Is it possible to issue an invoice for many months at once in Vietnam?

Is it possible to issue an invoice for many months at once in Vietnam?

In Clause 1, Article 9 of Decree 123/2020/ND-CP, there are regulations on 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 buyers, 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.

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According to this Article, the time of invoice for the sale of goods is the time of transfer of ownership or rights to use the goods to the buyer, regardless of whether money has been collected or not.

In addition, the time of invoicing for service provision is the time of completion of service provision, regardless of whether money has been collected or not.

Thus, the time of invoice is the time of transfer of ownership or rights to use the goods or the time of completion of service provision, regardless of whether money has been collected or not. Issuing an invoice at once for multiple months is not in accordance with regulations on when to issue invoices.

Is it possible to issue an invoice for many months at once in Vietnam? (Image from the Internet)

Which household business are allowed to use electronic invoices in Vietnam?

In Clause 2, Article 6, Circular 78/2021/TT-BTC stipulates that household businesses and individual businesses that use e-invoices include:

- A household business or individual business that pays tax according to the tax declaration method is required to issue e-invoices;

- If a household business or individual business that pays fixed tax needs to issue invoices, tax authority shall provide it with e-invoices separately on an on-demand basis;

- If a household business or individual business that declares taxes as they arise needs to issue invoices, tax authority shall provide it with e-invoices separately on an on-demand basis.

In what cases do I have to suspend using electronic invoices in Vietnam?

In Clause 1, Article 16 of Decree 123/2020/ND-CP, there are 7 cases where electronic invoices must be suspended as follows:

(1) An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;

(2) An enterprise, business entity, other organization, household business or individual business does not operate at the registered location as verified and announced by the tax authority;

(3) An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;

(4) An enterprise, business entity, other organization, household business or individual business is banned from using e-invoices by the tax authority for the purpose of enforcement of payment of tax debts;

(5) E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;

(6) E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;

(7) A business registration authority or competent authority requests an enterprise to suspend operation in a conditional business line after finding that this enterprise does not fully satisfy the business conditions prescribed by law.

If the tax authority, through inspection, discovers that the enterprise is established for the purpose of trade and use of illegal e-invoices or illegal use of e-invoices for tax evasion purposes, the enterprise shall face administrative penalties and be suspended from use of e-invoices according to the decision issued by the tax authority.

Best regards!