What are the principles in handling of erroneous e-invoices in Vietnam according to Circular 78/2021/TT-BTC?
- What are the principles in handling of erroneous e-invoices in Vietnam according to Circular 78/2021/TT-BTC?
- In case of discovering the errors on e-invoices in Vietnam, will sellers create an e-invoice to correct or issue a new e-invoice to replace the erroneous one?
- What is the guidance of the General Department of Taxation on handling erroneous e-invoices in Vietnam?
What are the principles in handling of erroneous e-invoices in Vietnam according to Circular 78/2021/TT-BTC?
Pursuant to Article 7 of Circular 78/2021/TT-BTC, when an e-invoice has errors, the parties should pay attention to some handling principles as follows:
Erroneous e-invoices | Handling of erroneous e-invoices |
If the issued e-invoice contains errors and requires a new tax authority’s identification code or the erroneous e-invoice needs to be corrected or replaced | The seller shall use Form No. 04/SS-HDDT provided in Appendix No. IA enclosed with Decree No. 123/2020/ND-CP to notify the correction of each or multiple erroneous e-invoices, and send a notice using Form No. 04/SS-HDDT to the tax authority by the last day of the VAT declaration period in which erroneous e-invoices are handled |
If an invoice has been issued when receiving advance payment or during the service provision but then the service provision is cancelled or terminated | The seller shall cancel the issued e-invoice and notify the tax authority of such cancellation of invoice using Form No. 04/SS-HDDT |
If the erroneous e-invoice has been handled by correction or replacement by the seller but then is found to have other errors | These errors shall be handled adopting the same method as the initial error |
If the issued invoice which does not necessarily bear form number, reference number or number contains error | The seller shall only correct the erroneous invoice without cancelling or replacing it |
If the value specified in the invoice is wrong | An increase ( “+” mark) or decrease ( “-“ mark) shall be specified in the invoice according to the actual value |
The supplementation of tax dossiers concerning corrected or replaced e-invoices | Carry out in accordance with regulations of the Law on tax administration |
What are the principles in handling of erroneous e-invoices in Vietnam according to Circular 78/2021/TT-BTC?
In case of discovering the errors on e-invoices in Vietnam, will sellers create an e-invoice to correct or issue a new e-invoice to replace the erroneous one?
Pursuant to Clause 2, Article 19 of Decree 123/2020/ND-CP on handling invoices with errors as follows:
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:
a) 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 by using Form No. 04/SS-HDDT provided in Appendix IA enclosed herewith, unless data about the erroneous unauthenticated e-invoice is not yet sent to the tax authority.
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……….”).
b2) 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).
c) In the civil aviation branch, ticket change/refund invoices are considered as correction invoices without bearing the text “Điều chỉnh tăng/giảm cho hóa đơn Mẫu số... ký hiệu... ngày... tháng... năm” (“Making an increase/decrease in the invoice form No…….., reference No……… dated…….”. Airlines are allowed to issue invoices in case of change/refund of tickets issued by their agents.
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Thus, depending on the errors of the authenticated e-invoice , the seller can choose to create an e-invoice to correct or issue an e-invoice to replace, or no invoice is required.
What is the guidance of the General Department of Taxation on handling erroneous e-invoices in Vietnam?
Pursuant to Official Dispatch 1647/TCT-CS in 2023, the General Department of Taxation guides the handling of e-invoices as follows:
Pursuant to the provisions at point b, clause 2, Article 19 of Decree 123/2020/ND-CP, points c, e, clause 1, Article 7 of Circular 78/2021/TT-BTC.
Pursuant to the above provisions, in Decision 1450/QD-TCT in 2021 and Decision 1510/QD-TCT in 2022 of the General Department of Taxation, the e-invoice data components are specified, accordingly:
(1) In case the seller chooses to handle the invoice already made by making an adjusted invoice, the seller will make a decrease in all information on the wrong line of goods and increase the line accordingly. correct goods (including: names of goods and services, units of calculation, quantity, unit prices, tax rates, untaxed amounts).
(2) In case the seller chooses to process the already made invoice by issuing a replacement invoice, the seller shall re-issue a new invoice with the invoice number, invoice symbol, invoice model symbol and full details. enough contents of the invoice to be replaced.
For both of the above cases, the adjusted or replaced invoice must contain the following information: “Correction/replacement of invoice Form No.... symbol... number... date... month .... year..." and in case the e-invoice has been made with errors and the seller has handled it in the form of adjustment or replacement as prescribed at point b, clause 2, Article 19 of Decree 123/2020/ND-CP, and then discover that the invoice continues to have errors, the next processing times the seller will follow the form applied when handling errors for the first time.
(3) In case the enterprise issues an incorrect e-invoice (referred to as F0 invoice), then the enterprise issues an adjustment or replacement invoice (referred to as an adjusted/replaced F1 invoice for FO invoice). and found that the F1 invoice is still wrong, then:
- If the adjustment method is selected: The enterprise issues the F2 invoice to adjust the F0 invoice (at this time, the F0 invoice has been adjusted by the F1 invoice).
- If the alternative method is selected: The enterprise issues an F2 invoice to replace the F1 invoice (at this time, the FO invoice has been replaced by the F1 invoice).
(4) For invoices made according to the provisions of Decree 51/2010/ND-CP, Decree 04/2014/ND-CP and guiding documents of the Ministry of Finance with errors, the enterprise shall make If the application is to be replaced as prescribed in Clause 6, Article 12 of Circular 78/2021/TT-BTC, the Tax Department will agree that the enterprise is not required to cancel the invoice made under Decree 51/2010/ND-CP do not have to send a report on the use of invoices because from July 1, 2022, Decree 51/2010/ND-CP, Decree 04/2014/ND-CP and Circular 39/2014/TT-BTC, Circulars amending and supplementing Circular 39/2014/TT-BTC have expired.
The seller shall notify the tax authority according to Form 04/SS-HDDT issued together with Decree 123/2020/ND-CP.
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