What to do when invoices to be made out under authorization are unauthenticated invoices in Vietnam?
What to do when invoices to be made out under authorization are unauthenticated invoices in Vietnam?
Pursuant to Clause 7, Article 4 of Decree No. 123/2020/ND-CP stipulating as follows:
Rules for issuance, management and use of invoices and records
…
7. Good sellers or service providers that are enterprises, business entities or other organizations are allowed to authorize third parties to issue e-invoices for their sale of goods or provision of services. An invoice issued by a third party under authorization must still bear the name of the seller that is the authorizing party. The authorizing party and the authorized party must enter into a written authorization which must contain adequate information on invoices to be made under authorization (purposes and duration of authorization, and method of payment for invoices made out under authorization). Such authorization must be notified to tax authorities when applying for use of e-invoices. In case invoices to be made out under authorization are unauthenticated invoices, the authorizing party shall transmit e-invoice data to tax authorities through the e-invoice service provider. The Ministry of Finance shall provide specific guidance on this content.
...
Thus, when invoices to be made out under authorization are unauthenticated invoices, the authorizing party shall transmit e-invoice data to tax authorities through the e-invoice service provider.
What to do when invoices to be made out under authorization are unauthenticated invoices in Vietnam?
What are the rules for authorization to issue e-invoices in Vietnam?
Pursuant to Clause 1, Article 3 of Circular No. 78/2021/TT-BTC stipulating as follows:
Authorization to issue e-invoices in Vietnam
1. Authorization rules
a) Good sellers or service providers that are enterprises, business entities or other organizations are allowed to authorize third parties that are related parties of the sellers, eligible to use e-invoices, and are not suspended from use of e-invoices as prescribed in Article 16 of the Decree No. 123/2020/ND-CP to issue e-invoices for their sale of goods or provision of services. Related parties are defined in the Law on Tax Administration;
b) The authorization must be made in writing (either contract or agreement) between the authorizing party and the authorized party;
c) Such authorization must be notified to the tax authority when applying for use of e-invoices;
d) The e-invoice issued by the authorized party is an e-invoice with or without the tax authority’s identification code but must bear the name, address and TIN of the authorizing party and those of the authorized party;
dd) The authorizing party and the authorized party shall notify such authorization to issue invoices to buyers of goods/services by publishing information thereof on their websites or on mass media. When the authorization expires or is terminated before its expiration date as agreed upon between two parties, the notices of such authorization published on the websites of the authorizing party and the authorized party or on mass media must be canceled;
e) In case invoices to be made out under authorization are e-invoices without the tax authority’s identification code (hereinafter referred to as “unauthenticated invoices”), the authorizing party shall transmit e-invoice data to their supervisory tax authority directly or through an e-invoice service provider;
g) The authorized party shall issue e-invoices with authorization according to actual demands, agreements made with the authorizing party, and the rules set out in Clause 1 of this Article.
...
Thus, the authorization to issue e-invoices is implemented based on the above rules.
What information must the contract for authorization to issue e-invoices contain?
Pursuant to Clause 2, Article 3 of Circular No. 78/2021/TT-BTC stipulating as follows:
Authorization to issue e-invoices
…
2. Authorization contract or agreement
a) The authorization contract or agreement must include adequate details about the authorizing party and the authorized party (including name, address, TIN and digital certificate), information about the e-invoice issued with authorization (type, form number and reference number of the invoice); purposes of authorization; duration of authorization; methods of payment for invoices issued with authorization (including the responsibility to make payment for the invoiced goods/services);
b) The authorizing party and the authorized party shall retain the authorization contract or agreement, and present them at the request of competent authorities.
Thus, the authorization contract or agreement must include adequate details about:
- The authorizing party and the authorized party (including name, address, TIN and digital certificate);
- Information about the e-invoice issued with authorization (type, form number and reference number of the invoice);
- Purposes of authorization; duration of authorization;
- Methods of payment for invoices issued with authorization (including the responsibility to make payment for the invoiced goods/services).
Nguyễn Thị Hồng Nhung