What is the time for issuing invoice in case of export entrustment in Vietnam?

What are invoices for export of goods and services to foreign countries in Vietnam?

Pursuant to Article 8 of the Decree 123/2020/NĐ-CP stipulating invoice types as follows:

Invoice types

Invoices prescribed herein are classified into the following types:

1. Value-added tax (VAT) invoice is an invoice which may be used by organizations making VAT declaration by employing the credit-invoice method for the following activities:

a) Domestic sale of goods or provision of services;

b) Provision of international transport services;

c) Export of goods to free trade zones and other cases considered as export of goods;

d) Export of goods or provision of services in a foreign market.

2. Sales invoice is an invoice which may be used by the following organizations and individuals:

a) Organizations or individuals that declare and calculate VAT by employing direct method for the following activities:

- Domestic sale of goods or provision of services;

- Provision of international transport services;

- Export of goods to free trade zones and other cases considered as export of goods;

- Export of goods or provision of services in a foreign market.

b) Organizations or individuals in free trade zones that sell goods or provide services to the domestic market, sell goods or provide services to other organizations/individuals in free trade zones, or sell goods or provide services to a foreign market. In such cases, invoices must bear the phrase “Dành cho tổ chức, cá nhân trong khu phi thuế quan” ("For organizations/individuals in free trade zones”).

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As regulations above, invoices for export of goods and services to foreign countries in Vietnam are as follows:

- Value-added tax (VAT) invoice is an invoice which may be used by organizations making VAT declaration by employing the credit-invoice method for export of goods or provision of services in a foreign market.

- Sales invoice is an invoice which may be used by organizations or individuals that declare and calculate VAT by employing direct method for export of goods or provision of services in a foreign market.

What is the time for issuing invoice in case of export entrustment in Vietnam? - Source: Internet

What is the time for issuing invoice in case of export entrustment in Vietnam?

Pursuant to Clause 3 Article 13 of the Decree 123/2020/NĐ-CP stipulating as follows:

Use of e-invoices in sale of goods and provision of services

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3. Application of e-invoices, delivery and internal transfer notes, and delivery notes for goods sent to sales agents in some cases:

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b) Export entrustment:

- When delivering the goods to the trustee, the trustor shall use the delivery and internal transfer note.

- After the customs authority confirms that the goods have been exported in reality and the trustor has confirmed the quantity and value of goods exported in reality, the trustor shall issue an electronic VAT invoice, which will be used for declaring VAT and claiming VAT refund, or issue an electronic sales invoice. The trustee shall provide the electronic VAT invoice or electronic sales invoice for the foreign buyer.

c) Use of electronic VAT invoices by exporters declaring and paying VAT by following credit-invoice method (including export processors):

When delivering goods to the border checkpoint or customs post where export procedures are followed, the exporter shall use the delivery and internal transfer note as document for goods circulation. After the export procedures are completed, the exporter shall issue a VAT invoice for the exports.

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Therefore, in the case of agency export of goods, the time of issuing an electronic invoice is determined as the time when the goods are actually exported with confirmation from the customs authority.

When is the time to issue an invoice for services in Vietnam?

Pursuant to Clause 2 and 3, Article 9 of the Decree 123/2020/NĐ-CP stipulating invoicing time as follows:

Invoicing time

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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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Therefore, the time to issue an invoice for services is determined as follows:

- For the provision of services:

+ The time to issue an invoice is the date on which the services are actually provided, regardless of whether the payment has been received or not.

+ The time to issue an invoice is the date on which the payment is received in the case where the service provider receives payment before or during the provision of services.

- For the delivery of individual items or stages of services: The time to issue an invoice is the date of each delivery of the volume and value of services.

Best regards!