In Vietnam, is it necessary to destroy invoices purchased from tax authorities when using e-invoices?

In Vietnam, is it necessary to destroy invoices purchased from tax authorities when using e-invoices?

Pursuant to Article 25 of the Decree 123/2020/ND-CP stipulating handling of unused invoices purchased from tax authorities as follows: 

1. Any enterprise, business entity, household or individual business whose termination of TIN has been approved by the tax authority shall stop using invoices.

2. The supervisory tax authority shall notify the expiration of unused invoices of enterprises, business entities, household or individual businesses that no longer operate at registered locations or have deliberately suspend their business.

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.

As regulations above, when your enterprise switches to e-invoices, you shall destroy physical invoices purchased from tax authorities.

What are regulations on destruction of invoices in Vietnam?

Pursuant to Article 27 of the Decree 123/2020/ND-CP stipulating destruction of tax authority-ordered printed invoices as follows: 

1. Enterprises, business entities, household or individual businesses shall destroy their unused invoices. Invoices must be destroyed within 30 days from the date on which the destruction is notified to the tax authority. If an invoice is expired according to the tax authority’s notice (in case of enforcement of payment of tax debts), the relevant enterprise, business entity, household or individual business shall carry out the destruction of invoice within 10 days from the date of the tax authority’s notice or the date on which the lost invoice is found.

Invoices issued by accounting units shall be destroyed in accordance with regulations of the Law on accounting.

Invoices which are not yet issued but are exhibits of lawsuit cases shall not be destroyed and must be handled in accordance with regulations of laws.

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

a) The enterprise, business entity, household or individual business shall make the list of invoices to be destroyed.

b) The enterprise or business entity shall establish an invoice destruction council. The invoice destruction council is comprised of senior representatives and representatives of accounting department. The household or individual business is not required to establish an invoice destruction council.

c) The invoice destruction record shall bear signatures of members of the invoice destruction council who shall assume legal liability for any mistakes thereof.

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.

3. Destruction of invoices by tax authorities

a) Tax authorities shall take charge of destroying invoices which are printed according to orders of a Provincial Department of Taxation, are not sold or issued but are no longer used.

b) The General Department of Taxation shall promulgate procedures for destruction of invoices printed according to orders of Provincial Departments of Taxation.

Best regards!