Solutions for Handling Errors and Mistakes on Sales Invoices

When to eliminate an invoice?

- When an invoice has been issued and an error is discovered, and neither the buyer nor the seller has declared tax for that invoice.

+ If the invoice has not been delivered to the customer (even if it has been detached from the stub but not yet delivered to the customer): Clip the three parts of the invoice together, cross out all three parts and mark "eliminated," issue a replacement invoice.

+ If the invoice has been delivered to the customer: Create a record of withdrawal of the invoice and clip the three parts of the invoice together, cross out all three parts and mark "eliminated," issue a replacement invoice.

+ The date on the replacement invoice may differ from the date on the eliminated invoice, and VAT accounting must be declared according to the date on the replacement invoice.

- The invoice is retrieved in cases where the buyer is not subject to invoices and returns the goods sold.

+ Create a record clearly stating the reason for the return of goods.

+ Create a record of invoice retrieval.

+ Clip the three parts of the invoice together and mark "eliminated."

- Invoice usage report: The eliminated invoice is listed according to the number of eliminated invoices under item 15 in the invoice usage report.

When to create a record of invoice adjustment?

- When an invoice has been issued and an error is discovered and one of either the buyer or the seller has declared tax.

- Errors discovered are errors in the following criteria: the buyer’s name, the buyer’s unit name, the buyer’s address.

- It is possible to create one adjustment record for multiple invoices with errors with the same customer.

When to issue an adjustment invoice?

- When an invoice has been issued and delivered to the buyer, goods or services have been delivered, both the seller and the buyer have declared tax, and an error is then discovered, the seller and the buyer must create a record or obtain a written agreement detailing the error, and the seller must issue an adjustment invoice.

- The adjustment invoice must not contain negative numbers (-).

When to cancel an invoice?

- Printed invoices with printing errors, duplicates, or excess must be canceled before liquidating the contract for printing invoices.

- Invoices that are no longer in use must be canceled.

- The tax authority notifies that the invoice is no longer valid, except for notifications due to tax debt enforcement measures.

- Invoice cancellation procedure:

+ Create a list of invoices to be canceled, detailing the name, symbol, and quantity of invoices to be canceled.

+ Establish an invoice cancellation council (the council must include representatives from the management board and the accounting department). If it is a business household or individual business, it is not necessary to establish an invoice cancellation council.

+ Proceed to cancel the invoices.

+ Create an invoice cancellation record with the signatures of all members of the invoice cancellation council.

+ Create a notification of the invoice cancellation result using form TB03/AC issued under Circular 39/2014/TT-BTC, and send it to the tax authority within 5 days from the invoice cancellation date.

- Invoice cancellation dossier

+ Decision to establish the invoice cancellation council.

+ List of invoices to be canceled.

+ Invoice cancellation record.

+ Invoice cancellation result notification (form TB03/AC).

The above contents are based on the regulations in Circular 39/2014/TT-BTC on the sale of goods invoices and service provision.

Duy Thinh

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