Instructions for making an invoice in case the buyer returns goods due to incorrect specifications and quality in 2023 in Vietnam

Instructions for making an invoice in case the buyer returns goods due to incorrect specifications and quality in 2023 in Vietnam

Pursuant to Official Letter 8999/CTTPHCM-TTHT of 2023, there are instructions for making invoices in case the buyer returns the goods due to incorrect specifications and quality as follows:

- When selling goods or providing services, the seller must issue an invoice to deliver to the buyer and must write all contents on the invoice as prescribed. The electronic invoice must follow the standard data format of the tax authority.

Note: Invoicing includes the following cases:

+ Goods and services used for promotion, advertising, and sample products;

+ Goods and services used for giving, giving, giving, exchanging, paying wages for employees and for internal consumption (except for goods circulated internally to continue the production process);

+ Exporting goods in the form of lending, lending or returning goods.

- In case an organization or individual purchases goods, the seller has issued an invoice and the buyer has received the goods, but then the buyer discovers that the goods are not in accordance with the specifications and quality, and must return all or part of the goods:

The seller issues a return invoice to reduce or replace the invoice, and the seller and buyer have an agreement to specify the returned goods.

Note: For goods purchased before January 1, 2023 subject to VAT reduction at the rate of 8%, after December 31, 2022, the buyer returns the goods due to improper specifications and quality, the seller issues an invoice to return the goods at the VAT rate of 8%.

What are prohibited acts related to invoices and records in Vietnam?

Pursuant to Article 5 of the Decree 123/2020/NĐ-CP stipulating prohibited acts related to invoices and records as follows:

For tax officials:

- Disturb or cause difficulties to organizations/individuals buying invoices/records;

- Protect or enter into collusion with organizations/individuals to use illegal invoices/records;

- Take bribes when carrying out invoice-related inspections.

For goods sellers, service providers, organizations and individuals with related rights and obligations:

- Perform deceitful acts such as use of illegal invoices or illegal use of invoices;

- Obstruct tax officials in performing their tasks, including acts of obstruction that harm the health or dignity of tax officials who are performing invoice/record-related inspections;

- Illegally access, falsify or destroy invoice/record information systems;

- Give bribes or perform other invoice/record-related acts for obtaining illegal benefits.

What are regulations on invoicing time for provision of services in Vietnam?

Pursuant to Article 9 of the Decree 123/2020/NĐ-CP stipulating invoicing time as follows:

Invoicing time

1. Invoices for sale of goods (including the sale of state-owned property, property confiscated and put into state fund, and the sale of national reserve goods) shall be issued when the right to own or use goods is transferred to buys, whether the payment of the invoiced amount is made or not.

2. Invoices for provision of services shall be issued upon completion of the provision of services, whether the payment of the invoiced amount is made or not. In case a service is provided with payments collected in advanced or during the provision of that service, an invoice shall be issued when each payment is collected (excluding payments of deposited amounts or advance payments which are made to ensure the execution of contracts for provision of accounting, audit, financial consulting or taxation services; valuation services; technical survey and design services; supervision consulting services; investment construction project formulation services).

3. In case where multiple deliveries are required, or each goods item or service phase is accepted, it shall be mandatory to issue an invoice showing quantity, value of goods or service for each respective delivery or acceptance.

...

As regulations above, invoices for provision of services shall be issued upon completion of the provision of services, whether the payment of the invoiced amount is made or not.

- In case a service is provided with payments collected in advanced or during the provision of that service, an invoice shall be issued when each payment is collected.

The above invoicing time excludes payments of deposited amounts or advance payments which are made to ensure the execution of contracts for provision of accounting, audit, financial consulting or taxation services; valuation services; technical survey and design services; supervision consulting services; investment construction project formulation services.

Best regards!