What are instructions for submitting form 04/SS-HDĐT notifying electronic invoices with errors to the tax authority in Vietnam?
What are instructions for submitting form 04/SS-HDĐT notifying electronic invoices with errors to the tax authority in Vietnam? Please advise
When is deadline for submitting form 04/SS-HDDT notifying errors in electronic invoices in Vietnam?
In Clause 1, Article 7, Circular 78/2021/TT-BTC has regulations on handling of erroneous e-invoices and e-invoice datasheets sent to tax authorities as follows:
1. Erroneous e-invoices:
a) If the issued e-invoice contains errors and requires a new tax authority’s identification code or the erroneous e-invoice needs to be corrected or replaced as prescribed in Article 19 of Decree No. 123/2020/ND-CP, the seller shall use Form No. 04/SS-HDDT provided in Appendix No. IA enclosed with Decree No. 123/2020/ND-CP to notify the correction of each or multiple erroneous e-invoices, and send a notice using Form No. 04/SS-HDDT to the tax authority by the last day of the VAT declaration period in which erroneous e-invoices are handled;
b) If an invoice has been issued when receiving advance payment or during the service provision as prescribed in Clause 2 Article 9 of Decree No. 123/2020/ND-CP but then the service provision is cancelled or terminated, the seller shall cancel the issued e-invoice and notify the tax authority of such cancellation of invoice using Form No. 04/SS-HDDT provided in Appendix No. IA enclosed with Decree No. 123/2020/ND-CP;
c) If the erroneous e-invoice has been handled by correction or replacement by the seller as prescribed in Point b Clause 2 Article 19 of Decree No. 123/2020/ND-CP, but then is found to have other errors, these errors shall be handled adopting the same method as the initial error;
d) The seller shall send a notice of results of examination of erroneous e-invoices (using the Form No. 04/SS-HDDT in Appendix IA enclosed with Decree No. 123/2020/ND-CP) to the tax authority by the deadline specified in the notice form No. 01/TB-RSDT provided in Appendix IB enclosed with Decree No. 123/2020/ND-CP; the seller’s notice must also indicate the ground for examination which is the tax authority’s notice form No. 01/TB-RSDT (including number and date of the notice);
dd) If the issued invoice which does not necessarily bear form number, reference number or number contains error, the seller shall only correct the erroneous invoice without cancelling or replacing it;
e) If the value specified in the invoice is wrong, an increase ( “+” mark) or decrease ( “-“ mark) shall be specified in the invoice according to the actual value.
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Thus, the deadline for submitting form 04/SS-HDĐT notifying electronic invoices with errors is any time. However, no later than the last day of the value-added tax declaration period when an adjusted electronic invoice arises, the seller must send a notice of errors in the electronic invoice to the tax authority in Vietnam.
What are instructions for submitting form 04/SS-HDĐT notifying electronic invoices with errors to the tax authority in Vietnam?
In Official Dispatch 1647/TCT-CS of 2023, there are instructions on how to handle electronic invoices that have been issued with errors as follows:
Regarding the processing of electronic invoices that have been made with errors
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- Regarding sending Form 04/SS-HDĐT:
Pursuant to the provisions of Clause 2, Article 156 of the Law on Promulgation of Legal Documents 2015.
In case the enterprise processes invoices with errors according to the provisions of Clause 1, Point a, Clause 2, Article 19 of Decree No. 123/2020/ND-CP and Clause 6, Article 12, Circular No. 78/2021/TT- For BTC, the enterprise sends Form 04/SS-HDĐT to the tax authority.
In case of processing an invoice with errors as prescribed in Point b, Clause 2, Article 19 of Decree No. 123/2020/ND-CP, the taxpayer does not have to send an error notice according to Form No. 04/SS-HDĐT to the agency.
In Clause 1 and Clause 2, Article 19 of Decree 123/2020/ND-CP, there are regulations on handling of erroneous invoices as follows:
Handling of erroneous invoices
1. When a seller discovers that the authenticated e-invoices which have not been sent to buyers contain errors, the seller shall inform the tax authority by using the Form No. 04/SS-HDDT in Appendix IA enclosed herewith of cancellation of such erroneous authenticated e-invoices, and prepare new e-invoices with digital signatures for submission to the tax authority for its issue of new authentication codes in place of the previous ones before sending them out to buyers. The tax authority shall cancel the erroneous authenticated e-invoices on its system.
2. If an authenticated or unauthenticated e-invoice which has been sent to the buyer is detected by either the buyer or seller to contain errors, it shall be handled as follows:
a) If the buyer’s name or address is wrong but the TIN and other information are correct, the seller shall inform the buyer of the errors and is not required to re-issue the invoice. The seller shall inform the tax authority of the erroneous e-invoice by using Form No. 04/SS-HDDT provided in Appendix IA enclosed herewith, unless data about the erroneous unauthenticated e-invoice is not yet sent to the tax authority.
b) If the information about TIN, amount, tax rate, tax amount or goods on the invoice is wrong, the error shall be handled by adopting one of the following methods:
b1) The seller shall create an e-invoice to correct the erroneous one. The seller and the buyer shall prepare a document specifying the errors as agreed upon between them before the seller issues a correction e-invoice.
The correction e-invoice shall bear the text “Điều chỉnh cho hóa đơn Mẫu số... ký hiệu... số... ngày... tháng... năm” (“This invoice corrects the invoice form No……….., reference No………, No………dated……….”).
b2) The seller issues a new e-invoice to replace the erroneous one. The seller and the buyer shall prepare a document specifying the errors as agreed upon between them before the seller issues a new e-invoice to replace the erroneous one.
The replacing invoice shall bear the text “Thay thế cho hóa đơn Mẫu số... ký hiệu... số... ngày... tháng... năm” (“This invoice replaces the invoice form No……….., reference No………, No………dated……….”).
The seller shall add the digital signature on the e-invoice which is issued to correct or replace the erroneous one, then send it to the buyer (in case of unauthenticated invoices) or send it to the tax authority for its issue of a new authentication code (in case of authenticated invoices).
c) In the civil aviation branch, ticket change/refund invoices are considered as correction invoices without bearing the text “Điều chỉnh tăng/giảm cho hóa đơn Mẫu số... ký hiệu... ngày... tháng... năm” (“Making an increase/decrease in the invoice form No…….., reference No……… dated…….”. Airlines are allowed to issue invoices in case of change/refund of tickets issued by their agents.
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Thus, the way to submit form 04/SS-HDDT notifying electronic invoices with errors to the tax authority in Vietnam is as follows:
- Enterprises must send Form 04/SS-HDĐT to the tax authority in the following cases:
+ There are errors in the electronic invoice that has been issued with a code from the tax authority and has not yet been sent to the buyer;
+ Errors in the buyer's name and address but not the wrong tax code, other contents are not errors (except in cases where the electronic invoice does not have the tax authority's code and has errors and the invoice data has not been sent to the buyer).
- Taxpayers do not have to send error notices according to Form No. 04/SS-HDDT to the tax authority in case they have to adjust or replace electronic invoices created with incorrect tax codes; errors in the amount recorded on the invoice, errors in the tax rate, tax amount or goods recorded on the invoice are not of the correct specification or quality.
How much is penalty for late submission of form No. 04/SS-HDĐT regarding notification of invoice errors in Vietnam?
In Article 29 of Decree 125/2020/ND-CP, corrected by Clause 2 of Official Dispatch 29/CP-KTTH of 2021 , there are regulations on late sending of form No. 04/SS-HDĐT on notification of invoices with errors. as follows:
Penalties for violations against regulations on the act of preparing and delivering invoice-related notices, reports
1. Cautions shall be imposed for the act of submitting notices or reports regarding invoices from 1 to 5 days after expiry of the regulated submission time limit under mitigating circumstances.
2. Fines ranging from VND 1,000,000 to VND 3,000,000 shall be imposed for one of the following violations:
a) Submitting notices or reports regarding invoices from 1 to 10 days after expiry of the regulated submission time limit, except the case prescribed in clause 1 of this Article;
b) Issuing invoices wrongly or those whose contents are not fully consistent with those stated in lawful notices and reports regarding invoices submitted to tax authorities.
If entities or persons, by themselves, detect errors and re-issue substitute notices or reports in accordance with regulations to their supervisory tax authorities before issuance of decisions to carry out tax inspections or reviews at the violating taxpayer’s offices by tax authorities or competent authorities, they shall not be sanctioned.
3. Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for the act of submitting notices or reports regarding invoices to tax authorities from 11 to 20 days after expiry of the regulated submission time limit.
4. Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for the act of submitting notices or reports regarding invoices to tax authorities from 21 to 90 days after expiry of the regulated submission time limit.
5. Fines ranging from VND 5,000,000 to VND 15,000,000 shall be imposed for one of the following violations:
a) Submitting notices or reports regarding invoices to tax authorities at least 91 days after expiry of the regulated submission time limit;
b) Failing to submit notices and reports regarding invoices to tax authorities as legally required.
6. If any act of violation arising from the preparation and delivery of invoice-related notices or reports is regulated in Article 23 and 25 herein, regulations of this Article shall not be applied for the imposition of administrative penalties.
7. Remedies: Compelling the preparation and delivery of invoice-related notices or reports with respect to the acts specified in point b of clause 2 and point b of clause 5 of this Article.
In Clause 4, Article 7 of Decree 125/2020/ND-CP, there are regulations on fines as follows:
Forms of sanctions, remedial measures and principles for applying fines when sanctioning administrative violations of taxes and invoices
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4. Principles of determination of fine amounts
a) The fine amounts specified in Article 10, 11, 12, 13, 14 and 15; clause 1 and 2 of Article 19; and Chapter III herein, shall be those applied to violating entities.
Taxpayers that are family households or sole proprietorship households shall be fined the same as violating persons.
Thus, businesses that are late in sending form 04/SS-HDĐT on notification of electronic invoices containing errors will be fined accordingly, depending on extenuating circumstances and the number of days overdue, which can be up to 15 million dong.
Note: Violations of making, sending notices, and reporting on invoices as prescribed in Articles 23 and 25 of Decree 125/2020/ND-CP do not apply the above penalty level when sanctioning administrative violations.
Best regards!
