Validity of Documents on Electronic Invoices That Accountants Need to Note

1. Effective Date of Regulations on Electronic Invoices

- Circular 68/2019/TT-BTC guiding some provisions of Decree 119/2018/ND-CP regarding electronic invoices when selling goods and providing services is effective from November 14, 2019.

- From the effective date of Circular 68/2019/TT-BTC until October 31, 2020, the following documents are still effective:

+ Circular 32/2011/TT-BTC guiding the creation, issuance, and use of electronic invoices for selling goods and providing services;

+ Circular 191/2010/TT-BTC dated December 1, 2010, guiding the management and use of transport invoices;

+ Circular 39/2014/TT-BTC amended and supplemented by Circular 119/2014/TT-BTC dated August 25, 2014, and Circular 26/2015/TT-BTC dated February 27, 2015;

+ Decision 1209/QD-BTC on piloting the use of electronic invoices with tax agency authentication codes, Decision 526/QD-BTC on expanding the scope of piloting the use of electronic invoices with tax agency authentication codes;

+ Decision 2660/QD-BTC on extending the implementation time for Decision 1209/QD-BTC;

+ Circular 37/2017/TT-BTC amending and supplementing Circular 39/2014/TT-BTC (amended and supplemented by Circular 119/2014/TT-BTC and Circular 26/2015/TT-BTC).

- From November 1, 2020, the aforementioned Circulars and Decisions of the Ministry of Finance are no longer effective.- From November 1, 2020, businesses, economic organizations, other organizations, households, and individual businesses must register to apply electronic invoices as guided in Circular 68/2019/TT-BTC.

Illustrative image (Source: Internet)

2. Guidance on Handling and Applying Electronic Invoices

- From the time businesses, organizations, individuals, households, and individual traders use electronic invoices as prescribed in Decree 119/2018/ND-CP and Circular 68/2019/TT-BTC, if an invoice issued in accordance with Decree 51/2010/ND-CP, Decree 04/2014/ND-CP, and its guiding documents by the Ministry of Finance has errors:

+ The seller and the buyer must create a written agreement specifying the errors and notify the tax agency according to Form No. 04 issued with Decree 119/2018/ND-CP.

+ The seller issues a new electronic invoice (with or without tax agency authentication codes) to replace the erroneous issued invoice. The replacement electronic invoice must state “Replacing invoice Form No... symbol... No... dated... month... year.” The seller signs the new electronic invoice replacing the erroneous issued invoice (as prescribed in Decree 51/2010/ND-CP, Decree 04/2014/ND-CP, and its guiding documents by the Ministry of Finance).

+ The seller sends the new invoice to the tax agency to get a code (for invoices with tax agency authentication codes).

- During the period from November 1, 2018, to October 31, 2020, if the tax agency informs the business establishment to switch to using electronic invoices according to Decree 119/2018/ND-CP and Circular 68/2019/TT-BTC, but the business establishment does not meet the IT infrastructure conditions, it must continue to use invoices in the aforementioned forms and send invoice data to the tax agency according to Form No. 03 Appendix issued with this Decree, along with the value-added tax returns. The tax agency will build the invoice database of business establishments to integrate into the invoice database and publish it on the electronic information portal of the General Department of Taxation for invoice data search purposes.

- For public service organizations (public education institutions, public health institutions) that are already using cash receipts, they may continue to use the cash receipts they previously used. If the tax agency notifies to switch to using electronic invoices with tax agency authentication codes:

+ If public service organizations (public education institutions, public health institutions) do not meet the IT infrastructure conditions and continue to use combined invoices and cash receipts as prescribed in Decree 51/2010/ND-CP and Decree 04/2014/ND-CP dated January 17, 2014, by the Government of Vietnam, they must submit the invoice data to the tax agency according to Form No. 03 Appendix issued with Decree 119/2018/ND-CP along with the value-added tax returns.

+ If the conditions on IT infrastructure are met, public service organizations (public education institutions, public health institutions) must register to use electronic invoices with or without the tax agency authentication codes as prescribed in Articles 8 and 13, Circular 68/2019/TT-BTC.

The above contents are based on Official Dispatch 4178/TCT-CS issued on October 15, 2019.

Lawyer Nguyen Thuy Han, in charge of the Law Community Network of LawSoft shares: "Currently, there are still many inquiries related to the mandatory use of electronic invoices."

To be specific, Tax Management Law 2019 stipulates that the use of electronic invoices will apply from July 1, 2022. Meanwhile, according to the provisions of Decree 119/2018/ND-CP, this deadline is from November 1, 2020.

According to Article 156, Clause 2 of the 2015 Law on Promulgation of Legal Documents, "In case of different provisions on the same issue, the text with the higher legal effect will apply." Therefore, the mandatory use of electronic invoices must follow the Tax Management Law 2019 from July 1, 2022."

Additionally, Lawyer Nguyen Thuy Han further stated: "The effective date of the 2019 Tax Management Law begins from July 1, 2020, so from now until the effective date of the 2019 Tax Management Law, there should be specific guidance documents on when to start the mandatory use of electronic invoices. Furthermore, the 2019 Tax Management Law encourages individuals and organizations to adopt electronic invoices before July 1, 2022."

Duy Thinh

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