispatch 5363/CTLAN-TTHT?

On 29/12/2023, Long An Tax Department issued Official Dispatch 5363/CTLAN-TTHT 2023 Download on instructions for issuing corrected value-added tax invoices

In Official Dispatch 5363/CTLAN-TTHT 2023, Long An Tax Department guides the issuance of corrected value-added tax invoices as follows:

Under Clause 5, Article 12 of Circular 219/2013/TT-BTC regulating the determination of VAT payable:

Credit-invoice method

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5. VAT payable:

a) Output VAT equals the total VAT on sold goods and services written on the VAT invoices.

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Taxpayers must adhere to accounting and invoicing practice in accordance with the laws on accounting and invoicing. In case the tax authority finds an incorrect VAT rate on an invoice for the sale of goods and services:

If the incorrect VAT rate is higher than that prescribed by VAT laws, the taxpayer must pay tax at the rate written on the invoice; if the incorrect VAT rate is lower than that prescribed by VAT laws, the taxpayer must pay tax at the rate prescribed by the VAT laws.

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Under Clause 2, Article 19 of Decree 123/2020/ND-CP regulating the handling of erroneous invoices:

Handling of erroneous invoices

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2. If an authenticated or unauthenticated e-invoice which has been sent to the buyer is detected by either the buyer or seller to contain errors, it shall be handled as follows:

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b) 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:

b1) 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……….”).

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Under Clause 3, Article 7, Circular 78/2021/TT-BTC regulating the supplementation of tax dossiers concerning corrected or replaced e-invoices:

Handling of erroneous e-invoices and e-invoice datasheets sent to tax authorities

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3. The supplementation of tax dossiers concerning corrected or replaced e-invoices (including cancelled e-invoices) shall be carried out in accordance with regulations of the Law on tax administration.

Under Article 16 of Decree 125/2020/ND-CP regulating penalties for act of making a false declaration that causes any deficiency in taxes payable or any increase in amounts of tax exemption, reduction or refund:

Penalties for act of making false declaration that causes any deficiency in taxes payable or any increase in amounts of tax exemption, reduction or refund

1. A fine which equals 20% of the underpaid tax amount or the higher-than-prescribed amount of tax exemption, reduction or refund shall be imposed for any of the following violations:

a) Making false declaration of tax bases or deductible tax amounts or incorrectly determining cases of tax exemption, reduction or refund, resulting in any deficiency in tax amounts payable or any increase in amounts of tax exemption, reduction or refund though economic activities have already been fully recorded in legitimate accounting books, invoices and evidencing documents;

b) Making false declaration causing any reduction in payable tax amounts or any increase in amounts of tax exemption, reduction or refund, which does not fall into the case specified at point a of this clause though the violating taxpayer has voluntarily made a supplementary declaration and fully paid unpaid back taxes or tax arrears to the state budget prior to the deadline for the tax authority’s tax inspection and examination at taxpayers' offices or premises;

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Thus, based on the above provisions, in case the Company issues an invoice with a VAT rate lower than the prescribed tax rate, the Company shall make an invoice to correct or replace the erroneous invoice as prescribed at Point b, Clause 2, Article 19 of the Government's Decree 123/2020/ND-CP and declare the corrected or replaced invoice as prescribed in Clause 3 Article 7 of Circular 78/2021/TT-BTC dated September 17, 9 of the Ministry of Finance.

The Company that fails to make a corrected or replaced invoice after issuing VAT invoices with the wrong tax rate, resulting in the wrong tax declaration, will be subject to tax arrears and penalties as prescribed in Article 16 of the Government's Decree 125/2020/ND-CP.

What is the time limit for informing the results of receiving and handling a notice on erroneous invoices by the tax authority in Vietnam?

Under Clause 4, Article 19 of Decree 123/2020/ND-CP:

The tax authority shall inform the receipt and the handling result (using form No. 01/TB-HDSS in Appendix IB issued together with Decree 123/2020/ND-CP download) within 01 working day.

Note: Though a canceled electronic invoice has no value, it may be retained for reference.

Thus, within 01 working day, the tax authority shall inform the receipt and the handling of a notice on erroneous invoices.

What are the cases where tax declarants issue value-added tax invoices in Vietnam?

Under Clause 1, Article 8 of Decree 123/2020/ND-CP, the value-added tax invoice is an invoice that may be used by organizations making VAT declarations by employing the credit-invoice method for the following activities:

- Domestic sale of goods or provision of services;

- Provision of international transport services;

- Export of goods to free trade zones and other cases considered as export of goods;

- Export of goods or provision of services in a foreign market.

Thus, tax declarants issue value-added tax invoices in Vietnam in case of domestic sale of goods or provision of services; provision of international transport services; export of goods to free trade zones and other cases considered as export of goods; export of goods or provision of services in a foreign market.