Can buyers continue to use tax authority-ordered printed invoices if they switch to using e-invoices in Vietnam?

Can buyers continue to use tax authority-ordered printed invoices if they switch to using e-invoices in Vietnam?

According to Clause 2, Article 24 of Decree 123/2020/ND-CP on sale of invoices printed by tax authorities as follows:

2. Invoices shall be sold to eligible buyers on a monthly basis.

No more than a book of invoices, including 50 invoice numbers of a type, shall be sold to an buyer for the first time. In case the quantity of invoices sold in the first time is not enough for the buyer to use until the end of month, the tax authority shall decide the quantity of invoices sold to the buyer in the following time based on the time and quantity of used invoices.

With regard to the following purchases of invoices, after checking the use of invoices and tax declaration and payment, and based on the written request for purchase of invoices, the tax authority shall sell invoices to the buyer within a day. The quantity of invoices sold to the buyer shall not exceed that sold to it in the previous month.

If the buyer wants to use e-invoices, it must terminate the use of tax authority-ordered printed invoices from the date of commencement of use of e-invoices in accordance with the provisions in Article 15 hereof.

In case a household or individual business wishes to use separate invoices instead of booked invoices, the tax authority shall separately provide e-invoices in accordance with the provisions in Clause 2 Article 13 hereof.

Pursuant to Clause 3, Article 25 of Decree No. 123/2020/ND-CP stipulating handling of unused invoices purchased from tax authorities:

3. Before using e-invoices, enterprises, business entities, or household or individual businesses must destroy physical invoices purchased from tax authorities in accordance with the provisions in Article 27 hereof.

According to this Article, enterprises, business entities, or household or individual businesses that switch to using e-invoices must stop using tax authority-ordered printed invoices from the date they start using e-invoices according to regulations in Vietnam.

Are household businesses required to have a decision on establishment of the invoice destruction council in tax authority-ordered printed invoice dossiers in Vietnam?

At Point d, Clause 2, Article 27 of Decree 123/2020/ND-CP stipulating destruction of tax authority-ordered printed invoices is as follows:

2. Invoices of enterprises, business entities, household or individual businesses shall be destroyed as follows:

d) Invoice destruction dossier includes:

- The decision on establishment of the invoice destruction council, except household or individual businesses;

- The list of invoices to be destroyed, including: Name, form number and reference number of the invoice, number of destroyed invoices (from number….to number…., or number of each invoice if the invoice numbers are not continuous);

- The invoice destruction record;

- The notice of invoice destruction result includes: type, reference number and quantity of destroyed invoice, from number…..to number….., reasons, date and time, and method of destruction, using Form No. 02/HUY-HDG in Appendix IA enclosed herewith.

The invoice destruction dossier shall be kept by the enterprise, business entity, household or individual business using invoices. The notice of invoice destruction result is made into 02 copies of which one copy is kept on file, and the other is sent to the supervisory tax authority within 05 working days from the date of invoice destruction.

According to the above regulations in Vietnam, household businesses do not need to have a decision on establishment of the invoice destruction council in tax authority-ordered printed invoice dossiers in Vietnam.

If there are issues with authenticated e-invoices of tax authority, can tax authority-ordered printed invoices be used in Vietnam?

According to Article 20 of Decree 123/2020/ND-CP guiding handling of issues related to authenticated e-invoices as follows:

1. If the seller is unable to use authenticated e-invoices because of certain issues, the seller shall inform the tax authority or relevant service provider for assistance. While the issues are being fixed, the seller may use authenticated e-invoices at the tax authority’s premises.

2. In case of issues of the tax authority’s authentication code issuing system, the General Department of Taxation shall use the backup system and make an announcement of such issues on its website. The General Department of Taxation may authorize some qualified e-invoice service providers to grant authentication codes while the issues are being fixed.

While the issues are being fixed, the tax authority may sell tax authority-ordered printed invoices to some organizations and individuals. After the issues are successfully fixed, the tax authority shall give a notice to relevant organizations and individuals to continue their use of authenticated e-invoices and submit reports (using form No. BC26/HDG in Appendix IA enclosed herewith) on their use of physical invoices purchased from the tax authority within 02 working days from the date specified in the tax authority’s notice.

3. In case of issues of the system of e-invoice service provider, the service provider shall inform the sellers and request the General Department of Taxation for assistance. The service provider shall quickly fix the issues and assist sellers in creating e-invoices and sending them to the tax authority for authentication as soon as possible.

4. In case the web portal of the General Department of Taxation is unable to receive e-invoice data due to technical issues, the General Department of Taxation shall post a notice on its web portal. The organizations, enterprises and e-invoice service providers shall not transmit e-invoice data to tax authorities during this period.

Within 2 working days from the day on which the General Department of Taxation posts another notice that its web portal is operational, relevant organizations and e-invoice service providers shall transmit e-invoice data to tax authorities. Transmission of e-invoice data to tax authorities after a notice of technical issues is posted on the web portal of General Department of Taxation will not be considered to be late.

Thus, when there are issues with authenticated e-invoices of tax authority, but it has not been resolved, the tax authority will be responsible for selling tax authority-ordered printed invoices to some organizations and individuals. After using, the affected individuals and organizations will submit reports (using form No. BC26/HDG in Appendix IA enclosed herewith) on their use of physical invoices purchased from the tax authority in Vietnam.

Best Regards!