Instructions on procedures for destroying e-invoices in Vietnam

Hello, Lawnet would like to answer as follows:

1. Cases of destroying e-invoices in Vietnam

Case 1: The electronic invoice is written incorrectly, has been issued a code, but has not been sent to the buyer as prescribed in Clause 1 of Article 19 of Decree 123/2020/ND-CP.

- If the seller discovers that the electronic invoice that has been issued with a code from the tax authority has errors, but the seller has not sent it to the buyer,
At this time, the seller will carry out the procedure to cancel the electronic invoice that was created with errors and issue a new invoice.

- For e-invoices that have been sent to the buyer, the invoice cannot be canceled, but only an adjustment or replacement invoice can be issued.

Case 2: When converting from old sample invoices to e-invoices according to Circular 78/2021/TT-BTC

When converting to e-invoices according to Circular 78, if an enterprise still has paper invoices or e-invoices in the old form, the enterprise must destroy all of these invoices.

2. Procedures for destroying e-invoices in Vietnam

Case 1: The electronic invoice has been issued with a code from the tax authority but has not yet been sent to the buyer with errors

When discovering that an electronic invoice has been issued with an incorrect code, but the seller has not sent it to the buyer, the invoice must be canceled. Specifically, the procedure for canceling invoices is specified as follows:

Step 1: Report erroneous invoices to the tax authority

The seller shall notify the tax authority according to Form No. 04/SS-HDDT Appendix IA Decree 123/2020/ND-CP regarding destroying e-invoices with erroneous codes and creating new e-invoices, digitally signing them and sending them to the tax authority to issue new invoice codes to replace the created invoices to send to the buyer.

Form No. 04/SS-HDDT: Download

Step 2: Create a new electronic invoice

In this step, the accountant carries out the procedure for creating a new electronic invoice as usual, digitally signing it and sending it to the tax authority to issue a new invoice code to replace the created invoice to send to the buyer.

Step 3: Cancel the invoice that has reported errors

After completing the above steps, select the invoice with errors and select delete/cancel this invoice.

Step 4: Make a record of agreement to cancel the invoice

To avoid risks when tax authorities come in to inspect and examine, businesses should keep a record confirming cancellation of invoices with the buyer.

Step 5: Look up

To make sure the invoice has been canceled, businesses check to see if they have received notification of acceptance from the tax authority, and visit http://tracuuhoadon.gdt.gov.vn/ to check the status of that invoice to make sure.

Case 2: Paper invoices remain when converting to e-invoices according to Decree 123/2020/ND-CP

Pursuant to the provisions of Article 27 of Decree 123/2020/ND-CP guiding the destruction of printed invoices purchased from tax authorities, the order and procedures for destroying paper invoices are carried out as follows:

Documents for destruction of invoices include:

- Decision to establish an Invoice Destruction Council (except for business households and individuals)

- Inventory of invoices to be destroyed

In it, the following information must be recorded in detail: Invoice name, invoice model number, invoice symbol, and number of canceled invoices (from number... to number... or detail each invoice number if the invoice number to be canceled is not consecutive);

- Record of invoice destruction;

- Notification of invoice cancellation results

Notice of invoice cancellation results is made according to Form No. 02/HUY-HDG, Appendix IA issued with Decree 123/2020/ND-CP.

Form No. 02/HUY-HDG: Download

Procedures for destroying invoices include the following steps:

Step 1: Establish an Invoice Destruction Council (except for business households and individuals)

The invoice cancellation council must have leadership representatives and accounting department representatives from the business organization.

Step 2: Make an inventory of invoices that need to be destroyed.

Step 3: Make a record of the invoice cancellation.

Members of the Invoice Cancellation Council must sign the invoice destruction record and are responsible before the law for any errors.

Step 4: Make notification of invoice cancellation results

- Quantity: 2 copies, one copy is kept, one copy is sent to the directly managing tax agency

- Time limit for sending notification of results: no later than 5 days from the date of performing invoice destruction procedures.

When businesses cancel paper invoices, they must comply with the regulations on invoice cancellation deadlines specified in Clause 1, Article 27 of Decree 123/2020/ND-CP:

- The deadline for canceling an invoice is thirty (30) days at the latest from the date of notification to the tax authority.

- In cases where the tax authority has notified the invoice that it is no longer valid (except in cases where the notification is due to tax debt enforcement measures), enterprises must destroy invoices. The deadline for canceling invoices is ten (10) days at the latest from the date the tax authority announces the end-of-use value or from the date the lost invoice is recovered.

3. Penalties for violating regulations on destroying e-invoices in Vietnam

According to the provisions of Article 27 of Decree 125/2020/ND-CP, the penalty levels for violations of the regulations on the destruction of invoices are as follows:

Article 27. Penalties for violations against regulations on cancellation, destruction or elimination of invoices

1. Penalties in the form of cautions shall be imposed for the act of cancelling or destroying invoices from 1 to 5 days after expiry of the regulated time limit under mitigating circumstances.

2. Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for one of the following violations:

a) Cancelling invoices released but not issued, or invalidated invoices, in breach of regulations.

b) Failing to cancel invoices released but not issued yet, or invalidated invoices, or failing to cancel invoices purchased from tax authorities but expired;

c) Cancelling or destroying invoices from 1 to 10 working days after expiry of the regulated time limit, except the case prescribed in clause 1 of this Article.

3. Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

a) Cancelling or destroying invoices at least 11 working days after expiry of the regulated time limit;

b) Failing to cancel or destroy invoices in accordance with laws;

c) Failing to cancel e-invoices containing defects after being issued after expiry of the time limit for tax authorities’ issuing notification of these defects to sellers;

d) Failing to cancel externally ordered invoices not released yet but no longer used according to regulations;

dd) Cancelling or destroying invoices in breach of procedures or processes prescribed by laws;

e) Destroying invoices though these invoices are not classified as those subject to destruction under laws.

4. Remedies: Compelling the cancellation or destruction of invoices with respect to the acts specified in point b of clause 2, point b, c and d of clause 3 of this Article.

Thus, a fine ranging from 2,000,000 VND to 8,000,000 VND may be imposed depending on the violation of regulations on the destruction of invoices. In addition, the subject is forced to destroy invoices to take remedial measures.

Key word: invoice | e-invoice | in Vietnam | destroying e-invoices | Vietnam |

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